Summary from the Minnesota Budget Project‘s Renters’ Credit fact sheet:
Minnesota’s property taxes are regressive, which means low- and middle-income Minnesotans pay a larger share of their income in property taxes than higher-income Minnesotans do. The Property Tax Refund … reduces the regressivity of property taxes by providing a tax credit to households whose property taxes are high in relation to their income.
Nearly 600,000 Minnesota households received the Property Tax Refund in 2007. Just over half were homeowners; the rest were renters. The average amount of credit is $668 for homeowners and $550 for renters. For claims filed in 2009, renters must have household incomes less than $52,299 and homeowners must have incomes less than $96,939. The income ceilings are adjusted each year for inflation.
Over 300,000 low- and moderate-income Minnesota tenants got a Renters’ Credit refund this year. Many households report using the refund to cover essentials (e.g. food, school supplies, car repairs, medications, etc.).
This past July, in a rarely used move called “unallotment,” Governor Pawlenty decided to cut the average Renters’ Credit by $129 beginning next summer.
Many Minnesota renters have no clue the Governor has made such a terrible decision; and thus, they haven’t asked their elected officials to intervene.
Thankfully, the Minnesota State Legislature can decide to override the Governor.
If you are a renter who usually gets the Renters’ Credit, send an email to homework@homelinemn.org. Tell us what you would use that $129 for next August. Not a renter? Call, write, or email any renters you know and tell them what’s being planned. Encourage them to tell us why they need a full Renters’ Credit.
