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Last Updated: 10/29/2015

Distributions to Taconite Property Tax Relief Fund

The Taconite Property Tax Relief Fund provides homestead credits to homeowners on the Mesabi and Vermillion ranges located within the Taconite Tax Relief Area. The fund also provides aid to counties and school districts with qualifying power plants. The fund receives 34.8 cents per taxable ton. Beginning with distributions in 2018 (based on the 2017 production year), the amount will be indexed based on the Gross Domestic Product Implicit Price Deflator (GDPIPD).

Homestead Credits for Homes and Farms

A credit of 66 percent of the property tax, up to a maximum credit determined each year, applies to owner-occupied homes and farms located in cities or towns in which:

  • the assessed valuation of unmined iron ore was at least 40 percent on May 1, 1941, or
  • there was a taconite mine, processing plant, or power plan on January 1, 1977, or
  • there is currently a taconite mine, processing plant, or power plant.

If a home or farm is not located in a qualifying city or town, but is located in a school district containing a qualifying city or town, the credit is 57 percent of the tax, up to a maximum credit determined each year.

St. Louis County acts as fiscal agent for the fund. If the fund balance and Production Tax collections are not sufficient to make the payments, the deficit is covered by the Douglas J. Johnson Economic Protection Trust Fund.

Counties with a Qualifying Power Plant

If a county has a mine-owned power plant within its boundaries that provides the primary source of power to a mining facility in another county, the county in which the power plant is located receives 0.1875 cent per taxable ton from the Taconite Property Tax Relief Fund (subject to adjustment by the aid guarantee).

School Districts with a Qualifying Power Plant

If  a school district has a mine-owned power plant within its boundaries that provides the primary source of power to a mining facility in another school district, the school district in which the power plant is located receives 0.4541 cent per taxable ton from the Taconite Property Tax Relief Fund (subject to adjustment by the aid guarantee).

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