The Minnesota Department of Education last week notified North Branch Area Public Schools that the Minnesota Department of Revenue had discovered an error that affects the district’s overall proposed property tax levy, which was set Sept. 26.
The error was in the calculation of sales ratios that are used to set adjusted net tax capacities.
The ratio of sales to assessed value was higher than originally assumed, meaning that the taxable value dropped.
The result of this change is that the maximum proposed tax is about $126,000 less than the number approved Sept. 26.
The maximum increase dropped from 13 percent to 11 percent. Also, when comparing the maximum tax to the levy two years ago, rather than a 3.4 percent increase, the increase would be 1.5 percent.
Because the School Board took action to set the proposed levy at the maximum, this change will automatically be included in truth in taxation notices.