The Tax Impact
Learn how the proposed plan impacts you.
Spending taxpayer dollars wisely is a priority for our school board and district administration. Oakes Public School has worked hard to develop a plan that invests in the immediate critical needs of our building while being cost-effective for taxpayers. The total cost of the project is $14.84 million, which will be paid using a 20-year bond.
How the proposed plan impacts you
The district’s financial advisor, PFM Financial Advisors, helped to create a tax impact calculator for district residents to understand their potential tax impact if the proposed bond is approved. To utilize the tax impact calculator, please follow the steps below. If you would like help calculating your tax impact or have questions, please contact Superintendent Anna Sell at 701-742-3234.
Download the Tax Impact Spreadsheet to your device.
Open the spreadsheet on your device.
Reference your tax statements to find the True and Full Value of your property. Enter that value into the spreadsheet to find your estimated tax impact.
Alternatively, to understand the tax impact on your property, see the provided tax impact table. Click the image to enlarge.
The property tax increase expires in 20 years or when an amount sufficient to pay for all approved projects has been collected, whichever happens sooner.
If voters approve the bond referendum, the district would borrow dollars, called General Obligation Bonds, at the current market rate. Currently, interest is approximately 4% - 5%.
If voters approve the funding, the district will follow the ND Century Code for publicly bidding on the project. If bids come in lower than estimated and the project costs less than projected, the remaining funds can be returned to local residents, resulting in tax savings.
North Dakota Primary Residence Property Tax Credit
The Primary Residence Credit (PRC) was established during the 2023 Legislative Session under House Bill 1158. The credit provides all North Dakota homeowners with the option to apply for a state property tax credit through the North Dakota Office of State Tax Commissioner. Homeowners with an approved application may receive up to a $500 credit against their 2024 property tax obligation. To be eligible for the credit, you must own a home (house, mobile home, townhome, duplex, or condo) in North Dakota, and reside in it as your primary residence.
There are no age restrictions or income limitations for this credit. Only one Primary Residence Credit is available per household. Learn more here.
State funding could lower the cost of the plan and the property tax impact
If the referendum is successful, Oakes Public School has an opportunity to apply for a State School Construction Loan at a 2% interest rate. The process to obtain these funds is competitive, with a deadline of March 31, 2024. If funds are awarded to the district at a lower interest rate, it would lower the overall cost of the investment plan - resulting in tax savings.
What is a bond referendum?
A bond referendum is a local property tax approved by voters to fund new construction, renovation, and additions to existing school buildings and purchases of new equipment. A bond referendum is paid by all property owners based on the assessed value of their property.
What if the referendum fails?
Our critical building needs are not going away. If voters reject the bond referendum, the district cannot move forward with these improvements as its current budget is insufficient to address the full scope of repairs, renovations, and ongoing maintenance.