What Is Changing?
You may have heard of changes to the Homestead Market Value Credit Program. The Market Value Homestead Credit is being replaced with the “HOMESTEAD MARKET VALUE EXCLUSION.” The exclusion reduces the taxable value of qualifying homesteads. Despite the decreased taxable value, taxes will increase on “non-homesteaded properties” – (most properties including apartments and businesses) and is independent of any action taken by local governments.
Why Is It Changing?
The state was facing a $5 billion deficit. The elimination of the homestead market value credit saves the state $261 million. Local governments cannot undo this state law change.
Additional Resources for Homeowners?
Affected homeowners with household incomes below $100,780 or whose property taxes increase by more than 12% or $100 (whichever is greater) may apply for the state’s property tax refund and, if qualified, will get some of the increase refunded.
The form to apply for the state’s property tax refund is the M1PR, available at: http://taxes.state.mn.us/pages/current_forms.aspx