Property tax refund programs
Help is available for property taxpayers
Several state programs, described below, exist to assist eligible residents with the rising cost of property taxes. For additional information and links to the government agencies that run these programs, view the information below or call the Minnesota Department of Revenue’s tax helpline at 651.296.3781.
Property tax refund program
The first program is the property tax refund program, or “circuit breaker.” For taxes paid in 2011, homeowners with 2010 household incomes up to $99,240 are eligible for a refund, and the maximum refund is $2,370. Some renters with 2010 household incomes up to $53,540 are also eligible for a refund. The maximum refund that may be available to a renter is $1,520, and the amount provided also depends upon the total rent paid in 2010. There are additional eligibility allowances for renters/homeowners over age 65; those who are disabled; and for the number of dependents. Forms can be obtained from the Minnesota Department of Revenue (DOR) and must be filed with the DOR by August 15, 2012.
Special property tax refund program
A second state program is the special property tax refund program for homeowners whose property taxes payable in 2011 have increased by more than 12 percent and are at least $100 over their 2010 taxes. The increase must not be attributable to new improvements, and homeowners must have owned and resided in their home on both January 2, 2010, and January 2, 2011. There is no limit on household income to be eligible under this program. The special property tax refund form is also available from the Minnesota Department of Revenue (DOR) and also must be filed with the DOR by August 15, 2012.
Additional information on above programs
All information about these programs can be found on Minnesota Department of Revenue (DOR) Web site or by calling DOR’s tax help line at 651.296.3781.
The Minnesota House of Representatives Research Office provides some additional information about the state’s programs on its Web site, including information on the homeowners property tax refund program, renters property tax refund program and special property tax refund program
Senior citizens property tax deferral program
The senior citizens property tax deferral program allows people 65 years of age or older, whose household incomes are $60,000 or less, to defer a portion of their property taxes on their homes. The program limits the amount of property taxes to three percent of the total household income for eligible property owners, and the amount of taxes to be paid each year will not change for as long as the homeowner participates in the program.
However, this is not a tax forgiveness program—it is a low interest loan from the state. The deferred tax is paid by the state to the county, and a lien will attach to your property. Annually adjusted interest will be charged on the loan, but will never exceed five percent. Application forms are available from the Minnesota Department of Revenue, and must be filed with the Hennepin County Auditor’s Office by July 1 the year before the deferral would begin. The Minnesota Department of Revenue has full information available by calling 651.556.6088 or by visiting its site and going to the Senior Citizens Property Tax Deferral Program page.
Foreclosure prevention counseling
The city of Minnetonka provides foreclosure prevention counseling through Community Action Partnership of Suburban Hennepin County. Call 952.933.1993 for information.
