Minnesota Statutes 290A.04 – Refund Allowable
Subdivision 1.Refund.
A refund shall be allowed each claimant in the amount that property taxes payable exceed the percentage of the household income of the claimant specified in subdivision 2 in the year for which the taxes were levied as specified in subdivision 2. If the amount of property taxes payable is equal to or less than the percentage of the household income of the claimant specified in subdivision 2 in the year for which the taxes were levied, the claimant shall not be eligible for a state refund pursuant to this section.
Subd. 2.Homeowners; homestead credit refund.
A claimant whose property taxes payable are in excess of the percentage of the household income stated below shall pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the state refund amount shown below.
| Household Income | Percent of Income | Percent Paid by Claimant |
Maximum State Refund |
|
| $0 to 2,079 | 1.0 percent | 12 percent | $ | 3,310 |
| 2,080 to 4,139 | 1.1 percent | 12 percent | $ | 3,310 |
| 4,140 to 6,269 | 1.2 percent | 12 percent | $ | 3,310 |
| 6,270 to 8,369 | 1.3 percent | 17 percent | $ | 3,310 |
| 8,370 to 10,439 | 1.4 percent | 17 percent | $ | 3,310 |
| 10,440 to 14,619 | 1.5 percent | 17 percent | $ | 3,310 |
| 14,620 to 16,689 | 1.6 percent | 17 percent | $ | 3,310 |
| 16,690 to 18,799 | 1.7 percent | 17 percent | $ | 3,310 |
| 18,800 to 20,879 | 1.8 percent | 17 percent | $ | 3,310 |
| 20,880 to 22,949 | 1.9 percent | 22 percent | $ | 3,310 |
| 22,950 to 29,239 | 2.0 percent | 22 percent | $ | 3,310 |
| 29,240 to 31,319 | 2.0 percent | 27 percent | $ | 3,310 |
| 31,320 to 35,509 | 2.0 percent | 27 percent | $ | 3,310 |
| 35,510 to 50,099 | 2.0 percent | 32 percent | $ | 3,310 |
| 50,100 to 73,059 | 2.0 percent | 32 percent | $ | 2,680 |
| 73,060 to 83,499 | 2.0 percent | 37 percent | $ | 2,350 |
| 83,500 to 93,939 | 2.1 percent | 37 percent | $ | 1,940 |
| 93,940 to 104,379 | 2.2 percent | 37 percent | $ | 1,740 |
| 104,380 to 114,819 | 2.3 percent | 37 percent | $ | 1,520 |
| 114,820 to 121,089 | 2.4 percent | 42 percent | $ | 1,280 |
| 121,090 to 125,289 | 2.5 percent | 42 percent | $ | 1,070 |
| 125,290 to 130,349 | 2.5 percent | 47 percent | $ | 870 |
| 130,350 to 135,409 | 2.5 percent | 47 percent | $ | 650 |
The payment made to a claimant shall be the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant’s household income is $135,410 or more.
Subd. 2a.
Terms Used In Minnesota Statutes 290A.04
- Claimant: means a person, other than a dependent, as defined under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a resident of this state as provided in chapter 290 during the calendar year for which the claim for relief was filed. See Minnesota Statutes 290A.03
- Commissioner: means the commissioner of revenue of the state of Minnesota. See Minnesota Statutes 290A.03
- Homestead: means the dwelling occupied as the claimant's principal residence and so much of the land surrounding it, not exceeding ten acres, as is reasonably necessary for use of the dwelling as a home and any other property used for purposes of a homestead as defined in section 273. See Minnesota Statutes 290A.03
- Household: means a claimant and an individual related to the claimant as the claimant's spouse who are domiciled in the same homestead. See Minnesota Statutes 290A.03
- Household income: means all income received by all persons of a household in a calendar year while members of the household, other than income of a dependent. See Minnesota Statutes 290A.03
- Income: means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a solvent individual excluded from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received under the federal Social Security Act, Supplemental Security Income, and veterans benefits), which was not exclusively funded by the claimant or spouse, or which was funded exclusively by the claimant or spouse and which funding payments were excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick pay as a result of accident, sickness, or other disability, whether funded through insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including a qualified voluntary employee contribution; simplified employee pension plan; self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) alimony received to the extent not included in the recipient's income;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code. See Minnesota Statutes 290A.03
- Manufactured home: means homesteads that are manufactured homes as defined in section 273. See Minnesota Statutes 290A.03
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- property taxes payable: includes the amount of the payments directly attributable to the property taxes assessed against the parcel on which the house is located. See Minnesota Statutes 290A.03
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
- Tax: means any fee, charge, exaction, or assessment imposed by a governmental entity on an individual, person, entity, transaction, good, service, or other thing. See Minnesota Statutes 645.44
Terms Used In Minnesota Statutes 290A.04
- Claimant: means a person, other than a dependent, as defined under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a resident of this state as provided in chapter 290 during the calendar year for which the claim for relief was filed. See Minnesota Statutes 290A.03
- Commissioner: means the commissioner of revenue of the state of Minnesota. See Minnesota Statutes 290A.03
- Homestead: means the dwelling occupied as the claimant's principal residence and so much of the land surrounding it, not exceeding ten acres, as is reasonably necessary for use of the dwelling as a home and any other property used for purposes of a homestead as defined in section 273. See Minnesota Statutes 290A.03
- Household: means a claimant and an individual related to the claimant as the claimant's spouse who are domiciled in the same homestead. See Minnesota Statutes 290A.03
- Household income: means all income received by all persons of a household in a calendar year while members of the household, other than income of a dependent. See Minnesota Statutes 290A.03
- Income: means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a solvent individual excluded from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received under the federal Social Security Act, Supplemental Security Income, and veterans benefits), which was not exclusively funded by the claimant or spouse, or which was funded exclusively by the claimant or spouse and which funding payments were excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick pay as a result of accident, sickness, or other disability, whether funded through insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including a qualified voluntary employee contribution; simplified employee pension plan; self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) alimony received to the extent not included in the recipient's income;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code. See Minnesota Statutes 290A.03
- Manufactured home: means homesteads that are manufactured homes as defined in section 273. See Minnesota Statutes 290A.03
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- property taxes payable: includes the amount of the payments directly attributable to the property taxes assessed against the parcel on which the house is located. See Minnesota Statutes 290A.03
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
- Tax: means any fee, charge, exaction, or assessment imposed by a governmental entity on an individual, person, entity, transaction, good, service, or other thing. See Minnesota Statutes 645.44
MS 2022 [Repealed, 2023 c 64 art 7 s 31]
Subd. 2b.
MS 1984 [Repealed, 1Sp1985 c 14 art 5 s 7]
Subd. 2b.Tables may be reconstructed.
The commissioner may reconstruct the tables in subdivision 2 for homeowners to reflect the elimination of the homestead credit beginning for claims based on taxes payable in 1990.
Subd. 2c.
[Repealed, 1983 c 15 s 33]
Subd. 2d.
[Repealed, 1983 c 15 s 33]
Subd. 2e.
[Repealed, 1987 c 268 art 3 s 13]
Subd. 2f.
[Repealed, 1Sp1986 c 1 art 3 s 21]
Subd. 2g.
[Repealed, 1987 c 268 art 3 s 13]
Subd. 2h.Additional refund.
(a) If the gross property taxes payable on a homestead increase more than 12 percent over the property taxes payable in the prior year on the same property that is owned and occupied by the same owner on January 2 of both years, and the amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed an additional refund equal to 60 percent of the amount of the increase over the greater of 12 percent of the prior year’s property taxes payable or $100. This subdivision shall not apply to any increase in the gross property taxes payable attributable to improvements made to the homestead after the assessment date for the prior year’s taxes. This subdivision shall not apply to any increase in the gross property taxes payable attributable to the termination of valuation exclusions under section 273.11, subdivision 16.
The maximum refund allowed under this subdivision is $1,000.
(b) For purposes of this subdivision “gross property taxes payable” means property taxes payable determined without regard to the refund allowed under this subdivision.
(c) In addition to the other proofs required by this chapter, each claimant under this subdivision shall file with the property tax refund return a copy of the property tax statement for taxes payable in the preceding year or other documents required by the commissioner.
(d) Upon request, the appropriate county official shall make available the names and addresses of the property taxpayers who may be eligible for the additional property tax refund under this section. The information shall be provided electronically. The county may recover its costs by charging the person requesting the information the reasonable cost for preparing the data. The information may not be used for any purpose other than for notifying the homeowner of potential eligibility and assisting the homeowner, without charge, in preparing a refund claim.
Subd. 2i.
[Repealed, 1995 c 264 art 15 s 6]
Subd. 2j.
[Repealed, 1Sp2001 c 5 art 7 s 66]
Subd. 3.Table.
The commissioner of revenue shall construct and make available to taxpayers a comprehensive table showing the property taxes to be paid and refund allowed at various levels of income and assessment. The table shall follow the schedule of income percentages, maximums and other provisions specified in subdivision 2, except that the commissioner may graduate the transition between income brackets. All refunds shall be computed in accordance with tables prepared and issued by the commissioner of revenue.
The commissioner shall include on the form an appropriate space or method for the claimant to identify if the property taxes paid are for a manufactured home, as defined in section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under section 168.012, subdivision 9.
Subd. 4.Inflation adjustment.
The commissioner shall annually adjust the dollar amounts of the income thresholds and the maximum refunds under subdivision 2 as provided in section 270C.22. The statutory year is 2023.
[See Note.]
Subd. 5.Homeowner refund and renter’s credit.
A claimant is allowed to make a claim for refund under this chapter in addition to any credit the claimant is eligible for under section 290.0693.
Subd. 6.
[Renumbered subd 4]