According to a non-partisan report from House Research, property taxes statewide are projected to decrease by $49 million in 2014. While only an estimate, the report shows that one-time increases in several tax credits will have an immediate effect for taxpayers this year. With the funding increase for these credits, as well as investments made in local government aid from last year, property taxes will see their first decrease since 2002.
Although the projections for 2014 show a decrease, preliminary projections for 2015 suggest property taxes may slightly increase. The estimated increase of rates for 2015 reflects statewide construction levies that account for much of the projected increase. Taxpayers have time to talk to their local officials if they’d like to see lower levies in 2015.
Senate Taxes Committee member, Senator Lyle Koenen (DFL-Clara City) is pleased to see the legislature’s work have an effect, and is hoping more work can be done to decrease property tax rates further.
“Due to budget cuts in the past decade, property tax rates have gone up 84% (since 2002), a hardship felt across the state especially in our rural communities,” said Sen. Koenen. “This is a major burden on homeowners and businesses but has hit our farmers worst; farmers have seen a rapid increase in land values, creating a huge increase in property taxes. This years’ relief will begin to take some of the pressure off but we must be working to find ways to lower property taxes.”
One-time increases were passed in 2014 for the Homeowner Property Tax Refund, Renters’ Property Tax Refund, and Agricultural Market Value Credit. Below is more information on how people can take advantage of these property tax relief measures:
• Homeowner Property Tax Refund: Homeowners may go to the Department of Revenue’s website to file an M1PR form and find other information: www.taxes.state.mn.us or 651-296-3781/800-652-9094. That also includes a ‘Where’s My Refund?’ link to track refund status. The deadline to apply is August 15.
• Renters’ Property Tax Refund: Renters may go to the Department of Revenue’s website to file an M1PR form and find other information: www.taxes.state.mn.us or 651-296-3781/800-652-9094. That also includes a ‘Where’s My Refund?’ link to track refund status. The deadline to apply is August 15.
• Agricultural Homestead Market Value Credit: A one-time, maximum $205 supplement will automatically be paid to all farmers receiving the credit in 2014.
For information on this or any legislation, please contact Sen. Lyle Koenen at 651-296-5094 or by email at email@example.com.