Property tax

There is a law in MN which helps low-income retirees with their property tax but most are not aware. The law, aptly named, is called the Senior Citizens Property Tax Deferral Program. It allows citizens over age 65 who have lived in their homes for more than five years and have incomes below $96,000 to reduce their property tax bill. Case in point. A widow over 65 who has lived in her house for more than five years has income of $30,000 which consists of her husband social security and a small pension. She has lived in her house for many years and does not want to move. Her taxes are $4,000 and increasing every year and are stretching her budget. She can join the deferral program to take some of the burden off her budget. She agrees to pay only 3% of her income, in this case, 3% of $30,000 or $900 toward her property tax bill. The state will pick up the remaining $3,100 with the agreement that the state will recoup the money when the house is sold. The state will charge 3% interest on these deferred payments.