Changes In Minnesota Property Tax Law

In 2011, Minnesota’s Legislature decided to repeal the Homestead Market Value Credit and replaced it with a program known as the Homestead Market Value Exclusion.  Beginning in 2012 the homestead credit will be eliminated.  Under this new law, property taxes will increase for some homeowners.  There will be no state paid credit, but rather the entire property tax levy will be paid by local taxpayers. Minnesota is no longer providing a homestead credit and instead the entire levy is being paid by local property taxpayers.  According to the State of Minnesota, this change will save the state $261 million in monies