Could You Be Overpaying on Property Taxes? How to Find Out!

Could you be paying more on your Minnesota property taxes than you need to? Here’s how to check and potentially save money. 🌐 #News #StPaulMN #Minnesota #RealEstate

ST. PAUL, MN – If you’re a homeowner in Minnesota, you likely pay property taxes. But are you paying more than you should? Many homeowners might be overpaying without even realizing it. Here’s what you need to know and how to check if you’re paying the right amount.

How Property Taxes Are Calculated

Property taxes in Minnesota are based on the assessed value of your home. Each county assesses the market value of properties annually. The tax amount is determined by multiplying the assessed value by the local tax rate.

However, mistakes can happen. If your home’s assessed value is too high, you might end up paying more than you owe.

Common Reasons for Overpaying

Errors in Property Assessment: Mistakes in square footage, property features, or even recent sales data can inflate your home’s value.

Outdated Comparables: If your home was compared to higher-value properties, your assessment might not reflect its true worth.

Missed Exemptions or Credits: Minnesota offers property tax relief programs, such as the Homestead Credit. If you’re eligible but didn’t apply, you could be missing out on savings.

Steps to Check and Challenge Your Taxes

Review Your Property Tax Statement:
Each year, your county sends a statement detailing your home’s assessed value and tax amount. Look for any discrepancies in the assessment.

Compare Similar Properties:
Check the assessed values of similar homes in your area. If your home’s value is noticeably higher, there might be an issue.

Request an Informal Review:
Contact your county assessor’s office to discuss your concerns. They might adjust the value without needing a formal appeal.

File a Formal Appeal:
If the informal review doesn’t resolve the issue, you can file an appeal. Minnesota’s deadline for appeals varies by county, so act quickly.

Take Advantage of Tax Relief Programs

Minnesota offers programs to help homeowners reduce their property tax burden. Some options include:

Homestead Credit Refund: If your property taxes exceed a certain percentage of your income, you may qualify for a refund.
Senior Citizens Property Tax Deferral Program: This program allows seniors to defer a portion of their taxes until the property is sold.

Check with the Minnesota Department of Revenue for more details on these programs.

Don’t Leave Money on the Table

Taking the time to review your property taxes could save you hundreds or even thousands of dollars. Whether it’s correcting an assessment error or applying for a tax relief program, there are steps you can take to ensure you’re not overpaying.

Have you checked your property tax statement this year? It might be time to give it another look!

RELATED TOPICS: Minnesota | Personal Finance | Real Estate