SF 3805 Summary

• Creates a school building bond agricultural property tax credit equal to 50% of eligible net tax capacity multiplied by the school debt tax rate for agricultural properties (class 2a, 2b, 2c), excluding homestead houses and surrounding one acre, effective for taxes payable in 2018.

• Requires school district bonded debt authorizations approved after June 30, 2021, to be levied against referendum market value rather than net tax capacity, with equalization aid formulas adjusted accordingly effective for taxes payable in 2022.

• Modifies the debt service equalization aid program to separate calculation between net tax capacity and referendum market value eligible debt service revenue, establishing distinct tier structures for equalization.

• Changes state aid payment schedule from 12 equal monthly installments to 6 equal monthly installments beginning in July for school nonoperating funds, effective fiscal year 2019.

• Appropriates $2,000,000 annually beginning fiscal year 2020 to the small schools and cooperating school district facilities account, and authorizes up to $14,000,000 in state bond proceeds for cooperative facilities grants.