Deferral for Senior Citizens

State

Minnesota

Year

2015

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

By enrolling in the deferment program, eligible taxpayers are required to pay only 3% of their household income towards property taxes on the homestead, including 1 acre of land, in a given tax year. The state places a lien against the property for the amount deferred. It must be repaid with interest to the state and will be subject to an interest rate not to exceed 5%. The maximum amount of property tax that can be deferred is 75% of the assessor's estimated market value for the property minus the balance of any loans against the property at the time of application. Deferral applications must be submitted on or before July 1 to defer a portion of the taxes owed in the next year. The taxpayer may first apply in the year they turn 65 but will not receive a deferral until the following year. The lien is reduced by any state payments to the property owner. This includes income tax refunds, lottery winnings, or political contribution refunds.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Other Criteria

Description of Eligibility Criteria

Eligible applicants must occupy the homestead property as a primary residence. In addition, they must: (1) have a total household income of under $60,000; (2) have owned and occupied the homestead for at least 15 years prior to the initial application; (3) not have state of federal tax liens on the homestead property; (4) not have mortgages or other liens on the property that secure future advances; and (5) have the total unpaid balances of debts secured by mortgages or other liens under 75% of the assessor’s estimated market value for the year. For married households, one spouse must be at least 65 years old, and the other spouse must be at least 62 years old. For unmarried households, the qualifying taxpayer must be at least 65 years old.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state pays counties the amount of the deferred property tax revenue each year.

Record ID

MN104_RR15

Footnotes

Sources

Minn. Stat. § 290B.01 ~ § 290B.10 (in effect for 2015)

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