Tuesday, January 26, 2010

Are You a Renter Residing in Minnesota?

If so, you might already know that your 2009 Renters' Credit tax refunds is decreased from 19% to 15%.
Here are some relevant background:
-For many low to moderate income Minnesotans, the Renters' Credit provide a tax refund on their disproportionally large contribution to property taxes.
-Minnesota's property taxes are regressive such that low to middle income Minnesotans pay a larger share of their income than their higher-income counterparts.
-The Property Tax Refund lessened this regressivity by providing a credit to households whose property taxes are high in relation to their income. Also know as "Circuit Break" for homeowners and the "Renters' Credit" for renters.
-Starting 2004 to 2009, statewide rental property taxes have increase 3 times greater than the Renters' Credit refund.
-28% of Renters' Credit recipients are seniors or people with disabilities. And in the Greater Minnesota counties, over 50% of recipients are seniors or people with disabilities!
-In 2006 over 274,000 low to middle income Minnesota households received an average $550 due to the Renters Credit refund.
-2010-2011, the Governor's proposed 27% Renters Credit reduction which is about $51 million per year thus reducing refunds from 19% of rent paid to 15%.
-Under this allotment, the average Renter's Credit will be reduced by $129 for claims beginning August 2010.

For many Minnesotans, the Renters' Credit is more than just a tax rebate. It is a critical tool to offset the high cost of property taxes paid by renters in these tough economic time.
Click here for more information on this critical issue.

Click here for a calculation of your renter's rebate with and without unallotment.

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