Agriculture is considered the backbone of America. The last legislative session achieved some needed relief for our important agricultural lands and the farmers that cultivate them. This came in the shape of a new, permanent tax credit called Ag2School.
The Ag2School tax credit comes as farmers have historically carried a high percentage of the school bond bill. Farmers in some agriculture-rich school districts like Byron can pay up to 10 times as much as other taxpayers in those same districts, according to the Minnesota Farm Bureau. This permanent Ag2School tax credit for agricultural land took effect on July 1, 2017.
Ag2School establishes a 40 percent agricultural bond credit that enjoyed a broad base of bipartisan support. It is permanent law, existing into perpetuity, as stated in the appropriations portion of MN State Statute 273.1387. Minnesota Rural Education Association Executive Director Fred Nolan states, "this tax credit gives farmers the tax relief that they deserve while providing schools with critical resources that they need for their facilities and it has created a fairer state share in 284 school districts in Minnesota."
In Byron, farmers will see a reduction of $-377.22 per $500,000 in agriculture land value, which comes out to $228,873. Local farmer Paul Daley said "with a struggling agricultural economy, this newly passed tax credit will certainly provide some much-needed tax relief for local farmers. We take pride in our schools and want to commend the legislature for recognizing and supporting the Ag2School tax credit."
The Ag2School credit applies to all current and future capital referendums, Minnesota Rep. Paul Anderson says in a report from the Council of State Governments. "If a farmer's levy for a school building referendum was $25 per acre, for example, the state would provide him or her with a credit of $10 per acre (40 percent)." Area farmers will see the 40 percent bond credit on the Proposed Tax statements in November.
Our farmers will benefit from the Ag2School Bond Credit. It provides a fairer state share of the costs of facilities to educate Minnesota's rural students.