Menu

House Research Navigation

Print Twitter RSS Email

Legislature > House of Representatives > House Research > Taxes > Major State Aids & Taxes

Major State Aids & Taxes: Miscellaneous Property Tax Credits

Payable 2014 Miscellaneous Credits: $26.6 million

The total of the miscellaneous property tax credits for 2014 is $26.6 million. This includes the taconite homestead credit, disparity reduction credit, power line credit, agricultural preserves credit, county conservation credit, and disaster credits. A statewide breakdown of these miscellaneous credits is shown below.

Type of Credit Amount
Taconite Homestead Credit $16,578,792
Disparity Reduction Credit* 8,653,247
Power Line Credit 157,680
Agricultural Preserves Credit 974,089
County Conservation Credit 195,070
State Disaster Credit 0
Local Option Disaster Credit 0
Total $26,558,878

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 of the net tax, 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, $11.3 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 1.9 percent of market value for affected properties.

Miscellaneous Property Tax Credits: Payable 2014
Amount
(thousands)
Percent of
Total
Northern Regions Northwest (1)
Headwaters (2)
Arrowhead (3)
West Central (4)
Five (5)
East Central (7E)
$1,223
9
15,428
7,448
1,166
23
4.6%
0.0
58.1
28.0
4.4
0.1
Southern Regions Six East (6E)
Upper MN Valley (6W)
Central MN (7W)
Southwest (8)
Nine (9)
Southeastern MN (10)
7
0
80
0
122
60
0.0
0.0
0.3
0.0
0.5
0.2
Total Nonmetro $25,565 96.3%
Metro Region Hennepin County
Ramsey County
Remaining Metro
186
0
1
0.7
0.0
0.0
Total Metro $994 3.7%
State Total $26,559 100.0%

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

County Taconite Credit
Aitkin $920,849
Cook 527,896
Crow Wing 1,164,998
Itasca 4,284,316
Koochiching 4,851
Lake 1,133,143
St. Louis 8,542,739
Total $16,578,792

Jump to top

December 2017

House Research Department  ♦  600 State Office Building, Saint Paul, MN  55155  ♦  House.Research@house.mn  ♦  651-296-6753