Minnesota unveils major changes to property tax relief programs

During a recent government meeting, representatives from the Minnesota Department of Revenue presented significant updates regarding property tax relief programs, aimed at assisting renters, seniors, and veterans. Safia Farah, the Somali outreach coordinator, and Meiko Yang, the Asian outreach coordinator, outlined the changes that will take effect in the upcoming 2025 tax filing season.

One of the most notable changes is the restructuring of the renter's property tax refund process. Starting January 2025, renters will claim the renter's credit on the Minnesota individual income tax return (Form M1), rather than the previous Form M1PR. This shift means that even those not required to file based on income must do so to receive the credit. The credit will now be calculated using adjusted gross income, which excludes certain non-taxable income, and renters will need to obtain a Certificate of Rent Paid (CRP) from their property owners by January 31st.

Homeowners will also see changes, as the homestead credit will be the only property tax refund available for homeowners starting with the 2024 tax year. The process has been simplified by removing the special refund worksheet, which was rarely used, and introducing a new schedule for special refunds based on property tax increases.

Additionally, the Senior Property Tax Deferral Program allows seniors aged 65 and older to defer a portion of their property taxes, provided they meet specific income and residency criteria. The program requires that the property has been homesteaded for at least five years and does not have a reverse mortgage.

Veterans with disabilities can benefit from the Market Value Exclusion program, which reduces the taxable value of their homes. Eligibility is based on service-connected disabilities and other criteria, including documentation from the U.S. Department of Veterans Affairs.

The presenters emphasized the importance of timely applications and the need for residents to familiarize themselves with the new processes to ensure they receive the benefits available to them. The meeting concluded with a call for residents to visit the Minnesota Department of Revenue's website for further resources and assistance.