District 88 estimates referendum's tax impact

Officials: Even with new levy, schools' share of property taxes would decrease

By RACHEL WEDDIG

Journal Staff Writer

NEW ULM -- When District 88 residents head to the polls on Nov. 6, thoughts of property taxes are likely to linger on their minds.

The district is seeking to raise $450 per pupil unit in a referendum; the levy would be in effect for ten years.

The referendum would generate $1.2 million for the general fund in 2002-2003. The amount generated would vary for each of the 10 years depending on enrollment.

Superintendent Harold Remme estimates that as a result of decisions by the Minnesota Legislature last June, the district will receive $30,000 less from the state in 2002-2003.

One major legislative change is in the source of education funding. Education funding will now come from state revenues received from sales and income taxes and not from property taxes.

Remme pointed out that agricultural land will not be subject to school tax but a farm house and an acre of surrounding land will be taxed similarly to a city home. In the past, referendum taxing sources were residential, commercial, agricultural land and recreational property such as cabins.

As a result of the legislature's actions, people should see a significant decrease in property taxes. Farmland property taxes should decrease 23-27 percent; taxes on business and commercial properties should decrease 10-12 percent, and taxes on city homes by 23 percent.

Remme has shared information from the county auditor about the impact of the referendum on property taxes. The levy would increase taxes on a $75,000 home by $101 a year; on a $100,000 home, by $134; on a $125,000 home, by $168; and on a $150,000 home, by $202.

Even if voters say "yes", the school portion of property taxes will be smaller than last year.

Even with the new levy in place, taxes on residential property valued at $150,000 would decrease $133 compared to last year. Taxes on commercial property valued at $150,000 would go down $1,075; taxes on a $395,000 160-acre farm homestead would go down $263; and taxes on a $320,000 160-acre non-homesteaded farm would decrease $495.

"Now is the time to invest in our schools, which is an investment in our communities," said School Board Chair Sue Ullery. "What better way to exercise local control of our schools than to invest your money right here in our communities. Your money will be used to to benefit your grandchildren, and your nieces and nephews, and your own children and the children who live in your neighborhood."

"It is imperative that people make the time to go to the polls on Tuesday," Ullery also said. "Voting 'yes' is the only responsible choice you have. Voting 'yes' is the right thing to do, for our children and for our community."