More Renters in Minn. to Receive Rent Credit
Renters take notice.
Whether you rent a place to live in Eden Prairie, Roseville or anywhere in Minnesota you'll likely be affected by a change in state law.
The state is upping it's renters refund program. One agency, the Department of Revenue, is working to get the word out, because after years of cuts, many renters don't even know it exists.
For renters, the state's property tax relief program will jump $15 million from $203 to $219 million over the next two years. This means the number of people who qualify and the amount they get will go up.
The refund is based on three things: an income limit of $56,000, the number of dependents and rent paid.
The average rent in the Twin Cities is $1,400. The landlord passes on the cost of owning the property to renters by building in a fee to the monthly payment. At years end, renters can apply for a tax credit.
But since tax legislation passed in 2011, the renter's credit plunged 13%, resulting in $26 million worth of cuts.
It's only when state financial experts realized rental credit isn't keeping up with rental taxes, they increased the refund program.
For an estimated 300,000 renters in Minnesota, they're looking at a 17% tax credit come January.
The maximum tax credit you can get next year is $1,600.
Click here to learn more about the Renter's Property Tax Refund.