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Homestead Credit Program Changes
2012 Changes to the Homestead Credit Program
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
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
Addditonal Information on the Homstead Credit Program Changes
Information from the State of MN on the Homestead Credit Program Changes
IMPORTANT PROPERTY TAX LAW CHANGE
2011 Law Change: A New Homestead Market Value Exclusion replaces the Homestead Market Value Credit
The 2011 Legislature repealed the Homestead Residential Market Value Credit and replaced it with a new program called the Homestead Market Value Exclusion. This change is impacting the property taxes on all homesteaded and non-homesteaded property for Pay 2012.
Follow this Link for additional Information on the law change MN Dept of Revenue Report on Law Change
2011 Law Change: A New Homestead Market Value Exclusion replaces the Homestead Market Value Credit
The 2011 Legislature repealed the Homestead Residential Market Value Credit and replaced it with a new program called the Homestead Market Value Exclusion. This change is impacting the property taxes on all homesteaded and non-homesteaded property for Pay 2012.
Follow this Link for additional Information on the law change MN Dept of Revenue Report on Law Change