New Minnesota Law Changes: The Property Tax Refund for Homeowners and Renters

Minnesota recently passed a new tax law in May, bringing about changes and increased benefits to the property tax refund for homeowners and renters.

Currently, Minnesota provides a refundable tax credit to homeowners and renters based on their income level and the amount of property tax or rent paid. This is known as the regular property tax refund.

Additionally, homeowners have the opportunity to claim a credit if their property tax increased by a certain amount from 2022 to 2023, referred to as the special property tax refund.

Under the new law, the regular property tax refund has been increased by approximately 20%. It’s important to note that the income threshold remains unchanged; however, eligible individuals can now expect a 20% higher refund.

Prior to the recent changes, homeowners were required to experience a property tax increase of more than 12% from 2022 to 2023 to qualify for the special property tax refund. The new law has reduced this threshold to just 6%, making it easier for homeowners to be eligible for the special property tax refund.

In essence, these changes to the tax law expand the potential refund for both homeowners and renters.

Action Required

The necessary actions depend on whether you filed for the property tax refund before June 14, 2023. Here are recommendations based on the various situations.

1. Renter Filing: If you filed as renters before June 14, 2023, you don’t need to take any further action. The Minnesota Department of Revenue will automatically increase your refund by 20% and send it to you.
2. Homeowner with Special Property Tax Refund Claim: If you filed as homeowners and claimed the special property tax refund before June 14, 2023, you need not take any additional steps. The Department of Revenue will increase your regular property tax refund by 20%, recalculate the special property tax refund, and send the refund automatically.
3. Homeowner Eligible for Post-Change Special Property Tax Refund: If you filed as homeowners but didn’t qualify for the pre-change special property tax refund, yet now qualify for the post-change special property tax refund, you must file an amended form to calculate the special property tax refund.
4. Homeowner Not Eligible for Special Property Tax Refund: If you filed as homeowners and do not qualify for the pre-change or post-change special property tax refund, your refund will automatically increase by 20% by the Department of Revenue.

The original due date for filing the property tax refund is August 15. If you still need to file, make sure you use the updated forms that incorporate the changes implemented under the new law.

If you have questions, please reach out by completing the Contact Us form and we will get back to you.