« Back to News & Notices

Do you Qualify for a Property Tax Refund

12/11/2020

You may quality for a Homestead Credit Refund and/or a Special Property Tax Refund

 

These refunds are administered by the Income Tax Division (not Property Tax Division)  These refunds can benefit both homestead property owners as well as renters.

Here is a link and a bit of information you can research it for yourselves or you can visit with your accountant.

Household Income Property Tax Refund

Homestead Credit Refund

Homestead credit refunds are intended to provide property tax relief to those whose property taxes are relatively high compared to their household incomes, or to those whose property taxes increase greater than a certain percentage from one year to the next. In 1975, the State of Minnesota began offering property tax relief to homeowners from the state’s general fund.

Renters may also qualify because a portion of their rent goes to pay property taxes on their residence. This percentage is statutorily determined by the legislature.

The Homestead Credit Refund is not administered by the Property Tax Division of the Department of Revenue because it is not technically considered a “property tax program.”

Rather, it is an income tax program and is administered by the Income Tax Division of the department. Both renters and homeowners must file the M1PR form with the department to apply for property tax refunds.

 

Special Property Tax Refund (“Targeted Refund”)

If the property taxes payable on a homestead property increase by more than 12 percent over the property taxes payable in the prior year on the same homestead property, if the property is owned by the same owner on January 2 of both years, and the amount of that increase is $100 or more, the homeowner may be eligible for a special property tax refund. However, any increase due to new improvements or the termination of any valuation exclusions is not eligible. There is no household income limit for this refund. The amount of the refund is 60 percent of the property tax increase in excess of the greater of a 12 percent increase or $100.

It should be noted that neither the owner nor the related occupant of a property which is classified as a relative homestead under Minnesota statutes, section 273.124, subdivison1, paragraph (c) may claim a property tax refund under Chapter 290A.

Images