The Renters’ Credit, formally called the Property Tax Refund or PTR, is a state property tax refund for low- and moderate-income households whose property taxes are high in relation to their income. The Renters’ Credit refunds a portion of the property taxes that renters pay through their rents. In 2010, more than 281,000 Minnesota households received the Renters’ Credit; 30 percent of those households include seniors or people with disabilities.[1]
During the recent recession and slow recovery, the State of Minnesota faced severe revenue shortfalls. In 2009, as part of actions to balance the budget, Governor Pawlenty sought to substantially cut the Renters’ Credit through the unallotment process. The 2010 Legislature enacted his plan as part of its final budget.
The cuts applied to Renters’ Credit applications filed in 2010 only. Recent data demonstrates the harmful impact of this action across the state. Total Renters’ Credit payments in 2010 fell by $42 million compared to 2009, a drop of 24 percent. The number of households receiving the Renters’ Credit fell by 23,050, or eight percent. The average refund dropped by $103, and the average refund received by households including seniors and/or people with disabilities fell by $131.[2]
The data below illustrates the changes to the Renters’ Credit to people in each county and for the state as a whole.
Renters’ Credits Received by County of Residence, 2009 to 2010
Aitkin
Change in Renters’ Credits: -$69,574
Change in number of participating households: -18
Change in average Renters’ Credit (all recipients): -$117
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$139
Anoka
Change in Renters’ Credits: -$2,231,048
Change in number of participating households: -1,227
Change in average Renters’ Credit (all recipients): -$107
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$161
Becker
Change in Renters’ Credits: -$183,056
Change in number of participating households: -126
Change in average Renters’ Credit (all recipients): -$95
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$128
Beltrami
Change in Renters’ Credits: -$220,404
Change in number of participating households: -102
Change in average Renters’ Credit (all recipients): -$90
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$105
Benton
Change in Renters’ Credits: -$416,576
Change in number of participating households: -332
Change in average Renters’ Credit (all recipients): -$92
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$133
Big Stone
Change in Renters’ Credits: -$16,028
Change in number of participating households: -6
Change in average Renters’ Credit (all recipients): -$68
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$73
Blue Earth
Change in Renters’ Credits: -$588,290
Change in number of participating households: -474
Change in average Renters’ Credit (all recipients): -$96
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$133
Brown
Change in Renters’ Credits: -$138,447
Change in number of participating households: -114
Change in average Renters’ Credit (all recipients): -$74
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$115
Carlton
Change in Renters’ Credits: -$208,111
Change in number of participating households: -115
Change in average Renters’ Credit (all recipients): -$111
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$118
Carver
Change in Renters’ Credits: -$471,503
Change in number of participating households: -248
Change in average Renters’ Credit (all recipients): -$107
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$128
Cass
Change in Renters’ Credits: -$81,466
Change in number of participating households: -3
Change in average Renters’ Credit (all recipients): -$100
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$104
Chippewa
Change in Renters’ Credits: -$80,672
Change in number of participating households: -60
Change in average Renters’ Credit (all recipients): -$98
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$102
Chisago
Change in Renters’ Credits: -$254,833
Change in number of participating households: -176
Change in average Renters’ Credit (all recipients): -$95
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$127
Clay
Change in Renters’ Credits: -$355,386
Change in number of participating households: -179
Change in average Renters’ Credit (all recipients): -$89
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$113
Clearwater
Change in Renters’ Credits: -$30,969
Change in number of participating households: -31
Change in average Renters’ Credit (all recipients): -$71
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$77
Cook
Change in Renters’ Credits: -$25,932
Change in number of participating households: -28
Change in average Renters’ Credit (all recipients): -$85
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$70
Cottonwood
Change in Renters’ Credits: -$6,928
Change in number of participating households: 34
Change in average Renters’ Credit (all recipients): -$47
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$22
Crow Wing
Change in Renters’ Credits: -$410,665
Change in number of participating households: -168
Change in average Renters’ Credit (all recipients): -$104
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$103
Dakota
Change in Renters’ Credits: -$3,030,242
Change in number of participating households: -1,603
Change in average Renters’ Credit (all recipients): -$107
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$152
Dodge
Change in Renters’ Credits: -$70,000
Change in number of participating households: -62
Change in average Renters’ Credit (all recipients): -$69
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$80
Douglas
Change in Renters’ Credits: -$223,222
Change in number of participating households: -163
Change in average Renters’ Credit (all recipients): -$77
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$84
Faribault
Change in Renters’ Credits: -$64,931
Change in number of participating households: -46
Change in average Renters’ Credit (all recipients): -$97
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$102
Fillmore
Change in Renters’ Credits: -$75,851
Change in number of participating households: -44
Change in average Renters’ Credit (all recipients): -$86
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$103
Freeborn
Change in Renters’ Credits: -$215,465
Change in number of participating households: -126
Change in average Renters’ Credit (all recipients): -$93
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$118
Goodhue
Change in Renters’ Credits: -$272,028
Change in number of participating households: -55
Change in average Renters’ Credit (all recipients): -$111
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$117
Grant
Change in Renters’ Credits: -$31,274
Change in number of participating households: -29
Change in average Renters’ Credit (all recipients): -$87
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$158
Hennepin
Change in Renters’ Credits: -$12,790,979
Change in number of participating households: -6,750
Change in average Renters’ Credit (all recipients): -$105
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$137
Houston
Change in Renters’ Credits: -$55,996
Change in number of participating households: -16
Change in average Renters’ Credit (all recipients): -$87
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$102
Hubbard
Change in Renters’ Credits: -$101,233
Change in number of participating households: -59
Change in average Renters’ Credit (all recipients): -$103
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$118
Isanti
Change in Renters’ Credits: -$222,959
Change in number of participating households: -92
Change in average Renters’ Credit (all recipients): -$124
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$126
Itasca
Change in Renters’ Credits: -$253,892
Change in number of participating households: -147
Change in average Renters’ Credit (all recipients): -$101
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$124
Jackson
Change in Renters’ Credits: -$26,550
Change in number of participating households: -41
Change in average Renters’ Credit (all recipients): -$39
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$33
Kanabec
Change in Renters’ Credits: -$71,524
Change in number of participating households: -17
Change in average Renters’ Credit (all recipients): -$104
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$156
Kandiyohi
Change in Renters’ Credits: -$304,022
Change in number of participating households: -119
Change in average Renters’ Credit (all recipients): -$102
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$99
Kittson
Change in Renters’ Credits: -$18,841
Change in number of participating households: -28
Change in average Renters’ Credit (all recipients): -$69
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$103
Koochiching
Change in Renters’ Credits: -$65,983
Change in number of participating households: -65
Change in average Renters’ Credit (all recipients): -$72
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$118
Lac Qui Parle
Change in Renters’ Credits: -$33,543
Change in number of participating households: -39
Change in average Renters’ Credit (all recipients): -$90
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$76
Lake
Change in Renters’ Credits: -$70,793
Change in number of participating households: -45
Change in average Renters’ Credit (all recipients): -$120
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$164
Lake Of The Woods
Change in Renters’ Credits: -$12,378
Change in number of participating households: 0
Change in average Renters’ Credit (all recipients): -$108
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$121
Le Sueur
Change in Renters’ Credits: -$136,248
Change in number of participating households: -93
Change in average Renters’ Credit (all recipients): -$101
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$128
Lincoln
Change in Renters’ Credits: -$10,695
Change in number of participating households: 4
Change in average Renters’ Credit (all recipients): -$92
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$70
Lyon
Change in Renters’ Credits: -$209,078
Change in number of participating households: -137
Change in average Renters’ Credit (all recipients): -$98
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$133
McLeod
Change in Renters’ Credits: -$236,243
Change in number of participating households: -125
Change in average Renters’ Credit (all recipients): -$97
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$121
Mahnomen
Change in Renters’ Credits: -$21,396
Change in number of participating households: -25
Change in average Renters’ Credit (all recipients): -$95
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$207
Marshall
Change in Renters’ Credits: -$33,059
Change in number of participating households: -37
Change in average Renters’ Credit (all recipients): -$86
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$141
Martin
Change in Renters’ Credits: -$103,599
Change in number of participating households: -38
Change in average Renters’ Credit (all recipients): -$85
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$124
Meeker
Change in Renters’ Credits: -$111,981
Change in number of participating households: -52
Change in average Renters’ Credit (all recipients): -$105
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$129
Mille Lacs
Change in Renters’ Credits: -$134,643
Change in number of participating households: -99
Change in average Renters’ Credit (all recipients): -$77
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$78
Morrison
Change in Renters’ Credits: -$172,420
Change in number of participating households: -59
Change in average Renters’ Credit (all recipients): -$95
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$102
Mower
Change in Renters’ Credits: -$250,788
Change in number of participating households: -66
Change in average Renters’ Credit (all recipients): -$107
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$138
Murray
Change in Renters’ Credits: -$23,281
Change in number of participating households: -38
Change in average Renters’ Credit (all recipients): -$45
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$71
Nicollet
Change in Renters’ Credits: -$248,970
Change in number of participating households: -150
Change in average Renters’ Credit (all recipients): -$105
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$131
Nobles
Change in Renters’ Credits: -$105,877
Change in number of participating households: -59
Change in average Renters’ Credit (all recipients): -$93
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$77
Norman
Change in Renters’ Credits: -$26,756
Change in number of participating households: -7
Change in average Renters’ Credit (all recipients): -$112
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$134
Olmsted
Change in Renters’ Credits: -$928,556
Change in number of participating households: -463
Change in average Renters’ Credit (all recipients): -$92
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$107
Otter Tail
Change in Renters’ Credits: -$326,607
Change in number of participating households: -205
Change in average Renters’ Credit (all recipients): -$99
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$125
Pennington
Change in Renters’ Credits: -$75,929
Change in number of participating households: -59
Change in average Renters’ Credit (all recipients): -$74
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$96
Pine
Change in Renters’ Credits: -$160,679
Change in number of participating households: -79
Change in average Renters’ Credit (all recipients): -$119
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$139
Pipestone
Change in Renters’ Credits: -$38,879
Change in number of participating households: -25
Change in average Renters’ Credit (all recipients): -$103
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$152
Polk
Change in Renters’ Credits: -$135,553
Change in number of participating households: -85
Change in average Renters’ Credit (all recipients): -$72
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$76
Pope
Change in Renters’ Credits: -$77,015
Change in number of participating households: -59
Change in average Renters’ Credit (all recipients): -$111
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$139
Ramsey
Change in Renters’ Credits: -$6,300,702
Change in number of participating households: -3,068
Change in average Renters’ Credit (all recipients): -$110
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$143
Red Lake
Change in Renters’ Credits: -$18,427
Change in number of participating households: -13
Change in average Renters’ Credit (all recipients): -$99
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$107
Redwood
Change in Renters’ Credits: -$92,558
Change in number of participating households: -43
Change in average Renters’ Credit (all recipients): -$119
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$139
Renville
Change in Renters’ Credits: -$68,252
Change in number of participating households: -72
Change in average Renters’ Credit (all recipients): -$71
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$87
Rice
Change in Renters’ Credits: -$355,572
Change in number of participating households: -199
Change in average Renters’ Credit (all recipients): -$94
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$144
Rock
Change in Renters’ Credits: -$66,361
Change in number of participating households: -49
Change in average Renters’ Credit (all recipients): -$134
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$204
Roseau
Change in Renters’ Credits: -$53,881
Change in number of participating households: -46
Change in average Renters’ Credit (all recipients): -$81
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$134
St. Louis
Change in Renters’ Credits: -$1,633,899
Change in number of participating households: -864
Change in average Renters’ Credit (all recipients): -$102
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$121
Scott
Change in Renters’ Credits: -$551,322
Change in number of participating households: -185
Change in average Renters’ Credit (all recipients): -$106
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$135
Sherburne
Change in Renters’ Credits: -$405,344
Change in number of participating households: -243
Change in average Renters’ Credit (all recipients): -$94
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$118
Sibley
Change in Renters’ Credits: -$58,024
Change in number of participating households: -17
Change in average Renters’ Credit (all recipients): -$94
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$98
Stearns
Change in Renters’ Credits: -$1,212,561
Change in number of participating households: -730
Change in average Renters’ Credit (all recipients): -$99
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$144
Steele
Change in Renters’ Credits: -$250,443
Change in number of participating households: -156
Change in average Renters’ Credit (all recipients): -$95
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$127
Stevens
Change in Renters’ Credits: -$34,166
Change in number of participating households: -19
Change in average Renters’ Credit (all recipients): -$75
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$107
Swift
Change in Renters’ Credits: -$59,552
Change in number of participating households: -34
Change in average Renters’ Credit (all recipients): -$113
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$125
Todd
Change in Renters’ Credits: -$93,608
Change in number of participating households: -89
Change in average Renters’ Credit (all recipients): -$73
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$92
Traverse
Change in Renters’ Credits: -$16,005
Change in number of participating households: -12
Change in average Renters’ Credit (all recipients): -$102
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$133
Wabasha
Change in Renters’ Credits: -$66,614
Change in number of participating households: -48
Change in average Renters’ Credit (all recipients): -$62
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$74
Wadena
Change in Renters’ Credits: -$63,228
Change in number of participating households: -1
Change in average Renters’ Credit (all recipients): -$88
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$115
Waseca
Change in Renters’ Credits: -$154,028
Change in number of participating households: -96
Change in average Renters’ Credit (all recipients): -$121
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$153
Washington
Change in Renters’ Credits: -$1,401,091
Change in number of participating households: -622
Change in average Renters’ Credit (all recipients): -$123
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$161
Watonwan
Change in Renters’ Credits: -$56,853
Change in number of participating households: -70
Change in average Renters’ Credit (all recipients): -$78
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$101
Wilkin
Change in Renters’ Credits: -$15,638
Change in number of participating households: 12
Change in average Renters’ Credit (all recipients): -$100
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$87
Winona
Change in Renters’ Credits: -$348,319
Change in number of participating households: -221
Change in average Renters’ Credit (all recipients): -$105
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$143
Wright
Change in Renters’ Credits: -$610,019
Change in number of participating households: -405
Change in average Renters’ Credit (all recipients): -$95
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$129
Yellow Medicine
Change in Renters’ Credits: -$42,689
Change in number of participating households: -29
Change in average Renters’ Credit (all recipients): -$87
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$112
Unknown/Other
Change in Renters’ Credits: -$1,096,978
Change in number of participating households: -856
Change in average Renters’ Credit (all recipients): -$86
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$127
State Total
Change in Renters’ Credits: -$42,495,980
Change in number of participating households: -23,050
Change in average Renters’ Credit (all recipients): -$103
Change in average Renters’ Credit (households including seniors and/or people with disabilities): -$131
[1] Minnesota Budget Project analysis of Minnesota Department of Revenue, Property Tax Refund Division, 2009 Property Tax Refund claims filed in 2010 and 2008 Property Tax Refund claims filed in 2009.
[2] The starting point for calculating the Renters’ Credit is a percentage of the rent paid, which is considered the renter’s share of property taxes. In 2010, this percentage was reduced from 19 percent to 15 percent. The differences between 2009 and 2010 data reflect the policy change, as well as changes in the characteristics of those filing for the property tax refund.