Cook County News Herald

Big jump in property taxes? A refund may be available




Minnesota has two property tax refund programs for homeowners: a regular one and one for people whose property taxes increased significantly this last year. Regular property tax refund

A regular refund is available to people who homestead their property if their household income is under $99,240 if they have no dependents or under $121,140 if they have dependents (senior or disabled homeowners with five or more dependents have a slightly higher limit).

The maximum refund for 2011 is $2,460. Special property tax refund

A special property tax refund is available to people who owned and lived in the same house on January 2, 2011 and January 2, 2012 and whose net property tax increased by more than 12 percent (and by at least $100) if the increase was not due to improvements on the property.

This refund is available to homeowners of any income level. The maximum amount for this refund is $1,000 in an amount equal to 60 percent of the amount of the increase beyond 12 percent or $100, whichever is higher. Exceptions

These property tax refunds are not available while any delinquent property taxes remain unpaid. They are not available if a homeowner’s property qualifies as a homestead under “relative homestead” status in which the residence is occupied by a relative of the owner rather than the owner.

Elderly homeowners can transfer ownership of their home to a relative or friend but continue to live in it, retaining an ownership interest as a “life estate.” They can still qualify for these property tax refunds regardless of who pays the taxes on the property. Filing for the refunds

The same form, Form M1PR, Minnesota Property Tax Refund, can be used for both refunds. Forms and instructions are available at http:// www.taxes.state.mn.us/prop_ refund/ pages/forms.aspx. Forms can also be requested by calling the Minnesota Department of Revenue’s 24-hour individual income tax automated help line at 1(800)657-3676.



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