Minnesota seniors needing property tax relief who qualify for the Senior Property Tax Deferral Program will have a tax lien placed on their property and they or their heirs will be required to repay the deferred amount with interest and fees before they can transfer title of the property.
The program limits the maximum amount of property tax seniors pay to 3 percent of total household income. It also provides predictability in that the amount of tax paid will not change while participating in the program.
In order to qualify for the “Minnesota Senior Property Tax Deferral Program” all of the following must be met: . The property must be owned and occupied as a homestead by a person 65 years of age or older. In the case of a married couple, one spouse must be at least 65, and the other spouse must be at least 62, when the first deferral is granted. . The home may be residential, agricultural, or part of a multi-unit building. . Total household income may not exceed $60,000 for the calendar year preceding the year of initial application. . Home must have been owned and occupied as the homestead of at least one of the homeowners for at least 15 years prior to the year of initial application. . There can be no state or federal tax liens or judgment liens on the property. . Total unpaid debts secured by mortgages and other liens against the property cannot exceed 75 percent of the assessor’s estimated market value of the property.
Seniors may wish to consult with an accountant to determine if the program is suitable for their situation.
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