South St. Paul School District
Property Tax Information Site

This site provides information for taxpayers of the South St. Paul School District regarding how the district’s proposed referendum will affect their property taxes. The site was prepared by the school district’s financial advisors, Ehlers & Associates, Inc. If you have questions about the information on this site, you may call Ehlers at one of the numbers listed below.

About the Referendum

The district will be holding a referendum on a single ballot question on November 4, 2003. The ballot question would eliminate the district’s existing operating referendum authority ($223.52 per pupil unit for the next two years) and replace it with a new authority of $869.57 per pupil unit. If approved, the referendum would increase the district’s general fund revenue by approximately $2.4 million for the 2004-05 fiscal year and would remain in place for 10 years. The new authority would cause an increase in property taxes for 10 years, beginning with taxes payable in 2004. The additional revenue could be used for general operating expenses of the district. For more information on how the funds would be used, click on the "Return to School District Web Site" button above.

Impact on Property Taxes

To determine how much the proposed referendum is estimated to increase your property taxes, follow the steps below. We suggest that first you find one or both of the following documents:

• your 2003 property tax statement ("Statement of Property Taxes Payable in 2003," mailed by Dakota county in February or March of 2003); or
• your "Notice of Valuation" (mailed by your local assessor in the spring of 2003).

Step 1. Determine the 2003 Taxable Market Value of your property. Taxable Market Value (or TMV) is a figure used by your county to calculate property taxes. It is usually less than the fair market value or the actual price if you were to sell your property. Your tax statement for 2003 will show the 2002 TMV.

Taxes on the proposed referendum will begin with taxes payable in 2004, which will be based on the 2003 TMV. We suggest you use one of the following methods to determine or estimate the 2003 TMV.

1. If you have the 2003 Notice of Valuation available, find the number labeled "Taxable Market Value" in the 2003 valuation column.
2. Look up your TMV from the Dakota County web site. Go to the following address:

   http://207.171.98.200/scripts/esrimap.dll?name=WebQ1&Cmd=Map

   You will be prompted to find your property by entering your address, your Property Identification (PIN) number, or by locating your property on an interactive map. Once you have located your property, click on "Details." Then look for the total value listed under "2003 Taxable/Limited Market Value."

3. Look up the 2002 TMV from your 2003 property tax statement. This will be toward the upper right corner of the statement. Be sure to pick the number labeled "Taxable Market Value" in the 2003 column. Once you have found this figure, you may estimate the increase in value for the next year.

Step 2.Enter the Taxable Market Value below to see the estimated tax increase for your property.

Step 3. If your property is a "Residential Homestead" (i.e., an owner occupied home), review the information below regarding the effect of the proposed tax increase on state tax refunds and your state and federal taxes.

1. Minnesota Property Tax Refund.

   If your adjusted gross income is less than approximately $82,000, you may qualify for the Minnesota Property Tax Refund (also known as the "Circuit Breaker" refund). This program, which has existed since the 1970s, is intended to reduce tax burdens for homeowners with relatively low incomes and relatively high property tax burdens. Some important facts about this program are summarized below.

   • Available to all owners of residential homestead and agricultural property with incomes of approximately $82,000 or less.
   • Refund is a sliding scale, based on your income and your total property tax burden.
   • The maximum refund is $1,530.
   • To determine eligibility and refund amounts, complete Minnesota tax form M1PR (available online at www.taxes.state.mn.us).

   If you qualify for this program, you may receive an additional refund of up to 80% of the amount of the property tax increase caused by the proposed referendum. For example, if the referendum increases your property taxes by $100 per year, your refund may cover up to $80 of this increase.

2. Special Property Tax Refund

   If your total property taxes increase by more than 12% and more than $100 between 2003 and 2004, you may qualify for a state refund equal to a portion of the increase. There is no income limit for this refund. To determine eligibility and refund amounts complete Minnesota tax form M1PR (available online at www.taxes.state.mn.us).

3. Deductibility of Property Taxes for State and Federal Income Taxes

   If you itemize deductions for federal income taxes, you may deduct all property taxes paid. Therefore, any increase in property taxes resulting from the proposed referendum will reduce your income tax liability. The reduction in income taxes may be as much as 42 percent of the increase in property taxes, depending on your total income and other credits and deductions.

© 2003 Ehlers & Associates, Inc. All Rights Reserved.