District 196 School tax levy declines againDistrict will collect less in taxes for the third straight year
By: Nathan Hansen, Rosemount Town Pages
For the third consecutive year, Independent School District 196 will collect less from residents in property taxes than it did the year before.
School board members voted 5-0 Monday to approve a preliminary property tax levy of $73,993,987. That is the maximum allowed under state levy limitations and a $1.9 million reduction – 2.53 percent — from what the district collected in 2012.
Minnesota school districts are required to submit preliminary levy information to the state by Oct. 1. Residents will receive property tax statements in November and the district will approve a final levy at its Dec. 10 meeting. That levy can be lower than what the district approved Monday, but it can not increase.
In 2010 the District 196 School Board approved a levy of $79.37 million.
The overall property wealth of the district has also been declining. The district’s referendum market value has decreased 2.3 percent from last year and its adjusted net tax capacity has decreased 4.98 percent. Both of those measures are used to calculate levy limits.
“This isn’t something unique to our district or community,” Solomon said of the declining property values. “This has been happening statewide.”
Jeff Solomon attributed this year’s reduction in the tax levy in large part to the district’s efforts to reduce its debt load. That reduction contributed to about $833,000 of the overall decline in the property tax levy, Solomon told board members Monday. Another $500,000 is the result of increased state equalization aid given to districts that have seen declining property values.
Property taxes account for about 22 percent of the total revenues District 196 will receive this year.