As a renter or property owner, it’s wise to understand the kind of Minnesota tax credits that apply to you. You may benefit from the homestead tax credit and not even realize it. Roughly only two-thirds of all homeowners that are eligible apply for tax credits; and even as a renter, you may qualify. Minnesota homeowners and renters should understand the basics of what the homestead tax credit is and if they do or do not qualify for it.
The Minnesota homestead tax credit is a refund that is based upon your household income and property taxes paid on your home in Minnesota. Some homeowners might not know that they even qualify for this credit. There are two different types of credits – the regular homestead credit refund or the special homestead credit refund.
Property taxes help pay for schools, streets, fire and police protection, and more. Property taxes are less susceptible to economic, income, or spending trends. There are a number of things that can have an impact on your property taxes, though.
The value and classification of your property are used to determine your share of the levy (budget) for local governments. The estimated market value of your home does not directly affect your property tax bill, but rather the taxable market value is used to determine your share of the levy.
A property’s taxable market value (TMV) is its estimated market value minus any tax exemptions, deferrals, and value exclusions that apply. Many homeowners qualify for a homestead tax exemption that reduces the amount of home value that is subjected to tax.
If your property taxes increase due to the taxable market value of your home, you might be able to file for a higher refund. A home that has a higher market value may increase the market value of the homes around it in the neighborhood, thus creating a higher property tax. Home improvements may add to the value of your home. This does not apply to the special homestead credit refund.
There are several ways you might increase the value of your home without going over your budget. Here are some ideas for home improvement options:
If you are wanting to update your home in order to increase its value, Harkraft can help! With over 50 years of experience and expertise, we’ll help with mudroom design, creating more storage, and modernizing outdated fixtures. Providing you with quality products and exceptional customer service, we can take your home to the next level. Contact us today to schedule an appointment.