Variations in Receipt of Benefit
No Variation in Receipt of Benefits
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
Eligible Property Type
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.
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 liens 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.
https://www.lyonco.org/home/showpublisheddocument/4931/63707336131220000 Deferral Program Accessed 10/18/2021] View Archived Source
Minnesota Department of Revenue Senior Citizens Property Tax Deferral Application
[https://www.revenue.state.mn.us/sites/default/files/2020-04/crscd_20.pdf Accessed 10/18/2021]
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 10/18/2021]
View Archived Source
[https://www.revenue.state.mn.us/property-tax-deferral-senior-citizens Accessed 10/18/2021]