07.06 - SCHOOLS - Minnesota Department of Revenue - Home · · 2016-01-2607.06 - SCHOOLS . Overview . The ... Some of this information is also needed by the school districts for

CHAPTER 7 – REPORTING

07.06 - SCHOOLS Overview The statutorily prescribed method for determining levy limits for schools is extremely complicated. The County Auditor plays a role in reporting information on abatements, tax extensions, and credits that the Minnesota Department of Education and school districts need for calculating certain types of levy limits. Some of this information is also needed by the school districts for preparing their annual financial statements (“CAFR’s”). Since many school districts extend across county lines, the process of preparing these reports often involves cross-county cooperation and data sharing. The home county auditor will accumulate data for the school district as a whole. 6 Month School Abatement Report Description Report of the abatements that have occurred within the first six months of the calendar year for a particular school district. The word abatement here refers to any adjustment to the amount of taxes due that varies from the amounts originally extended. Consequently, the report includes, but is not limited to, the following adjustment types: reductions due to abatements or tax court petitions as well as increases due to omitted property. The report includes the amount of taxes adjusted and the associated value adjustment (net tax capacity or referendum market value). Tax adjustment amounts are grouped by the tax base type, showing decreases and increases separately, with subtotals by county. The amounts shown can be for multiple tax payable years as long as the adjustment was finalized in the first six months of the year. Use(s) Gives the school district information to determine if they want to levy for lost revenue. If they choose to levy for lost revenue, the MN Department of Education uses this information

for determining levy limits for the schools. Who Prepares the Document County Auditor

Who Gets the Document MN Department of Education. Each school district gets a copy of their report. If you are not the home county auditor for a school district, you need to complete the form for your county and forward it to the home county auditor. Statutory Cite M.S. 126C.46

SCHOOLS 07.06 - 1 REVISION DATE: JANUARY 2016

https://www.revisor.mn.gov/statutes/?id=126C.46


Timing Statutory due date is 7/15. Since the report includes adjustments through 6/30, it must be prepared after that date. Source of Data Data on adjustments can be pulled from the adjustment summary or equivalent. If such a summary does not exist, the information can be pulled from the adjustment source documents. Cross-county data is certified to the home county auditor. Sample

Yearly School Abatement Report Description Report of the abatements that have occurred within the prior calendar year for a particular school district. The definition of abatement is the same as for the six-month report. The report has the same data groupings as the six-month report. Unlike the six-month report, this report also includes the amount of interest paid on adjustments (tax court petitions). Use(s) Used by the MN Department of Education to calculate school abatement levies and abatement

aids.



Who Prepares the Document County Auditor

Who Gets the Document MN Department of Education. Each school district gets a copy of their report. If you are not the

home county auditor for a school district, you need to complete the form for your county and forward it to the home county auditor.

Statutory Cite M.S. 127A.49, subd. 2

Timing Statutory due date of prior to 2/01. Includes adjustments through 12/31 of the prior year so the report cannot be started until after that date. Source of Data Data on adjustments can be pulled from the adjustment summary or equivalent. If such a summary does not exist, the information can be pulled from the adjustment source documents. Cross-county data is certified to the home county auditor. Sample


https://www.revisor.mn.gov/statutes/?id=127A.49


School Tax Report Description The School Tax Report shows the values, levies and resulting rates used for extending school district taxes for that year. Values are split between JOBZ vs. non-JOBZ, and tax capacity vs. referendum market value components. The second page shows the certified levy by purpose along with levy adjustments. This page also shows the resulting tax rate and tax extensions for that levy. Use(s) Provides final levy certification for use in audits and future levy limit calculations.


Who Gets the Document MN Department of Education

Statutory Cite M.S. 275.124

Timing Statutory due date prior to 4/01. Tax rates must be finalized and taxes extended before this report can be generated. Source of Data Values can be pulled from the final assessment abstract run when final tax calculations are taking place. It will be helpful to run the report by school district. Levies will be taken from the school’s final levy certification by type of levy. The county auditor levy adjustments are taken from this same form. These adjustments are required reductions to debt service levies because of existing debt service excess fund balances. The fiscal disparity adjustment is the fiscal disparity distribution dollars from Table VIII allocated proportionately based on the certified levy as adjusted for excess debt service. The distribution dollars resulting from market value based levies are allocated separately from tax capacity based levies. Rates can be pulled from the tax rate calculation source used by the county. The computed levies should match the abstract of tax list lines shown on the report. Cross-county data will be certified to the home county auditor. Sample See next page.


https://www.revisor.mn.gov/statutes/?id=275.124


ED-00119-30

Page 2Date0

(21) (22) (23)* (24) (25) 2005 (26)

TYPE OF SCHOOL PROPERTY TAX LEVY CERTIFIED LEVY

COUNTY AUDITOR ADJUSTMENT

FISCAL DISPARITIES ADJUSTMENT ADJUSTED LEVY

INITIAL TAX RATE

ABSTRACT OF TAX LISTS ITEM

# COMPUTED LEVY(Dollars & Cents) (Dollars & Cents) (Dollars & Cents) Cols. 21 + 22 + 23 (Dollars & Cents)

1) GENERAL RMV VOTER JOBZ Non-Exempt -$

1999-$

(Col. 10 + 20) x Col. 25

2) GENERAL RMV VOTER JOBZ Exempt -$

2000-$

(Col. 10 x Col. 25)

3) GENERAL RMV OTHER JOBZ Exempt -$ 2005 -$

(Col. 10 x Col. 25)

SUBTOTAL (Spread on SD Ref MV) -$ -$ -$ -$ 0.00000

2010-$

4) GENERAL NTC VOTER JOBZ Exempt -$

720-$

(Col. 7 x Col. 25)

5) GENERAL NTC OTHER JOBZ Exempt -$

725-$

(Col. 7 x Col. 25)

6) COMMUNITY SERV OTHER JOBZ Exempt -$

740-$

(Col. 7 x Col. 25)

7) GENERAL DEBT SERV (VOTER APPROVED) JOBZ Non-Exempt -$

745-$

(Col. 7 + 17) x Col. 25

8) GENERAL DEBT SERV (VOTER APPROVED) JOBZ Exempt -$

750-$

(Col. 7 x Col. 25)

9) GENERAL DEBT SERV (OTHER) JOBZ Non-Exempt -$

755-$

(Col. 7 + 17) x Col. 25

10) GENERAL DEBT SERV (OTHER) JOBZ Exempt -$

760-$

(Col. 7 x Col. 25)

SUBTOTAL (Spread on NTC) -$ -$ -$ -$ 0.000 770 -$

TOTAL FOR ALL LEVIES -$ -$ -$ -$ -$

-$

District Number and Name0 0 0 0

S C H O O L T A X R E P O R T 2 0 0 5 - 2 0 0 6 ( C O N T I N U E D )

Total Disparity Aid*

Total Spread Levy

*Enter as a negative amount.

Spread on SD Ref MV

Spread on Net Tax Capacity

County NameTelephone NumberCounty Auditor's Office Contact Person



School Tax Receivable (Form 51) Description School district fiscal years run from July 1 to the following June 30. This report shows the amount of taxes receivable for a particular school district in your county as of June 30 by tax payable year. The report includes amounts for real estate, personal property and manufactured home taxes even though manufactured homes were not part of the levy certification or rate calculation process. For prior tax payable years, the report shows the balance from the prior year’s form 51, any adjustments (split between additions or reductions) and a breakdown of advances, partial settlements and settlements paid to the school district for each tax payable year. The bottom line is the amount still owed to the school district for that tax payable year as of the end of the school’s fiscal year. For the current tax payable year, the main difference is that the total levies, credits and aids must be shown to reflect the original balance due. The report also includes amounts that have been received by the county that may not have been disbursed yet to the school district as part of the first half tax settlement typically paid in early July. Use(s) To provide school districts with information needed to properly record current and delinquent

taxes receivable balances as of June 30, including adjustments as needed for the school district’s financial statement (CAFR).

To provide the Minnesota Department of Education with tax distribution information to calculate tax shift and school aid limitations.


Who Gets the Document School district Minnesota Department of Education

Statutory Cite None. This is an administrative report from the Office of the State Auditor.

Timing Since the report reflects activity through June 30, it can’t be completed until after that date. The report is typically prepared in July. Source of Data Beginning balances for prior tax years come from the prior year form 51. For the current year, beginning adjusted levies can be taken from the school tax report. Manufactured home levies can be taken from the manufactured home tax extension or equivalent. Current year aids/credits will come from certifications from the MN Department of Revenue and from the credit portion of tax extension reports from your system. Prior year aid/credits will come from the



adjustment summary or equivalent. If such a summary does not exist, the information can be pulled from the adjustment source documents. Additions or reductions to levies come from this same adjustment source. Disbursement information can be pulled from the School Tax Settlement Report – Form 52. Balances as of June 30 can be tied to the sum of balances for real estate and personal property in the levy book plus the balances for manufactured homes in the manufactured home levy book. Sample

Taconite Credit Report Description This report summarizes the amounts of taconite homestead credit and supplementary taconite homestead credit attributable to all the school districts in the county by school district by fund. Page 2 of the report shows the total amount of the credit(s) by government unit by type of credit with actual amounts received for the prior year and estimated amounts to receive for the current year. The report must be completed by counties in the taconite tax relief area that currently includes all or a portion of Cook, Lake, St. Louis, Itasca, Koochiching, Aitkin and Crow Wing Counties.



Use(s) Provides data needed by the MN Department of Education for future levy limit calculations.


Who Gets the Document MN Department of Education

Statutory Cite None.

Timing Requested date of 4/01 each year. Tax rates must be finalized and taxes extended for the year before this report can be finalized. Source of Data The calculation of credits on individual properties or a credit summary from the computer system. Sample

ED-02331-03Page Two

Date0

Taconite Homestead Credit Supplemental Taconite Credit Taconite Homestead Credit Supplemental Taconite Credit(M.S. 273.135) (M.S. 273.1391) (M.S. 273.135) (M.S. 273.1391)

County

Cities

Townships

School Districts * -$ -$ -$ -$

Special Districts

TIF

COUNTY TOTAL -$ -$ -$ -$

T A C O N I T E C R E D I T R E P O R T

County Name0

* Amounts shown on this line should agree with "total for all school districts in county" shown on page 1.

Actual for Payable 2005 Estimate for Payable 2006Type of Governmental Unit

T A C O N I T E C R E D I T B Y T Y P E O F G O V E R N M E N T U N I T

Please indicate total taconite credit for your county, by type of governmental unit.



School Referendum Notice Description This notice shows the estimated impact of a proposed school referendum. The notice must project the anticipated amount of tax increase in annual dollars and annual percentage for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district. While not directly responsible for generating this notice, the county auditor/treasurer nevertheless plays a role in its development. The notice must be sent to taxpayers and interested parties shown on the county’s records. Unless this mailing information is supplied automatically through access to GIS or other similar means, the school district will need to get the mailing information from the county. The school will also likely approach the county auditor for net tax capacities and referendum market values needed for determining estimated tax rates associated with the proposed referendum. School officials may not be familiar with tax rate calculation and tax extension procedures and may need assistance. It is not unusual for the county auditor to get questions from taxpayers when these notices are mailed. The best approach is to forward these questions to the school district. Be careful about getting pulled into discussions of those for and against the referendum and providing tax impacts that are different from those generated by the school district. Use(s) Notifies voters and taxpayers of the estimated tax impact of a proposed levy referendum.

Who Prepares the Document School district

Who Gets the Document Taxpayers in the school district

Statutory Cite M.S. 126C.17, subd. 9(b)

Timing At least 15 days but no more than 30 days before the day of the referendum. Source of Data For the purpose of giving mailed notice under this subdivision, owners must be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose name does not appear on the records of the county auditor or the county treasurer is deemed to have waived this mailed


https://www.revisor.mn.gov/statutes/?id=126C.17


notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. Estimated values used for calculating estimated tax rates can be pulled from the most recent assessment abstract. Sample See next page.








Documents

07.06 - SCHOOLS - Minnesota Department of Revenue - Home · · 2016-01-2607.06 - SCHOOLS . Overview . The ... Some of this information is also needed by the school districts for