The House Education Finance Committee and the House Property Tax and Local Government Finance Division Committee held an informational hearing April 9 to discuss a proposal (HF 2077, sponsored by Rep. Steve Drazkowski) on agricultural property tax credit for school capital levies.
HF 2077 would provide a property tax credit on all agricultural property equal to 50 percent of the tax on the property attributable to school district debt levies. This agricultural credit would impact all Class 2a, Class 2b and Class 2c properties. The landowner would still have to pay regular school building bond taxes for a house, garage, and surrounding one acre of land.
This bill would impact current debt levies and new levies going into the future, and would be an ongoing open and standing appropriation. The total two-year statewide tax credit available to farmers is $97.3 million. (Taxes that would not have to be paid by farmers would be $47.6 million for fiscal year 2016; and $49.7 million for fiscal 2017.)
The bill was laid over for possible inclusion in the House Omnibus Taxes Bill. The Senate companion bill (SF 2004, sponsored by Sen. Lyle Koenen) will receive its first hearing Wednesday, April 15, in the Senate Taxes Committee.