ST. PAUL, Minn - Many Minnesota homeowners and renters would see their property tax refunds increased under a bill carried by Rep. Laurie Pryor (DFL – Minnetonka). HF 1566, considered by the Property Tax and Local Government Finance division Wednesday, would increase the maximum refund from available under the homestead credit from $2,710 to $3,000. It would also the maximum amount under the renter’s credit from $2,100 to $3,000.
“Both the homestead credit and the renter’s credit are proven programs to help families with high property taxes relative to their incomes,” Rep. Pryor said. “As we look toward potential tax cuts for Minnesotans this year, I think it’s important that we target them to the working families in our communities struggling with property tax burdens, and this bill does exactly that.”
The homestead credit provides a refund equal to a percentage of property taxes paid over a threshold of income. Under the bill, the maximum refunds received would increase between $160 and $810 depending on income level.
The property tax refund for renters – commonly referred to as the “renter’s credit,” – provides tax relief to renters whose property taxes are high relative to their incomes. Their share of property taxes is calculated to equal 17 percent of rent paid. HF 1566 increases the maximum refund under this credit for those earning about $57,000 or less annually, with the highest increase in credit targeted toward those with income under $29,000.
The bill was “laid over” for possible inclusion in a larger package of property tax legislation later this session.
Rep. Pryor encourages constituents to reach out to her about any issue. She can be reached by email at firstname.lastname@example.org or by phone at 651-296-3964, and encourages constituents to sign up for periodic email updates at her House website, located at www.house.mn/48a.