Agenda - Council - 07/23/1979 - Laserfiche WebLink

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Mr. Lloyd Schnelle Page 2 first and second maximum amounts are higher as compared to non-senior, non-disabled claimants. In the example, the senior citizen's two maximum amounts were $850 and $1,000 respectively, while the maximum amounts for the non-senior, non-disabled claimant (with the same household income) were $650 and $1,000 respectively. While there is always a difference between the maximum circuit-breaker amounts allowed at a given income level for senior versus non-senior claimants, the amount of difference varies at different income levels (see enclosed sheet). On a statewide basis for ' claims filed in 1978, the difference between the average Property Tax Refund amounts for senior citizen homeowners and non-senior citizen homeowners was $40 ($239 vs $199). The only other instance that I am aware of in which there would be a difference in the treatment of senior versus non-senior citizens for property tax purposes would be in the case of property eligible for preferrential assessment rates as provided in Minnesota Statutes 1978, Section 273.13, Subdivisions 17, 17a, 17b, and 17c*. Please refer to the law for the specific details, but in general these sections provide that certain property used for housing the elderly or low and moderate income families shall be assessed at 20% of assessor's market value. In comparison,. apartment buildings generally are assessed at 40% of market value. Of course this does not really benefit the other property owners within the city or taxing district since the total amount of property taxes levied is not affected. It merely means that the property taxes which are not paid by this property because of its lower assessment rate will instead be paid by all other property owners in the taxing district, some of whom are homestead owners; and, while the increased amount of property taxes paid by these taxpayers will to some degree result in increased amounts of state paid credits (regular homestead credit and property tax refunds), the fact that some of the property owners are already receiving their maximum allowable amounts of these credits means that for some there would be no increase in'credits, only an increase in tax. I will just briefly touch on the other major taxes, the income tax and sales tax. For the income tax, the basic difference is the additional personal credit provided for senior citizens (credit is applied against income tax liability and is not refunded if individual has no liability or a liability of less than the credit amount). The amount of the additional credit allowed senior citizeh filers is $55 for tax year 1979, returns to be filed in 1980. The sales tax has no special exemption for senior citizens except in that food, clothing and drugs are exempt from the sales tax for everyone. To the extent, that seniors buy more of the exempt items proportionately than other people, they receive more of a benefit'(and pay less into the state treasury). * New subdivision enacted by Laws of Minnesota 1979, Chapter 303, Article II, Section 16.