A reduction in property tax for physically damaged or destroyed homestead and utility property.
Physically damaged or destroyed homestead property in a disaster or emergency area may be eligible for the homestead disaster credit. The credit is equal to the difference in net tax on the property using the market value before the damage occurred and the net tax using the reassessed market value after the damage occurred. The credit is applied to the property's tax the year following the year in which the damage occurred.
The local option disaster credit may be available for properties that do not qualify for the homestead disaster credit. To be eligible for the local option disaster credit, the property must meet two requirements:
The property owner submits an application to the county assessor and to the county board before the end of the year in which the damage occurred.
The county assessor determines that 50 percent or more of the eligible property has been unintentionally or accidentally destroyed, or destroyed by arson or vandalism by someone other than the owner.
The local option disaster credit for a property not located in a disaster or emergency area is determined by multiplying (i) the difference in the net tax on the property using the taxable market value and the net tax on the property using the reassessed market value by (ii) a fraction representing the number of full months out of the assessment year that the property was not usable.
Disparity Reduction Aid (DRA) started in 1989 as part of property tax reform enacted by the Minnesota Legislature in 1988. It was designed to prevent tax rates from being disparately high for individual unique taxing areas. DRA directly reduces the tax rate in certain areas so levies are paid in part by DRA rather than completely by taxpayers. Only taxing areas that received DRA in 1989 and still have a tax rate over 90 percent are eligible for this aid.
A reduction in property tax for apartments, commercial, industrial, and public utility property in certain cities along the state border.
Property qualifies for the credit if it is located in Breckenridge, Dilworth, East Grand Forks, Moorhead, or Ortonville. The credit equals the difference between the calculated property tax amount and 1.6 percent of the property's taxable market value. The credit effectively reduces the tax rate on qualifying properties to 1.6 percent of taxable market value.