Pierz Schools Property Taxes to Stay Low
A look at some Facts about Taxes. Some key points about this year’s annual Levy are:
All the data supplied in this report comes from the MN Dept of Education and from Finance companies like Ehlers and Associates who work to gather the actual figures from counties, school districts and department of education to provide accurate information.
Please take a look at these several comparisons that show that Pierz school taxes are low.
We will show the following comparisons:
To be clear, all of this comparison data from other Districts is based upon 2017 tax information, with the exception of the one chart that shows what Pierz is actually proposing in our Levy for 2018. We cannot get these other comparisons for 2018 at this time. But you can be assured the comparison data will still be as good or better in 2018, as we know for certain our School District local taxes are not increasing to any degree.
In total school property taxes, Pierz residents pay less than all other nearby districts and less than the state average.
- Pierz is less dependent on property taxes than any other District in our area. We have the lowest ratio of property taxes relative to our entire budget. A Graph below outlines those numbers and percentages.
- In 2018, through a combination of lowering our Lease Levy and the School Building Credit, Ag Land Taxes will decrease by about 22%.
- The total dollar amount levied will be pretty much the same as in 2017. Which in turn is pretty much the same as it has been for 6 years. Ironically, it is also pretty much the same as it was in 1992. So even though our overall budget has changed dramatically during that time, the actual dollars our local residents pay, remains pretty much the same.
- If your farm, homestead or business was located in any district around us other than Pierz, you would pay higher school taxes. Again we will show charts that verify this data.
All the data supplied in this report comes from the MN Dept of Education and from Finance companies like Ehlers and Associates who work to gather the actual figures from counties, school districts and department of education to provide accurate information.
Please take a look at these several comparisons that show that Pierz school taxes are low.
We will show the following comparisons:
- Pierz Property Tax Levy History in relation to the Total District Budget
- Comparisons to other Local Districts of their Property Taxes and Total Budget
- Actual Tax Dollars on Homestead compared to these Districts.
- Actual Tax Dollars on Ag Land compared to these Districts
- Actual Tax Dollars on Commercial Property compared to these Districts.
- Pierz Property Taxes per Student Compared to Other Local Districts
To be clear, all of this comparison data from other Districts is based upon 2017 tax information, with the exception of the one chart that shows what Pierz is actually proposing in our Levy for 2018. We cannot get these other comparisons for 2018 at this time. But you can be assured the comparison data will still be as good or better in 2018, as we know for certain our School District local taxes are not increasing to any degree.
In total school property taxes, Pierz residents pay less than all other nearby districts and less than the state average.
Pierz Levy Historical Information
In a different comparison, property tax revenue from Pierz residents accounts for approximately 9% of total school revenue; neighboring districts residents pay between 12% and 19% (see chart below)
Comparison District Property Taxes on Residential Homestead values at $150,000
Comparison District Property Taxes on Ag Land valued at $2500 per Acre
Comparison District Property Taxes on Commercial Property valued at $200,000
Comparison District Property Taxes Per Student
And, in yet another way to look at it, less revenue per student comes from property taxes in Pierz than in the rest of Minnesota. This takes some explaining. School revenue comes from the state and federal governments, as well as from local property taxes in the form of operating levies, building bond, and other levies. Statewide, school districts receive $2,664 per student in local property taxes, on average. But in Pierz, we receive $928 per student from local property taxes. That’s 187% less than the state average!
The Data below if from the Audit information from the 2016-17 School Year Audit just completed and ratified in November. It shows the Comparisons of all Funding Categories between Pierz School District and the State Average. You can see that when it comes to State Aid and some of the other funding, like Food Service, etc. Pierz is pretty much the same as the rest of MN School Districts. But when it comes to the areas of Local Operations Levy and then School Construction Bond Payments (called Debt Service) Pierz receives far less than the State Average.
The Data below if from the Audit information from the 2016-17 School Year Audit just completed and ratified in November. It shows the Comparisons of all Funding Categories between Pierz School District and the State Average. You can see that when it comes to State Aid and some of the other funding, like Food Service, etc. Pierz is pretty much the same as the rest of MN School Districts. But when it comes to the areas of Local Operations Levy and then School Construction Bond Payments (called Debt Service) Pierz receives far less than the State Average.
Property taxes explained
Proposed property tax statements were mailed by Morrison County toward the end of November. We would like you to have a better understanding of the school property tax history, why tax amounts change, what is on your statement and what happens next.
Why are my taxes increasing or decreasing?
There are a number of factors that cause an increase or decrease, but the biggest factor is change in property tax classification (for example, changing from homestead to non-homestead). The value of your property also impacts how much you pay in taxes. And, yes, county, city, township, and school taxes will vary.
2018 school district property tax changes
Once the Credits are applied, Pierz Schools anticipates a property tax increase of approximately 1.4% in 2018 over 2017. It might even be lower once total tax capacity is determined. Basically, about a $17,000 increase against a total $1.2 Million Annual Levy.
The large share of this increase has to do with how the State collects and makes payments. Last year the state collected about $25,000 less than 2016 to make payments. In 2018 the state will collect 31,000 more than 2017 to make the same payment. Sounds confusing, but it is true. Those fluctuations in how they manage debt service collecting and payments have nothing to do with our school revenue. Our School Board and Administration actually “under-levied”, in the category of our Lease Levy, compared to what we did in 2017 just to makeup for these state changes that are out of our control, yet we know impact your bottom line.
The other factor is that the state constantly monitors what they call Total Tax Capacity for every district in Minnesota. So percentages on what share they pay compared to what they expect local property tax payers to contribute in certain levies constantly changes. These are often minor changes, but still move the total percent up or down a few percentage points each year, regardless of any action we take.
What’s on your statement
Your Proposed Taxes 2018 statement from Morrison County includes:
School district taxes are broken down into two categories:
The amount of taxes for each unit of government: county, townships, city of Pierz, and Pierz Public Schools, is proposed to change somewhat; however, actual taxes will change again from the estimates you see on your 2018 Proposed Property Tax statement after these governments finalize their budgets.
Contact your local city or township for information on Truth in Taxation hearings. Morrison County has an excellent Frequently Asked Questions web page about assessment and property taxes.
Finally, if you have questions about school property taxes, or any other Pierz Schools related questions, please contact me at gweber@pierz.k12.mn.us or 320-468-6458.
Proposed property tax statements were mailed by Morrison County toward the end of November. We would like you to have a better understanding of the school property tax history, why tax amounts change, what is on your statement and what happens next.
Why are my taxes increasing or decreasing?
There are a number of factors that cause an increase or decrease, but the biggest factor is change in property tax classification (for example, changing from homestead to non-homestead). The value of your property also impacts how much you pay in taxes. And, yes, county, city, township, and school taxes will vary.
2018 school district property tax changes
Once the Credits are applied, Pierz Schools anticipates a property tax increase of approximately 1.4% in 2018 over 2017. It might even be lower once total tax capacity is determined. Basically, about a $17,000 increase against a total $1.2 Million Annual Levy.
The large share of this increase has to do with how the State collects and makes payments. Last year the state collected about $25,000 less than 2016 to make payments. In 2018 the state will collect 31,000 more than 2017 to make the same payment. Sounds confusing, but it is true. Those fluctuations in how they manage debt service collecting and payments have nothing to do with our school revenue. Our School Board and Administration actually “under-levied”, in the category of our Lease Levy, compared to what we did in 2017 just to makeup for these state changes that are out of our control, yet we know impact your bottom line.
The other factor is that the state constantly monitors what they call Total Tax Capacity for every district in Minnesota. So percentages on what share they pay compared to what they expect local property tax payers to contribute in certain levies constantly changes. These are often minor changes, but still move the total percent up or down a few percentage points each year, regardless of any action we take.
What’s on your statement
Your Proposed Taxes 2018 statement from Morrison County includes:
- Your property valuation and classification
- Any property tax credits (such as the school building bond credit for agricultural landowners – known as AG2School)
- Estimates made by local units of government on the amount of proposed taxes to be collected next year in comparison to actual taxes paid in 2017, including:
- County
- City
- Township
- State
- School District
- Special Taxing Districts
- County
- Total
School district taxes are broken down into two categories:
- School voter approved levies (Operating referendum, bond referenda)
- School other local levies (Lease levies, health and safety levies, etc.)
The amount of taxes for each unit of government: county, townships, city of Pierz, and Pierz Public Schools, is proposed to change somewhat; however, actual taxes will change again from the estimates you see on your 2018 Proposed Property Tax statement after these governments finalize their budgets.
Contact your local city or township for information on Truth in Taxation hearings. Morrison County has an excellent Frequently Asked Questions web page about assessment and property taxes.
Finally, if you have questions about school property taxes, or any other Pierz Schools related questions, please contact me at gweber@pierz.k12.mn.us or 320-468-6458.
