Every property owner pays property taxes for the various taxing jurisdictions in which their property is located. These jurisdictions include county, city or township, school district, and any other applicable special districts. Koochiching County collects the taxes from property owners and distributes the funds to the appropriate taxing jurisdiction.

Each year the different jurisdictions set their own tax levy as allowed by law. School districts are the only government entity that must hold an election to increase the amount of taxes collected; all other entities can simply increase the amount without voter approval.

Voter-Approved Levies:

The amount of taxes collected by a school district is based on voter-approved levies, which are proposed to residents, voted on during elections, and must be approved by the majority. There are three types of voter-approved levies.

o Operating Levies: can be used to pay for any operational expense of the district including salaries, classroom supplies, utilities and transportation. The duration of an operating levy can last up to 10 years. School districts are forced to rely more and more on operating levies due to state funding not keeping pace with the rate of inflation.

o Bond Levies: provide one-time revenue for the purpose of new facility construction, additions, or renovations.

o Capital Projects Levies: provide a designated amount of revenue for up to 10 years for a specific project.

Other Local Levies:

Per state law, Minnesota school districts can levy for specific programs such as board-approved referendums, location equity, health and safety, community education and others. They have very specific calculations set by law and most offer minimal compensation.

Tax Calculations Specific to You:

There are a number of factors that determine how much in taxes property owners pay to a school district each year. Additionally, the amount you pay in school district taxes will likely increase or decrease year to year due to changes to the factors described below.

4. Amount of levies (set by the school board and/or approved by voters) - amount is set during the Truth in Taxation hearing each year. The amounts can decrease as bonds are paid back or operating levies expire, or amounts can increase if new levies are approved.

5. Taxable market value of your property - this is set by the County Assessor and will change yearly. Your specific taxable market value is looked at as a percentage of the total community's taxable market value; so as new businesses and families move in, our tax base grows resulting in the levies being spread over more properties and lessoning the percentage you pay.

6. State Equalization Aid - each legislative session it is determined how much the state will provide in aid, which can offset the tax burden on local taxpayers.

7. Student Enrollment - some levies are funded on a per-pupil basis, so amounts can increase or decrease depending on how many students are enrolled.

International Falls Independent School District 361

SCHOOL DISTRICT FINANCIAL INFORMATION

School Finance: Why is it so complicated?

How is the district's budget organized?

How is the District funded?

How does student enrollment fund the District?

How does the District spend the revenue?

What is a Fund Balance?

How are my school taxes calculated?

Financial Documents