To understand how these estimates are calculated, you need
to understand the push and pull relationship of two variables. Those two
variables are:
1) The amount the senior is responsible for paying (3% of
total income the year before he\she enters program)
2) The amount the senior receives from the MN Property Tax
Refund.
If two seniors have the exact same amount of property tax
but radically different incomes, the amount that each will defer will be
comparable because of how these two variables counterbalance each other.
For instance, if a senior has a large income
(let’s say $50,000
per year), they will be responsible for paying a large amount each year
($1,500). However, the senior will receive a small MN Property
Tax Refund because their
income is so large.
In contrast, if a senior has a smaller income (let’s say $25,000),
they will be responsible for paying a smaller amount ($750). However, the senior who has a smaller income
will receive a larger Property Tax Refund because their income is smaller.
It is because of this relationship, namely this counterbalancing
effect, that allows for these estimate ranges to be calculated.