MN HF3643

Creates a school building bond credit for class 2a, 2b, 2c, and 4c(12) properties, excluding the house, garage, and one acre of agricultural homesteads, equal to 50 percent of the property's eligible net tax capacity multiplied by the school debt tax rate.

County auditors determine tax reductions allowed under the credit for each taxes payable year and certify amounts to the commissioner of revenue, who reviews for accuracy and pays reimbursements to school districts through the Department of Education.

An amount sufficient to make required payments is annually appropriated from the general fund to the commissioner of education.

The school building bond credit is added to the list of property tax credits applied in a specific order when computing net property taxes under Minnesota Statutes section 273.1393.

The auditor must determine the school debt tax rate for each school district by dividing the school debt service levy by the total net tax capacity of all taxable property within the district.

All provisions are effective beginning with taxes payable in 2017.