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2006 Tax Information—Page 2 6. NON-VOTER APPROVED REFERENDUM MARKET VALUE LEVY FOR SCHOOL DISTRICTS: Starting in payable 2004, there are two new non-voter approved school district general fund levies that are calculated and spread on referendum market value. The equity levy was formerly entirely paid by state aid. The transition levy was added to compensate school districts for revenue loss resulting from funding changes enacted by the 2003 legislature. Both levies are combined into one levy category on the certified levy, the General RMV Other. 7. HOMESTEAD CREDIT: Homestead Credit is based on the total market value of a taxpayer's homestead property. The homestead credit rate is .40%of market value on the first$76,000, with a maximum credit allowed of$304. For homes with market values in excess of$76,000, the homestead credit phases out at the rate of.09% of market value greater than $76,000.This means homes in excess of$414,000 market value will not receive any homestead credit. 8. AGRICULTURAL CREDIT: Agricultural credit is also based on market value and is limited to farm homestead property. The Ag Credit rate is .30% of farm market value excluding House, Garage and 1 Acre, with a maximum credit allowed of$345. The maximum is reached at a market value of$115,000. For homes with market values in excess of$115,000, the homestead credit phases out at the rate of.05%of the market value greater than $115,000. But the minimum credit for properties with market values greater than $115,000 is$230.This means homes in excess of$345,000 market value will receive the minimum $230 credit. Non- homestead agricultural land does not qualify for a credit. 9. STATE PROPERTY TAX: All Commercial, Industrial, Utility, Mineral and Seasonal Recreational Residential (cabins)property is subject to the State General Tax, a state property tax. There are two separate State General Tax rates starting in payable 2006. The proposed rates for taxes payable in 2006 are: 51% of tax capacity for Commercial Industrial property, and 29%of a slightly lower two-tier tax capacity for Seasonal Recreational Residential property.The tax applies to non-homestead Seasonal Commercial, Class 4c(1)property. The tax applies only to the third tier(over$2,200,000 taxable market value)of homestead Seasonal Commercial, Class 1 c property. The actual rate for all property subject to the tax in payable 2005 was 51.121%. 10. SENIOR CITIZEN DEFERRAL: The senior citizen deferral is often referred to as the"circuit breaker"for property tax increases for those on fixed incomes. There are homestead, income, age, longevity of ownership, and other requirements that must be met to qualify for this deferral. According to state statute, applications to qualify can only be reviewed and accepted by the Department of Revenue in St. Paul.The deferral is a lien on the affected property. 11. JOBZ: In 2003, the Minnesota legislature designated ten Job Opportunity Building Zones (JOBZ)statewide to stimulate business activity in Greater Minnesota through state and local tax incentives including reductions in property tax for qualified businesses. Retail development is not eligible for JOBZ benefits. Request a separate JOBZ information sheet for more details. Please feel free to contact Angela Burrs in the County Auditor's Office if you have any questions about any of this material. ROY A. LUUKKONEN,COUNTY AUDITOR CROW WING COUNTY COURTHOUSE 326 LAUREL STREET BRAINERD, MN 56401-3590 (218) 824-1045 FAX: (218) 824-1046 www.co.crow-winq.mn.us Crow Wing County Auditor