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Last Updated: 10/26/2015

Distributions to IRRRB and Funds

The Iron Range Resources and Rehabilitation Board (IRRRB) administers various funds and grants funded by Production Tax revenues. For more information, please contact the IRRRB.

Iron Range Resources and Rehabilitation Board (IRRRB)

The IRRRB is a State of Minnesota development agency located in Eveleth, Minnesota. IRRRB’s mission is to promote and invest in business, community and workforce development for the betterment of northeastern Minnesota. The IRRRB receives 6.5 cents per taxable ton escalated by the Gross Domestic Product Implicit Price Deflator (GDPIPD). The distribution is guaranteed at a certain rate. It also receives a set amount each year of $1,252,520, which is the amount it received in 1977. The funds are used for general operating expenses and community development grants.

Taconite Economic Development Fund (TEDF)

The TEDF (also known as the Mining Reinvestment Fund) provides grants to mining companies for certain operating or capital improvement projects. The Production Tax distribution to this fund is currently 25.1 cents per taxable ton. No distribution is made if industry production falls below 30 million tons.

Taconite Environmental Protection Fund (TEPF)

The TEPF was created to reclaim, restore and enhance those areas of Minnesota adversely affected by mining taconite and iron ore. The fund receives 5 cents per taxable ton to provide grants to mining companies for certain projects. It also receives two-thirds of any remaining Production Tax revenues after initial distributions are made, including two-thirds of any excess Taconite Referendum Fund money. The TEPF partially funds grants to school districts for health, safety and maintenance improvements.

Douglas J. Johnson Economic Protection Trust Fund (DJJ)

The DJJ receives 3.35 escalated cents per taxable ton. It also receives one-third of any remaining Production Tax revenues after initial distributions are made, including one-third of any excess Taconite Referendum Fund money. The DJJ partially funds grants to school districts.

Iron Range Higher Education Account

The Iron Range Higher Education Account receives 5 cents per taxable ton to be used for higher education programs conducted at educational institutions in the Taconite Assistance Area. The Iron Range Higher Education committee and the IRRRB must approve all expenditures from the account.

IRRRB Education Revenue Bonds

The IRRRB was authorized by the Minnesota Legislature to issue the following revenue bonds to make grants to school districts. The bonds are paid from Production Tax revenues.

  • $38 million in revenue bonds were issued in 2009 to make grants to school districts in the Taconite Assistance Area for various building projects. The exception is the St. Louis County school district (ISD 2142), which must use its grant to reduce its debt service for a bond passed in 2009. The revenue bonds are paid from Production Tax revenues prior to calculating the remaining amount after distributions are made, up to a maximum of 10 cents per ton. Any amount more than 10 cents per ton is paid by the DJJ.
  • $15 million in revenue bonds were issued to make grants to school districts in the Taconite Assistance Area to pay for health, safety and maintenance improvements. The bonds are funded in equal shares from the TEPF and the DJJ.

Iron Range School Consolidation and Cooperatively Operated School Account

This fund was established by the 2014 Minnesota Legislature and is administered by the IRRRB. The fund will receive the following distributions starting in 2015 (based on 2014 production):

  • For production years 2014 through 2022, the fund receives 10 cents per taxable ton. (Starting in 2023, the amount will be reduced to 5 cents per ton.)
  • For production years 2014, 2015 and 2016, the fund receives two-thirds of the amount generated by the increase in the tax rate due to the change in the (GDPIPD). This amount is cumulative over the three years.
  • The fund receives 6 cents per taxable ton each year from the Occupation Tax.