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Major State Aids & Taxes: Miscellaneous Property Tax Credits

Payable 2013 Miscellaneous Credits: $25.4 million

The total of the miscellaneous property tax credits for 2013 is $25.4 million. This includes the taconite homestead credit, disparity reduction credit, power line credit, agricultural preserves credit, county conservation credit, disaster credits, and the bovine tuberculosis credit. A statewide breakdown of these miscellaneous credits is shown below.

Type of Credit Amount
Taconite Homestead Credit $16,624,940
Disparity Reduction Credit* 6,801,011
Power Line Credit 97,145
Agricultural Preserves Credit 831,769
County Conservation Credit 197,631
State Disaster Credit 590,725
Local Option Disaster Credit 261,403
Total $25,404,624

The taconite homestead credit is the largest of the miscellaneous credits. Homeowners in the taconite tax relief areas, located in northern Minnesota on the Iron Range, receive a credit of either 57 percent, capped at $289.80 per homestead, or 66 percent of the net tax, capped at $315.10 per household. The percentage of relief depends upon certain characteristics of the local jurisdiction, such as the value of the iron ore in the district, proximity to mines, etc. About two-thirds of the credit, $11.4 million, is paid from proceeds of the taconite production tax, while $5.3 million is paid from the state general fund. The portion paid from the general fund is referred to as the supplemental homestead credit. The mobile home taconite homestead credit and any adjustment amounts for the prior years are not included in the amounts shown.

The disparity reduction credit provides additional property tax relief in the border cities of Breckenridge, Dilworth, East Grand Forks, and Moorhead. The credit applies to apartments, commercial-industrial, and public utility property only. The credit is the amount by which the net tax exceeds a 2.3 percent of market value for affected properties.

Miscellaneous Property Tax Credits: Payable 2013
Amount
(thousands)
Percent of
Total
Northern Regions Northwest (1)
Headwaters (2)
Arrowhead (3)
West Central (4)
Five (5)
East Central (7E)
$1,035
2
16,252
5,782
1,178
78
4.1%
0.0
64.0
22.8
4.6
0.3
Southern Regions Six East (6E)
Upper MN Valley (6W)
Central MN (7W)
Southwest (8)
Nine (9)
Southeastern MN (10)
7
0
39
0
123
61
0.0
0.0
0.2
0.0
0.5
0.2
Total Nonmetro $24,557 96.7%
Metro Region Hennepin County
Ramsey County
Remaining Metro
140
0
708
0.6
0.0
2.8
Total Metro $848 3.3%
State Total $25,405 100.0%

A county breakdown of the taconite homestead credit is shown below.

County Taconite Credit
Aitkin $914,766
Cook 526,762
Crow Wing 1,169,923
Itasca 4,252,716
Koochiching 4,705
Lake 1,143,062
St. Louis 8,613,006
Total $16,624,940

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March 2017

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