General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMinnesota's Property Tax Refund Program
This morning, I was gratified to find a check from the MN Treasury Department in my mailbox. Like most homeowners, property taxes are a necessary evil for our household. Those taxes pay for schools, roads, street lighting, libraries, parks and a host of other amenities we all can use in our city. Property taxes, however, tend to be somewhat regressive in nature, especially for people with low or fixed incomes who own homes, despite the difficulty of doing so. Many older people own homes outright after years of paying off a mortgage, but now are living on diminished, fixed incomes, for example.
Minnesota has a program, however, that moderates that regressive effect. I admit that I do not understand the formula that is used to do the calculation, but the state provides refunds on part of property taxes to certain taxpayers. The percentage refunded of paid property taxes is based on the income of property owners. The less income you have, the more of your property tax payments are refunded.
This program is especially helpful to people on fixed incomes or people whose income has decreased for whatever reason. Again, I don't understand the entire formula, but that check can be very useful to people who find it difficult to pay their property taxes, especially in cities like St. Paul, where I live. Renters, too, also get some sort of refund through this program, but I don't know how much or how it is calculated.
Anyhow, that check was very welcome and timely just now. It's a good program that helps many people subject to a regressive property tax system.
So, I wonder: Does your state have any similar system that helps balance the property tax equation?
boguspotus
(286 posts)Almost $500 - pretty nice thing to get. We can really use it.
MineralMan
(146,317 posts)time. Of course, maybe it's always the right time to get some extra money, now that I think about it.
jonno99
(2,620 posts)MineralMan
(146,317 posts)the checks sent out. People have been complaining lately.
leftofcool
(19,460 posts)Once we turned 65, 34k came of the value of our house which lowered our property taxes by 400.00. It would be nice to get a rebate though.What is sad is that our property taxes are lower than our home owners insurance.
MineralMan
(146,317 posts)The formula is complicated, and I don't understand it. I just let TurboTax fill out the form and I send it in. I know I get a state income tax break for being over 65, as I do on the Federal income tax.
Frankly, though, I don't think it really compensates very well for being older than the proverbial dirt.
meow2u3
(24,764 posts)But that's only for low-income seniors, widow(er)s 50 or older, or people under 65 with disabilities.
http://www.revenue.pa.gov/generaltaxinformation/propertytaxrentrebateprogram/pages/default.aspx#.Vj58eeLF8x0