FAQs

Q. What is the difference between a bond and an operating levy? 
A. Bonds are for buildings. Levies are for learning. An operating referendum is an election asking voters to provide funds that the district uses to run and operate its schools. An operating levy is for running the educational programs at the school and goes to the district’s general fund to support students. Bond levies are for funds that the school district uses for new construction, updates to existing facilities, and other additions to school properties. Each fund remains separate and cannot be used for another purpose.

Q. Can I deduct the taxes paid on my State and Federal Income Taxes?
A. If you itemize deductions for federal income taxes, you may deduct all property taxes paid.

Q. Does farm property receive some tax relief?
A. Yes, for decades, farm families paid school operating levies on 1 acre of property that included the house, but paid school bond levies on all property. In 2017, the Minnesota Legislature approved a 40 percent tax credit for farm land school bond taxes. In 2019, the legislature approved higher tax credits to be phased in over time:

• 50 percent in 2020 

• 55 percent in 2021

• 60 percent in 2022, and 

• 70 percent in 2023 and after 

Q. How do schools impact the community?
A. According to the National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20. These findings indicate that additional school expenditures may benefit everyone in the community, whether or not those residents actually have children in the local public school system.