Tax Aids and Credits

Other Local Government Payments - Taconite Aid Reimbursement

Statewide Outcome(s):

Taconite Aid Reimbursement supports the following statewide outcome(s).

Efficient and accountable government services.

Context:

The Taconite Aid Reimbursement is paid to school district #317 in Itasca County to compensate the district for the “mining occupation tax” tax reduction received before the law was changed in 1978.

Funding Source: State General Fund.

Strategies:

Provide property tax relief to a school district no longer receiving the taconite occupation tax reduction. The school district receives a reimbursement equal to the amount the district received in 1980 so this payment has remained constant at $561,050 over the years.

Results:

The potential fiscal impacts of a 1978 occupation tax law change are reduced for the school district.

Performance Measures Notes:

Number of school districts compares calendar year 1980 (previous) to 2012 (current).

In FY 2011, the reimbursement payment accounted for approximately five percent of total school district revenues.