Some clients with a Homestead Exclusion for Veterans with a Disability may be eligible for a special property tax refund

Minnesota Department of Revenue sent this bulletin at 09/13/2019 10:05 AM CDT

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Minnesota Department of Revenue

The Minnesota Department of Revenue will send letters to taxpayers who have a Homestead Exclusion for Veterans with a Disability and may be eligible for a 2017 or 2018 special property tax refund. This represents less than .1% of the claims for the homeowner refunds. Clients who receive this letter may qualify for a special Minnesota property tax refund (special refund). We attached copies of the letters your clients may receive: one for 2017 special refunds, and another for 2018 special refunds.

Why is the department contacting clients?
Some of your clients’ property values increased above their Homestead Exclusion for Veterans with a Disability in either 2017 or 2018. Because they owed property taxes on their homes, they may qualify for a special refund for that year.

If clients previously tried to file for the special refund and were told they did not qualify, they may now qualify for this refund.

For 2017 returns only, the affected taxpayers have until December 31, 2019 to file a claim. For the affected taxpayers, the statute of limitations to file for a 2017 special property tax refund has been suspended until December 31, 2019. No refunds will be issued for claims filed after December 31, 2019.

Do these clients qualify for the special refund?
Clients whose property value exceeded the exclusion will qualify if all of the following are true:

  • They owned and occupied the same home on the following dates:
    • For tax year 2017: January 2, 2017, and January 2, 2018
    • For tax year 2018: January 2, 2018, and January 2, 2019
  • Their property tax increased by more than 12 percent during the year
  • The property tax increase was at least $100
  • The property tax increase was not due to improvements made to the property

How can clients claim the special refund?
Clients should follow the instructions on the letter they receive. The letter instructions may differ depending on the tax year and your clients’ filing history with us.

If your clients ask you to assist them with this process, you must file using the simplified form “2017 Form M1PR, Homestead Credit Refund (for Homeowners)” and mail it to the address listed on the letter.  

Questions?
Contact us.

Phone: 651-556-3017 or 1-833-263-8663 (toll-free)

Email: individual.incometax@state.mn.us