Protecting the Renters' Credit

The Minnesota Budget Project opposes cuts to the Renters' Credit. The Renters' Credit is an important tool to ensure that low- and moderate-income Minnesotans do not pay too high a share of their incomes in property taxes.

Issue Overview

The Renters' Credit provides a property tax refund to about 336,000 households, 27 percent of which include seniors or people with severe disabilities. In parts of Greater Minnesota, an even higher share of those who receive the Renters' Credit are seniors or people with disabilities.

The Renters' Credit refunds a portion of the property taxes that renters have paid through their rents. About 70 percent of those who qualify have household incomes roughly $31,000 or less.

Cutting the Renters' Credit would make things harder for people who already struggle to pay the bills. Minnesotans report that when they receive this property tax refund, they use it to buy medicine or school clothes for their children, to catch up on bills, or for other basic needs. This spending in turn boosts our local economies.

Status

No cuts to the Renters' Credit were passed in the 2017 Legislative Session or Special Session.

The House omnibus tax bill (House File 4) had included provisions to cut the Renters' Credit. For Tax Year 2017, House File 4 would make a number of changes in the formula for calculating the Renters' Credit, which net out to a small $1.8 million increase. However, the impact on individual households would vary widely: 184,000 households would benefit from the combination of changes by an average of $77, but another 190,000 would see an average $65 cut in their Renters' Credits, according to analysis by the Minnesota Department of Revenue.

Starting in Tax Year 2018, House File 4 would have cut the Renters' Credit by about $41 million per year or an average reduction of about $115 for more than 340,000 households across the state, with the largest cuts falling on residents of Greater Minnesota and the city of St. Paul.

More Information

Staff contact: Nan Madden, Minnesota Budget Project Director, 651-757-3084

Donate Today!

Image of Give MN logo

Join in Minnesota's Give to the Max Day! With your support, we will continue to work towards a future where all Minnesotans have access to opportunity and economic well-being.

Donate Now »