Every year we play this fun game where we give the state and the federal government a whole lot of money. We pay for all sorts of good stuff that I won’t mention here because I try not to irritate my readers and if we’ve paid close attention to the rules we can get some of it back.

Property tax rebate: My understanding is that this will be the same type of rebate we had in 1998 for 97 taxes. It is a property tax rebate you will claim on your income tax returns. It applies to property taxes paid by homeowners and renters. You will need to attach the proper forms to your 1998 state income tax forms which are due in April. The rebates will come as part of an income tax refund or will be applied to whatever state taxes are owed. You MUST submit either your 1998 property tax statement or a special statement that some counties plan to issue. Line 1 of the property tax statement will show the taxes paid. Twenty percent of that figure will be the amount of the rebate. For us it will be $2,800 x 20% = $560 to Macey’s. ( Family rule - rebates need to be reinvested in the local economy. ) The 1999 Truth in Taxation statements you’ve recently received will not suffice.

To get you rebate, attach a copy of the tax statement to the Minnesota M-1 income tax return. Renters must attach a copy of their Certificate of Rent Paid, which landlords send out. Those who rented at more than one apartment in 1998 must get a separate certificate for each location. I believe that the 1998 formula will be similar to 1997’s where the rent certificates indicated that 18% of the rent was estimated to pay the property taxes and that the renters are eligible to a rebate of 20% of that amount or 3.6% of the rent paid in 1998. Renters who are claimed as dependents on someone else’s federal income tax form, such as college students, do not qualify.

Questions and Answers:

• Who is eligible: Homeowners who paid property taxes in 1998 and renters. Cabin taxes are eligible only if the property was a principal residence.
• If you don’t have a copy of your tax statement call your county auditor and they will mail one out. I called for a couple of folks last year and they were real good about it.
• Will the rebate be subject to income taxes? Not state income taxes. The rebate will not increase federal income tax liability for filers who claim the standard deduction. Those who itemized deductions in 1998 will see an increase in their federal liability.
• Tax rebate questions? Call 651-296-3781(metro) or 1-800-652-9094. 7am.-9pm. Monday through Friday and 9am.-4pm. Saturday. Web site: www.taxes.state.mn.us
• Electronic filing will be the quickest way to get your money back.

Please contact your accountant or my guys at Foreman & Airhart, ask for Mark Foreman or Wade Nicholson 612-948-1844.

See following page for more on tax deductions & rules.