faqs

The MN Senior Citizen Property Tax Deferral is a state run program that provides property tax relief by allowing you to defer a portion of your property tax.

It is designed to be used in addition to the MN Property Tax Refund.

What is the MN Property Tax Refund?

The MN Property Tax Refund is the first step in reducing your property taxes. Generally speaking, most home owners whose income is under $70,000 qualify. Many people save hundreds of dollars because of this refund.

Useful links:

Forms and instructions:

http://www.taxes.state.mn.us/prop_refund/forms.shtml

MN property tax refund calculator:

http://www.efile-express.com/m1pr_calc.htm

Who developed this website?

In 2007 Standish Ericsson Neighborhood Association (SENA) and Nokomis Healthy Seniors (NHS) began collaborating on the Supporting Our Seniors (SOS) project.

We received a Neighborhood Planning for Community Revitalization (NPCR) grant from the Center for Urban and Regional Affairs (CURA) at the University of Minnesota for a summer intern.

The research and development of this site was completed by Bethel University student John Gianoulis.

A copy of Gianoulis's complete report can be found on either the SENA or CURA websites.

This project was supported by Neighborhood Planning for Community Revitalization (NPCR), a program of the University of Minnesota’s Center for Urban and Regional Affairs (CURA). The contents of this report are solely the responsibility of the author, and are not necessarily endorsed by the University of Minnesota, CURA, or NPCR.

Who gives the loan?

The State of Minnesota gives the loan. Once you are enrolled in the program the state pays your property taxes to your county.

When was the MN Senior Citizen Property Tax Deferral established?

The Deferral Program was established in 1997.

How many homes are enrolled in the Deferral Program?

In 2006 there were 127 homes enrolled in the Deferral Program.

Do I need to make monthly payments towards my loan balance?

No, you do not have to make monthly payments toward your total loan balance.

What has been the annual interest rate historically?

The annual interest rate has always been 5 percent.

When will my taxes start being deferred?

Your taxes start being deferred the after you are accepted into the program. For example, if John were accepted into the Deferral Program in 2007, his property taxes would start being deferred in 2008.

What happens when I sell my house?

When you sell your house you must pay your total loan balance along with any recording or filing fees within 90 days.

If you don’t pay back the tax on time, penalty, interest, lien, forfeiture and other rules for collecting property tax will apply.

Can I make payments to reduce my total loan balance?

You can make payments to reduce your total loan balance; however, this is not a built-in feature of the Deferral Program. If you would like to make payments, call MN Department of Revenue representative Julie Rosalez at (651) 556-6088.

Am I still eligible if I have a reverse mortgage?

No. Both the deferral program and reverse mortgage programs require that they be the first loan placeholder on the home.

Am I still eligible if my home needs a lot of repairs?

As long as you meet all of the eligibility conditions you qualify for the Deferral Program, regardless of your home’s condition.

How do I find my Total Household Income?

Your Total Household Income is equal to the amount on Line 6 (not Line 8!) of the MN Property Tax Refund Form (M1PR).

If you do not have a recent MN Property Tax Refund Form you can estimate your Total Household Income by adding up the following amounts:

1. Federal adjusted gross income (from line 37 of federal Form 1040, line 21 of Form 1040A, or line 4 of Form 1040EZ)

2. Nontaxable Social Security and/or Railroad Retirement Board benefits received and not included in line 1 above

3. Deduction for payments made to an IRA, Keogh, Simplified Employee Pension (SEP) or SIMPLE plan

4. Total welfare received, including MFIP (Minnesota Family Investment Program), MSA (Minnesota Supplemental Aid), SSI (Supplemental Security Income), GA (General Assistance) and GRH (Group Residential Housing)

5. Additional nontaxable income - such as workers’ compensation or contributions to a 401(k) plan - that you must include.

Do I need a copy of the Original Certificate of Title?

No, you only need a copy of your certificate of title. The Deferral Application is incorrect.

What is the difference between Torrens and Abstract property?

Torrens Property is property that is indexed and managed by the Office of the Registrar of Titles. Whenever Torrens Property is affected (by mortgage, lien, etc), a report is filed with the Registrar of Titles. Upon recieving the report, the Registrar of Titles updates the owner's certificate of title to reflect the change. A crucial distinction between Abstract and Torrens Property is that with Torrens property the certificate of title lists all the encumbrances upon the property and is constantly updated.

Abstract Property is property that is indexed and managed by the Office of the County Recorder. Whenever abstract property is affected (by mortgage, lien, etc.), a report is filed with the county recorder. Unlike Torrens Property, these reports are not added to the Certificate of Title or consolidated into a single document by the County Recorder. Instead, an independent title company consolidates these reports into an "owners and encumbrances report" which lists all encumbrances upon the property.

Most residents of Minnesota have Abstract Property. Also, in most counties the Office of the County Recorder and Registrar of Titles are combined.

When will I hear if I’ve been accepted into the Deferral Program?

You should hear within sixty days if you’ve been accepted into the program.