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School board hears about Ag2School tax credit
Aug. 25, 2017

By Ivan Raconteur

LESTER PRAIRIE – Farmers in the Lester Prairie School District will experience about $34,000 in tax relief as the result of the Ag2School tax credit passed during the last legislative session.

Superintendent Jeremy Schmidt presented information about the new credit during Monday’s Lester Prairie School Board meeting.

The statewide credit is intended to reduce farm taxes owed for school bond payments in each school district.

Property in the classes 2a, 2b, and 2c of agricultural homestead property (excluding the house, garage, and one acre) is eligible.

The credit amount for each qualifying property is equal to 40 percent of the property’s eligible net tax capacity multiplied by the school debt tax rate.

The credit must be used to reduce the school district net tax capacity-based property tax.

Schmidt provided a document prepared by Springsted, the district’s financial consulting firm, that summarized the tax impact of the Ag2School credit on eligible agricultural property.

Some examples include:

A 50-acre agricultural homestead with an estimated market value of $397,000 would have paid $108 without the credit. This would be reduced to $65 after the credit.

A 100-acre agricultural homestead property with an estimated taxable market value of $794,000 would pay $215 without the credit, or $129 after the credit.

An eligible 50-acre non-homestead property with an estimated market value of $397,000 would pay $215 without the credit, or $129 with the credit.

An eligible 100-acre non-homestead property with an estimated taxable market value of $794,000 would pay $430 without the credit, or $258 with the credit.

The 40 percent that is taken off of the agricultural property taxes by the Ag2School credit will be reimbursed to school districts through the state’s general fund.

Odds and ends

In other business, the board:

• approved contracts with Christine Mattson, National Honor Society advisor; Troy Feltmann, media coordinator; Matthew Meyer, special education paraprofessional; Katherine Carmine, Future Problem Solvers coordinator; Jacob Oie, head cross country coach; Cheryl Bayerl, student council advisor; Terri Schuft-Helland, elementary and high school band performance; David Rue, elementary and high school choir performance; and Kim DeBruyckere, yearbook advisor.

• approved the resignation of Christy Maesse, library paraprofessional.

• scheduled the district’s annual truth in taxation meeting for Monday, Dec. 18 following the regular board meeting (required to start after 6 p.m.).

• approved Pamela Magistad as k-12 ELL/ESL teacher.

• approve lane change request for Bodil Empting from MA to MA +10.

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