Looking for a break? A big one is here for homeowners and renters of Northern Minnesota. On top of local government aid funds coming in, property tax relief is available for lower- and middle-income households.
When local government aid was cut, property taxes were raised. State aids and credits to Bemidji were cut 48 percent over the last decade, according to Minnesota 2020. But thanks to the 2013 Tax Act, state aid will increase along with a big credit refund on property taxes. This is the first time in 12 years Minnesota property taxes are declining, but to get the tax relief residents must apply for the rebate.
Matt Entenza, founder of Minnesota 2020, says homeowners in Bemidji would see an 18 percent tax reduction–that’s about a $220 decline for a typical homeowner. The deadline to file for both the homeowner and renters’ credit is August 15th.
The credits are available to anyone who pays state property taxes and made $105-thousand or less last year. Applications are available at the library or on the Department of Revenue’s website.