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Market Value Credits
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Taxpayers receive market value credits in order to reduce the amount of taxes paid on real and personal property parcel tax statements. As a result, the amount of taxes received by the different taxing jurisdictions is lower than the levy amount originally certified.
The state of Minnesota reimburses the local governments for the following credits so they are not adversely affected by these programs, unless reductions are required by the legislature.
- Homestead Disaster Credit
- Local Option Disaster Credit
- Agricultural Homestead Market Value Credit
- Metropolitan Agricultural Preserves Credit
- County Conservation Credit
- Supplemental Taconite Homestead Credit
- Disparity Reduction Credit
- Border City Development Zone Credit
No reductions have been applied to the current or previous taxes payable year. For further detail regarding these credits, see the Auditor/Treasurer Manual.
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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.
