2010 Renters’ Credit cuts felt across Minnesota

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

About Minnesota Budget Project

Minnesota Budget Project
The Minnesota Budget Project is a research and advocacy organization that pursues policy solutions so that all Minnesotans can thrive, regardless of who they are or where they live. Established more than 25 years ago, the Minnesota Budget Project is a nonpartisan project of the Minnesota Council of Nonprofits.

[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.