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Tax Relief Programs
This page provides information on property tax relief, the criteria necessary to qualify for these programs and contact information.
The Scott County Auditor’s Office and the Minnesota Department of Revenue identified the following three programs that offer either a direct refund or deferment of property taxes.
While the first two programs consist of a refund, the senior program allows eligible senior citizens to postpone paying – or defer – a portion of their homestead property taxes. Senior citizens who elect to participate will only have to pay a tax equal to 3% of their net income. The remaining tax will be paid as a low interest loan by the State of Minnesota. The unpaid tax plus interest becomes a lien on the property which must be satisfied upon sale of the property.
| Regular Property Tax Refund
This is commonly referred to as the “property tax circuit breaker." The 2006 eligibility requirements are:
- Maximum household income of $87,780
- Maximum refund of $1,640
- Simple worksheet completion (nine steps)
- Application is on Minnesota property tax refund form M1PR
Note: It appears this program would provide the greatest potential refund for most qualifying property owners. |
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Special Property Tax Refund
This property tax refund is for people who own and reside in their home on both January 2, 2005 and January 2, 2006 with the following eligibility requirements:
- No income restrictions
- Property tax increase must exceed 12%
- Refund is 60% of the increase above 12%
- Maximum refund of $1,000
- Application is on Minnesota property tax refund form M1PR
Note: This program provides the greatest potential refund for higher income property owners. |
| Senior Citizen Property Tax Deferral Program
The Senior Citizen Property Tax Deferral Program was established to help seniors who have difficulty paying their property taxes. To qualify for this program all of the following qualifications must be met:
- Property owners must be 65 years of age or older
- Property must be homesteaded
- Maximum household income of $60,000
- Property must be owned and occupied for the last 15 years
- Property taxes are limited to 3% of household income
- Application is made by contacting the State of Minnesota at (651)556-6088
There are three inmportant features regarding the interest rate, notification and payment requirements for the Senior Citizen Property Tax Deferral Program:
1. The interest accrues starting September 1 of the payable year that taxes are deferred at an interest rate not to exceed 5%.
2. Annually, on or before July 1, the county auditor must notify, in writing, each participant in the county who is in the Senior Citizen 3. Property Tax Deferral Program if current year’s deferred taxes and the total cumulative deferred taxes and accrued interest on the participant’s property.
3. If a property is sold or transferred, or if the homeowner dies, payment in full is due within 90 days; and if the property ceases to qualify as a homestead or due to income restrictions, the total deferred amount is due within one year of the termination.
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For more information, residents may obtain the Minnesota Property Tax Refund instruction booklet available on the Minnesota Revenue website at www.taxes.state.mn.us or call the department’s 24-hour forms order service at (651)296-4444.
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