Minnesota Property Tax Refund and Certificates of Rent Paid Changes for 2024: What Homeowners and Landlords Need to Know

Property Tax Refund Changes

In May 2024, Minnesota passed a tax law that enhances benefits to homeowners and renters’ property tax refund program. As we discussed in a previously published blog, Minnesota has significantly adjusted its property tax refund system to provide greater relief. These new updates further expand eligibility and increase refund amounts, ensuring more Minnesotans can benefit from these financial relief programs.

Minnesota continues to offer homeowners and renters a refundable tax credit based on their income level and the amount of property tax or rent paid. This credit is referred to as the regular property tax refund.

In addition to the regular refund, homeowners can claim an extra refund if their property taxes increase significantly from one year to the next. This is known as the special property tax refund.

Key Changes in 2024:

The May 2024 law introduced several key adjustments:

• Increased Refund Amount: The regular property tax refund has been increased by approximately 20%. This boost is available to both homeowners and renters. While the income threshold to qualify remains the same, those eligible can now expect a larger refund.
• Renters Claiming the Refund: This law also changed the method for renters to claim the refund. Beginning with 2024 filings, renter’s will claim this credit on their 2024 MN Individual Income Tax return so no separate filing will be needed to claim the Renters Credit.

These changes are designed to provide additional financial relief, helping more Minnesotans benefit from the state’s property tax refund program.

Action Steps and Filing Deadlines:

Your next steps depend on whether you’ve filed for a property tax refund and your eligibility status. Below are the recommendations based on common scenarios:

• Renters Filing: If you filed as a renter before June 14, 2024, you do not need to take any further action. The Minnesota Department of Revenue will automatically apply the 20% increase to your refund and send it to you.
• Homeowners with Special Property Tax Refund Claims: If you filed as a homeowner and already claimed the special property tax refund before June 14, 2024, no additional steps are required. The Department of Revenue will increase your regular property tax refund by 20% and recalculate your special refund.
• Homeowners Now Eligible for Special Property Tax Refund: If you filed as a homeowner but didn’t qualify for the special refund under the pre-change rules, and now qualify due to the reduced 6% threshold, you will need to file an amended form to claim the special property tax refund.
• Homeowners Not Eligible for Special Refund: If you filed as a homeowner and did not qualify for either the pre-change or post-change special property tax refund, you will still receive an automatic 20% increase in your regular refund.

Filing Deadlines and Forms:

Although the 2023 credit claim was due August 15, 2024, you are granted additional time of one year to claim the refund. So, if you didn’t file by August 15, 2024, you are allowed to file the 2023 claim until August 15, 2025. Be sure to use the updated forms that incorporate the new changes from the May 2024 law when filing.

Certificates of Rent Paid (CRP) Law Change:

At the beginning of 2024, Minnesota law required landlords to submit Certificates of Rent Paid (CRPs) electronically through the Department of Revenue’s online system. The aim of the new mandate was to streamline the process and reduce errors; however, it also means that landlords must be prepared to comply with new digital submission requirements.

Key Deadlines for Landlords:

• January 31, 2024: The deadline to provide CRPs to tenants remains the same, but landlords must also submit CRPs electronically to the Minnesota Department of Revenue.

• Failure to Comply: Failing to provide CRPs or submitting them late can result in fines and penalties.

How to Submit CRPs Electronically:

Landlords are now required to create and submit CRPs through the state’s online system. Here’s how:

1. Access the Minnesota Department of Revenue CRP System: Visit the Department of Revenue’s CRP page.
2. Enter Tenant Information: You’ll need to input the necessary details for each tenant, including the total rent paid and the amount used for property taxes.
3. Generate and Submit CRPs: Once the form is complete, submit it electronically to the Department of Revenue. You must still provide your tenants a physical or digital copy by the January 31 deadline.

Compliance Tips for Landlords:

1. Start Early: Gather rent payment information and property tax details well before the deadline to ensure smooth electronic submission.
2. Use the Electronic System Efficiently: Familiarize yourself with the online system to avoid technical difficulties. For the latest information, consider subscribing to the Minnesota Department of Revenue’s CRP email updates.
3. Maintain Accurate Records: Keep digital and physical records of all submitted CRPs for future reference.
4. Stay Organized: Missing the electronic submission deadline could result in penalties, so it’s essential to stay on top of the new requirements.

By following these updated requirements, landlords can ensure compliance with Minnesota’s new CRP rules and avoid potential penalties for non-compliance.

Understanding the Changes:

Minnesota’s 2024 property tax refund and CRP law changes offer significant benefits to homeowners and renters, but they also come with new requirements—especially for landlords. By understanding the increased refund amounts, lower thresholds for the special property tax refund, and the mandatory electronic submission of CRPs, you can ensure you’re fully compliant and maximizing the available benefits.

Whether you’re a homeowner looking to take advantage of the 20% refund increase, a renter filing for a property tax refund with your CRP, or a landlord adjusting to new digital requirements, staying informed and acting before key deadlines is essential.

If you have any questions about these updates or need assistance filing your property tax refund, don’t hesitate to contact us. We’re here to help you navigate these changes and secure the maximum refund possible under Minnesota law.