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
|Taconite Homestead Credit
|Disparity Reduction Credit*
|Power Line Credit
|Agricultural Preserves Credit
|County Conservation Credit
|State Disaster Credit
|Local Option Disaster Credit
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
West Central (4)
East Central (7E)
||Six East (6E)
Upper MN Valley (6W)
Central MN (7W)
Southeastern MN (10)
A county breakdown of the taconite homestead credit is shown below.
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