Homestead and Property Tax Refund Project

About the Program

Category: Civic Education and Public Information (Best in Category)

Year: 2023

In Minnesota, homeowners who participate in the Homestead Market Value Exclusion Program receive tangible benefits related to property and income taxes. Homesteading can save residents money on their property taxes. It also qualifies them for Minnesota’s Property Tax Refund Program. Yet many eligible homeowners don’t homestead, leaving millions of refund dollars unclaimed annually statewide. To better understand this problem, Hennepin County created a multi-departmental team to evaluate homesteading in its jurisdiction and increase participation. The team analyzed Hennepin County’s assessment data and identified 26,000 potentially homestead-eligible properties. This included using the Government Alliance on Race and Equity’s Racial Equity Impact Tool to uncover disparities in the homestead program. As a result of this work, they discovered that race, language, income and geography impact application rates. To maximize homestead participation, it would be essential to reach all eligible homeowners and remove barriers. To inform eligible homeowners and encourage them to apply, the county sent two notices with homestead benefit and application information, and held seven community events at area libraries. These efforts resulted in a 20% response rate and more than 5,800 new homesteaded properties.