Dear neighbors,
The deadline for homeowners and renters to apply for a property tax refund is today, Thursday, August 15.
You can complete your application online or by mail. While the deadline to file is August 15, homeowners and renters have an additional one year grace period to claim a refund for 2013.
To find out if you qualify for a property tax refund, or to complete your application online, visit the Minnesota Department of Revenue’s website
here.
Property tax relief was a major priority this session, and we approved over $400 million in middle-class property tax relief for Minnesotans through the Homestead Credit Refund (beginning in 2014), expanded renters’ credit and increased aid to counties, cities and townships.
As many of you know, the GOP-controlled legislature eliminated the Market Value Homestead Credit Refund in 2011, driving up property taxes by over $330 million statewide. To replace this gap in direct property tax relief, we created the Homestead Credit Refund this session, which will go into effect next year.
In 2014:
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More than 300,000 homeowners (75% of filers) will see an average refund increase of $212
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More than 137,000 additional homeowners will be eligible for a refund
In addition to homeowners, renters will see increased relief through the Renters’ Credit.
Under the expanded credit:
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66,000 filers will see a bigger refund
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10,000 additional renters will qualify
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The average renter will see their refund increase by $179
This direct property tax relief is complemented by a Local Government Aid (LGA) increase and a sales tax exemption for local governments. These changes are projected to reduce local government expenses by an estimated $172 million across the state, with the intention of reducing local burdens on property taxpayers. In fact, Mayor Coleman announced his budget this week, which includes no property tax levy increases.
The Minnesota Department of Revenue recently released information showing property taxes are projected to decrease for the first time since 2002, due to the changes I’ve mentioned. These measures are projected to reduce property taxes next year by $121 million.
If you have any questions about your property tax refund, or the changes recently enacted by the legislature, please contact me. I appreciate hearing from you.
Sincerely,
John Lesch
State Representative