Deferral for Senior Citizens

State

Minnesota

Year

2019

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 homestead property taxes 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 1 November 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. As long as the applicant remains eligible for the deferral, no subsequent annual applications are required. 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

Eligible property are homesteads, defined as the homeowner's principal residence and a maximum of 1 acre of surrounding land. Any land in excess of 1 acre is not included.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Other Criteria

Description of Eligibility Criteria

In order to qualify, the applicant must meet all of the following requirements. (1) The homeowner must be 65 or older and own and occupy the property as a homestead. If married, the applicant's spouse must be at least 62 years old when the first deferral is granted. (2) The total household income cannot exceed $60,000 in the year prior to the year of first application to the program. (3) At least one of the owners of the homestead must have owned and occupied the property for at least 15 years prior to first application. (4) There must be no state or federal tax leans or judgement liens against the property. (5) The total amount of debt including mortgages and liens against the property may not be more than 75% of the estimated market value of the property. Homes with reverse mortgages are not eligible.

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_RR19

Footnotes

Effective for applications submitted in 2019, the application date has been changed from 1 July to 1 November. This was enacted in 2019 Minn. Laws ch. 6 § 4-26 This program is optional for qualifying seniors. If a homeowner elects to participate, a lien will be placed against the property by the state for the amount of property taxes deferred, which must be repaid to the state with interest. Deferred property taxes must be repaid when any of the following occurs: (1) The property is sold or transferred (2) All qualifying homeowners die (3) The homeowner voluntarily removes himself/herself from the program (4) The property no longer qualifies as a homestead If the annual household income of the applicant exceeds $60,000 in any given year, the homeowner is obligated to inform the Department of Revenue and may not defer any property taxes that year. Failure to do this will result in the application of a penalty.

Sources

Minn. Stat. § 290B.01 ~ § 290B.10 (in effect for 2019)
Minnesota Department of Revenue Fact Sheet for Senior Citizens Property Tax Deferral Program
[http://www.revenue.state.mn.us/propertytax/factsheets/factsheet_07.pdf Accessed 10/09/2018] View Archived Source

Minnesota Department of Revenue Senior Citizens Property Tax Deferral Application
[http://www.revenue.state.mn.us/Forms_and_Instructions/crscd.pdf Accessed 10/09/2018]
View Archived Source

Minnesota Department of Revenue Senior Citizens Property Tax Deferral Program (2019)
[https://www.house.leg.state.mn.us/hrd/pubs/ss/ssscptdp.pdf Accessed 12/21/2020]
View Archived Source
Minnesota Department of Revenue Senior Citizens Property Tax Deferral Program [http://www.revenue.state.mn.us/individuals/prop_tax_refund/Pages/Senior_Citizens_Property_Tax_Deferral_Program.aspx Accessed 10/09/2018] View Archived Source
2019 Minn. Laws ch. 6 § 4-26

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