New property tax refunds worth up to $3,590 could be on the way for low income households.
Thousands of low income families in Minnesota may see these property tax refunds.
Why is this happening?
The proposals come as inflation hit new highs in February causing stress on household budgets. Click here to read more.
It is not a great time to buy a house, as housing prices continue to increase, which means property taxes are rising too.
Property taxes in Minnesota are administered at the county level. The state lawmakers are working to boost their property tax refund.
One House bill would increase the maximum refund by $500 for all income ranges that are eligible for that refund. This would push the income cap to receive a refund up to $155,000 from its current $126,290.
The bill would also increase the exemption amount for claimants who are seniors or have a disability. State Representative Kristin Bahner said: “This bill has three main goals, to help our seniors age in place, to help with the expenses of a growing young family, and to help those with disabilities to stay in their homes, where they feel stable and independent.”
Here is a breakdown
Household incomes under $46,720, the maximum refund would increase from $3,090 to $3,590.
Households with incomes over $126,290 are currently ineligible for refunds. With this new bill their maximum refund would top out at $350 for household incomes of $155,000.
There are some differences with proposal two:
This bill is similar in that it will increase the maximum refund, but it will be only by $300 and not $500. It would cap refund eligibility at $126,290.
State Representative Cheryl Youakim said: “I know a lot of members have been receiving emails from constituents asking for a little bit of help with their property taxes. This bill is a good place to start.”
Both of these bill proposals are still in their early stages. Once passed it will move to the State Senate for revisions and approval.