Minnesota homeowners 65 and older who want to defer next year’s property tax have until Nov. 1 to apply, and county offices are warning that the program is a loan secured by a lien on the house, not tax forgiveness. Nov. 1 falls on a Sunday this year. Applicants pay 3 percent of household income toward the bill and the state advances the rest, to be repaid with interest.
How the deferral works
Dakota County’s taxation office says the state program is “not a tax forgiveness program.” Taxes are capped at 3 percent of household income, and the state pays the remainder as a loan that becomes a lien on the property.
The Minnesota Department of Revenue, which runs the program, describes the same arrangement. A household with $60,000 in income would owe $1,800 toward the year’s tax, with the state covering whatever is left. Once accepted, an applicant does not need to reapply each year.
Who qualifies and what the Nov. 1 date covers
Applicants must be 65 or older. If married, one spouse must be 65 or older and the other at least 62. Household income can be no more than $96,000, and the home must have been owned and homesteaded for the last five years…