Market Value Credits

Prior Year Credit adjustments are created when due to clerical error, tax court decisions, or other qualifying reasons, a parcel is determined to have qualified, or not qualified, for a credit in a previous tax year. Negative credit adjustments reduce overall credit payments being received by a jurisdiction in the current payable year, while positive credit adjustments are reflected as separate payment to the jurisdictions within the current payable year. These types of credits are grouped together, as positive or negative adjustments, under the following definitions:

• Prior Year Homestead Credit Adjustments
• Prior Year Other Credit Adjustments

Credits that are received by Tax Increment Financing (TIF) Districts are considered to be tax increment and therefore subject to the restrictions of the TIF Act. The funds must be treated accordingly, which includes being separated from other funds (See Minnesota Statutes 469.174, subdivision 25).

Manufactured homes are not included in the certified levy process, but taxpayers still qualify for any credit programs their parcels qualify for. As a result, manufactured home credits are listed separately but should be treated like all other credits.

The majority of these credits are reported to the Minnesota Department of Revenue by the counties through the Property Record Information System of Minnesota (PRISM). Credits paid to school districts, including the School Bonding Credit, are not listed here as they are distributed to the school districts by the Minnesota Department of Education.

The first half of the Agricultural Homestead Market Value Credit payment on real and personal property is paid October 31 of each year, minus any negative Prior Year Credit adjustments. All remaining credits are paid December 26, including all TIF and Manufactured Home credits.