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Form CR-SCD Instructions

About this program

This program allows people 65 or older to defer a portion of their homestead property taxes. The deferral begins with real estate taxes payable the year after you make the initial application.

Participation in this program is voluntary.

There are some important facts you should know before you apply.

  • This is a loan from the state to you. The deferred tax is paid by the state to you county.
  • Interest will be charged on the loan. The interest rate will be adjusted anually but will never exceed 5 percent.
  • A lien will attach to the property.
  • The county will send you a notice each year showing the current year’s deferred taxes, the total cumulative deferred taxes and accrued interest. This information becomes public data.
  • The amount of property tax you pay each year will be based on your income the year before you enter the program.

Who qualifies

To qualify, you must meet all of the following requirements:

  1. You must be 65 or older and own and occupy the property as a homestead. If you’re married, your spouse must be at least 62 when the first deferral is granted.
  2. Your total household income cannot exceed $60,000 in the calendar year prior to the year you apply.
  3. At least one of the homeowners must have owned and occupied the property as their homestead for at least 15 years prio to the year of application.
  4. There can be no state or federal tax liens or judgment liens on the property.
  5. Total debts secured by mortgages and other liens agains the property cannot exceed 75 percent of the property’s estimated market value.

Homeowners with a reverse mortgage do not qualify to participate in this program.

When to apply

You must apply by July 1 in order for your taxes to be deferred the following year. You may apply in the year in which you turn 65. Once enrolled in the program, you don’t need to reapply.

If your income changes or you want to stop deferral

If your income exceeds $60,000 in a calendar year, you must notify us in writing by July 1 of the following year. You won’t be able to defer additional taxes until your income drops to $60,000 or less, at which time you’ll need to send a written request to resume deferral. If you want to voluntarily stop deferral, you must also send the Minnesota Department of Revenue written notice. Send notice to:

Minnesota Revenue

Mail Station 3340

St. Paul, MN 55146-3340

Paying back the tax

Your participation in the program will end when any one of the following occurs:

  • The property is sold or transferred.
  • All qualifying homeowners die.
  • You notify the department in writing to stop deferral.
  • The property no longer qualifies as a homestead.

When any of these happen, the deferred taxes puls interest must be paid back to the state. If the property is sold or the homeowner dies, payment is due within 90 days. If you voluntarily stop deferral or the property no longer qualifies as a homestead, you’ll have one year to pay back the amount.

If you pay back the tax within the above time frames, you will not be charged additional interest. The county will record a notice of termination and send a copy to you. You must pay any recording or filing fees.

If you don’t pay back the tax on time, penalty, interest, lien, forfeiture and other rules for collecting property taxes will apply.

How this program affects refunds and rebates

You can apply for property tax refunds or rebates based on the qualifying amount on your property tax statement.

You will not, however, receive property tax refunds or rebates as cash payments. You will also not receive Minnesota income tax refunds, political contribution refunds or lottery winnings of any type. Instead, these refunds will be applied to reduce your deferred property tax total.

The Minnesota Department of Revenue will notify you whenever they use a refund to reduce the amound of deferred tax. If your refund exceeds the deferred amount, the Minnesota Department of Revenue will send you a check for the difference.

How we use information

Some of the information on this applicaiton is private data. The Minnesota Department of Revenue uses the information to determine your eligibility. To verify information, they may share it with the county assessor, the county attorney, and federal, state or local taxing authorities. You’re not required to provide the information the state asks for; however, if you don’t, you won’t be considered for the program.

Penalties

You’ll be charged a penalty equal to 20 percent of the deferred tax if the information on your application, property certificate or abstract report is false; or if you don’t notify The Minnesota Department of Revenue that your income exceeds program limits. If you intentionally give the Minnesota Department of Revenue false information on any of the above, the penalty increase to 50 percent of the deferred tax.

Questions?

If you need help completing this application, call  the Minnesota Department of Revenue at 651-556-4803.

Last updated by the Pope County Assessor’s office February 28, 2024