Details

Title	Minnesota Property Tax Fact Sheets
Highlights	There is implicit recognition that property taxes have a negative impact on lower income homeowners.   Minnesota offers property tax exemptions for improvements, tax deferrals, and tax refunds to certain Minnesota residents.
Description	The State of Minnesota offers a number of property tax relief programs. The state provides a full or partial exemption from property taxes for certain improvements to a homestead. In order to qualify for the exemption the property must be at least 45 years old and cannot be valued at more that $400,000 before the improvement. There are limits to the amount of new value that can be exempted from property taxes depending on the age of the property but there must be at least $5,000 worth of value added to the property. The state also allows certain senior citizens a deferral of property taxes owed to the local government. This program is for those over 65 with income $60,000 or less. The program provides a deferral of taxes, not a forgiveness of the taxes. It allows elderly taxpayers to limit their taxes to 3 percent of their income with the balanced deferred. The deferred taxes become due when the property is sold, the homeowner dies, the homeowner voluntarily leaves the program or the property no long qualifies as a homestead. In addition, Minnesota allows renters and homeowners to receive a refund of a portion of the property taxes paid to a local government. To be eligible a taxpayer must meet certain income guidelines, must have lived in the state for over one-half of the year, and cannot be another taxpayer’s dependent. For those who rent, the refund is based on a sliding scale that compares income to rent paid. Site accessed in September 2002.
Publication Date	2002
Organization	Minnesota Department of Revenue
Web Location	http://www.taxes.state.mn.us/property/publications/fact_sheets/property_fact_sheet.shtml

Notice: The contents of this record reflect the views of the author and/or promulgating municipality, and should not be construed as representing the views or policies of the U.S. Department of Housing and Urban Development or U.S. HUD's Office of Policy Development and Research. No attempt has been made by U.S. HUD or its contractors to verify the accuracy, currency, or validity of the record contents presented herein.