Each year, many Minnesota homeowners and renters don't file for property tax relief that they have coming to them. One of the reasons for this is that there are several programs and criteria and tax filers get confused.
To apply for the refund, complete Form M1PR from the Minnesota Department of Revenue. This form is available at public libraries and at other locations where state tax forms are distributed. It can also be found at the Minnesota Department of Revenue website at: www.taxes.state.mn.us/taxes/prop_refund/forms.shtml .
For taxpayers filing for a property tax refund this spring, the Department of Revenue recommends that M1PR forms be submitted by August 16, 2010. However, taxpayers may file for their refund through Aug. 15, 2011.
To qualify for a property tax refund, you must be a full-year or part-year Minnesota resident, and you cannot be a dependent. If you are a homeowner, your property must be your homestead. If you are a renter, you must live in a building on which property taxes are paid. Also, only one refund per property -- so if you have a relative living in a separate house on the same property, only one can qualify for a refund.
You may be eligible for a property tax refund under one of these programs:
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- Special Property Tax Refund
You may be eligible if you are a homeowner, owned your home on both Jan. 2, 2009 and Jan. 2, 2010, and the net property tax on your homestead increased by more than 12 percent and at least $100 from 2009 to 2010. The increase cannot be due to improvements to your home. This refund does not depend on your income.
- Homeowner and Renter Property Tax Refund Programs
You may be eligible if you are a homeowner and have a household income of $98,290 or less, or you are a renter and have a household income of $53,030 or less. Higher income limits apply if you have dependents or if you are a senior citizen or disabled. Your refund will depend on how high your property taxes or rent is relative to your income. The maximum refund for homeowners is $2,350, and $1,510 for renters.
If you are 65 years or older and a property owner, you may also be eligible for the Senior Citizens Property Tax Deferral Program.
The Senior Citizens Property Tax Deferral Program allows property taxpayers who are 65 years or older to defer a portion of their homestead property taxes until a later time. In this program, the taxpayer pays only 3 percent of the preceding year's household income as property tax and the rest of the property tax is deferred. Taxpayers are still allowed to file for a property tax refund and any other property refunds the state may offer. However, the amount of any refunds will be applied to the deferred property tax amount.
In order to qualify for this program, all of the following criteria must be met:
- The property must be owned and occupied as a homestead by a person 65 years or older. If married, one spouse must be 65 and the other must be at least 62 years of age.
- Total household income must be $60,000 or less for the calendar year preceding the year of the initial application.
- The home must have been owned and occupied by one of the homeowners for at least 15 years before the initial application.
- There must be no state or federal tax liens or judgment liens on the property.
- The total unpaid balances of debts secured by mortgages and other liens on the property, including deferred tax and interest amounts under the program, unpaid and delinquent special assessments and property taxes, penalties and interest (but excluding the current year's property taxes), do not exceed 75 percent of the assessor's estimated market value for the current year.
If you have questions, you can call the Department of Revenue at (651) 296-3781, or e-mail a question to indinctax@state.mn.us .
