By Alan Van Ormer
Tribune editor

If there were a 60 percent approval by voters to build an elementary school at the Nov. 16 bond election it would impact almost everyone’s pocket book.
An affirmative vote would mean an across the board tax levy increase of $1.36 per $1,000 valuation. The money would be placed into a bond redemption fund for paying back the elementary school bonds over a 20-year period.
For the commercial segment of the community, Minnehaha County Economic Development Association Executive Director Jeff Eckhoff said he is pretty confident the vast majority of the businesses feel that a good school facility is an important part of a town’s growth. “Your business people are the most pro growth segment of your population,” he said.
In the agricultural community, Bruce Burkhart, who does support the bond election, said obviously an increase in the tax levy would cost more for farmers. “The tax on real estate is not equitable across the community,” he said. “Farmers are paying more of a share than some non-farmers.”
Tom Schwebach, owner of Schwebach Reality, said the tax levy increase would have some effect on the housing market. “For most buyers, it is going to be part of the payment,” he said. “It may effect someone who is purchasing a house if they strictly look at the payment on what they can afford.”
Schwebach said that whenever there is an addition or new school built, everybody has to pay for it. “In a tight economy like this, the budget is a big thing for everybody right now,” he said.
In the 2010 budget, tax levies in the Dell Rapids School District will either stay the same or decrease from the previous year budget. This means that those who own agricultural property would be paying $2.57 per $1,000 valuation for the general fund. For ag parcels that have an estimated value of $100,000, this would mean the tax would be $257. If the bond election is successful, an additional $1.36 per $1,000 valuation would increase their tax payment $136 a year.
In the last 10 years, farmland has increased greatly in value, according to Burkhart. “That doesn’t necessarily mean the farmer is able to pay the tax because of market influences on profits. This has always been a concern,” he said. “The most fair way to tax an entire society is based on ability to pay.”
For owner-occupied structures, the 2010 levy is $4.04 per $1,000 valuation for the general fund. For a home that costs $100,000, the tax would be $404. Again, the tax increase would be $136 to pay for the elementary school.
In Dell Rapids, Schwebach said there are 42 active houses listed, which is more than normal for this time of the year, but states that a new school is important for buyers moving to Dell Rapids.
“A new school is going to be appealing for those who are interested in moving to Dell Rapids,” he said. “The tax levy increase might not have an impact on new people moving to town because they are going to be drawn in with the appeal of a new school. They are going to understand that taxes are going to be higher because of a new school.”
Those who own commercial property, the 2010 tax levy is $8.65 per $1,000 of valuation in the general fund. Commercial property owners would see their taxes at $865 for a $100,000 piece of property before the $1.36 tax levy increase.
Based on valuation, Eckhoff said commercial property owners pay a higher rate.
“You want to be careful on how much burden you put on businesses,” he said.
“Businesses rely on growth to expand their base for sales. And more growth helps lessen property tax. Most of the time when you talk to businesses, they don’t have a problem with an increase. They just want it to be fair.”