Do schools lose tax money when the large dairy farms come into a community?
Schools gain revenue if an agreement with the dairy farm is negotiated that allows for a 100% agreement with a gift back to the school. If an agreement is arranged, the school system continues to receive the State formula dollars, plus the gift funds. If no agreements are created, the school sees roughly a zero increase in revenue even though the local tax revenues increase significantly because of the farm’s presence. All school districts are presently penalized by the state with a reduction of State formula dollars for any income increase in their real property tax stream. People opposing new livestock TIF or enterprise zone agreements are causing the loss of potential income to their school districts, rather than causing financial harm to the farm owners. Will large dairy farms decrease neighboring property values? There is no scientific study that supports a certain “yes” or “no” answer to this question. Large farms could even increase land value. The key element to keep in mind is
