Friends,
As you know, property tax reform was one of our top priorities last year. Because of what we accomplished, for the first time in 10 years, overall property taxes in the state are going down.
That means you may qualify for a property tax refund this year, even though you haven't in the past. I wanted to point two specific refund programs you should be aware of when doing your taxes this year.
The Homeowner and Renter Property Tax Refund Program is available to homeowners with household incomes less than $105,5000 or renters with household incomes less than $57,170. Higher income limits apply if property owners or renters have dependents or are senior citizens or disabled. The refund will depend on how high property taxes or rent were, relative to income.
The maximum refund for homeowners is $2,580, and the maximum refund for renters is $2,000. Renters will need a Certificate of Rent paid from their landlord or a Rent Paid Affidavit.
The other program is the Special Property Tax Refund. Homeowners might be eligible if they owned a home on both January 2, 2013, and January 2, 2014, and the net property tax on that homestead increased by more than 12 percent and at least $100 from 2013 to 2014. The increase cannot be due to improvements to the home. This refund is not dependent on level of income.
To qualify for these property tax refunds, one must be a full-year or part-year Minnesota resident and cannot be claimed as a dependent on anyone else’s taxes. Homeowners must have owned and lived in the home on January 2, 2014, and the property must be their homestead. Renters must have lived in a building on which property taxes are paid.
Relative homesteads do not qualify.
Property owners who are 65 or older may also be eligible for the Senior Citizens Property Tax Deferral Program. This program will allow property taxpayers to defer a portion of their homestead property taxes until a later date. The taxpayer pays only 3 percent of the preceding year’s household income as property tax, and the rest of the tax is deferred. Taxpayers are still allowed to file for their property tax refund and any other property refunds the state offers, however the amount of any refund will be applied to the deferred property tax balance.
To apply for a refund, complete Form M1PR. It 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.revenue.state.mn.us/forms_and_instructions/m1pr_13.pdf.
To apply for the Senior Citizens Property Tax Deferral Program, a person must fill out an application, which are available in the county auditor’s office or may be obtained from the Minnesota Department of Revenue website at www.revenue.state.mn.us.
School lunches for all students
The Minnesota House unanimously passed a bill that guarantees all kids receive a hot school lunch, regardless of their ability to pay.
We tried to pass this bill last year but ran into some roadblocks. But the Mid-Minnesota Legal Aid report that was issued last month –– detailing the extent to which state school districts are turning away kids who cannot afford lunch –– opened everyone's eyes.
I've always said that kids shouldn't be punished for circumstances beyond their control. This bill makes sure they won't.
Have a great weekend and Happy St. Patrick’s Day,
“Sheldon O’Johnson”