As part of preparing the 2018-19 budget, the School Board sets its property tax levy. At the Truth And Taxation Hearing this week, Finance Director DeeDee Kahring told the board that its levy would increase tax revenue by 0.9 percent. Overall, however, school district taxes are on a downward trend, even with extensive school construction in the district over the last two years.

Kahring explained that the district’s property tax base is increasing as more homes are occupied and businesses open. As more property owners pay taxes, it requires less effort from each property for school district taxes. This is because school districts in Minnesota collect taxes differently from cities and counties. Essentially, the district levies a lump sum and divides it among all properties. Cities and counties traditionally use a percentage rate that is collected from each property.

The chart below shows an estimate of the school district tax rate for various home values. Individual property taxes will vary due to a variety of factors that can change the tax on each property.

Line chart of the Homestead Tax Levy Estimate for 2018