ARRM's Daily Dispatch

Tax Tips: 2017 Renter's Credit

Renters need a completed CRP in order to apply for the property tax refund. As a property owner, manager or operator, you are required to issue a Certificate of Rent Paid (CRP) to each person who rented from you during the year. You must give each renter a CRP by January 31 of each year—as long as property taxes (or payments in lieu of property taxes) are made on the property.

Adult Foster Care

If your waiver program/adult foster care facility is exempt from property tax, you do not need to give your residents CRP forms. People living in tax-exempt facilities are not eligible for the property tax refund.

Requirements

Individuals in group residential housing programs are considered to be residing in a residential facility if a portion of their assistance comes from supplemental security income (SSI) or Minnesota Supplemental Aid (MSA)/Group Residential Housing (GRH). The housing must have state and/or federal waivers for housing and other services for persons at risk of needing nursing home services, including persons participating in the adult foster care program.

Individuals who have no income other than SSI and /or MSA/GRH are not eligible for rent refunds. Do not issue CRPs to them.

Individuals who have other income are eligible only if some or all of that income goes to pay their rent. If none of it is used for rent, then they are not eligible. Do not issue CRPs to them.

However, residents with other income, such as Social Security (other than supplemental security income), wage income or any other income other than supplemental assistance grants, may be eligible for a rent refund - as long as some or all of that income goes to pay their rent.

Instructions for Completing Form CRP

Complete the identifying information at the top of CRP for each qualifying resident and follow the instructions below:

• Above Line A: Check the appropriate box to indicate “Adult Foster Care.”
• Line B: Enter the amount of GRH payments received on behalf of the renter. The resident will need this information to apply for the refund.
• Line 1: For rent paid in 2017, all persons living in an adult foster care setting or a similar waiver program are deemed to have paid $760 per month for rent. Multiply the number of months, or fraction of months, the individual lived in the residence by $760 and fill in the result. (The determination that rent is a fixed amount resulted from a 2001 law change. This fixed dollar amount will be annually adjusted for inflation.)
• Line 2 is 17 percent (0.17).
• Line 3 is Line 1 times Line 2.
• Sign and date the form, and include your phone number.

Assisted Living

If your assisted living facility is exempt from property tax, do not give your residents CRP forms. People living in tax-exempt facilities are not eligible for the property tax refund.

Completing the CRP form for Assisted Living Facilities (ALFs)

If payments from residents include amounts for non-rental services, use this alternative method to determine the correct amounts to place on Lines 1 and 3:

• Determine the total property tax paid on the facility.
• Divide that amount by the number of rental units, and put the result on Line 3 of the CRP form.
• Divide the amount from Line 3 by 0.17 (the percentage of rent that is considered to be property tax).
• Enter the result on Line 1 of the CRP form.

Example – Alternative Method for Completing the CRP Form

A resident lives in a 50-unit assisted-living complex. The property tax for 2012 on the complex was $85,000.

1. Divide the total property tax by the number of units ($85,000 / 50 = $1700), and enter the result on Line 3.
2. Divide the result in step 1 ($1700) by 0.17 (the percentage of rent that is considered to be property tax): $1700 / 0.17 = $10,000. Enter this amount on Line 1. This result is considered the resident’s annual rent.

If the resident lived in the facility for less than the full year, multiply the result from Step 1 by the percent of the year that the resident occupied the unit before continuing with Step 2.

Note: The amount listed on Line 1 of the CRP as rent paid by the resident must not exceed the total amount actually paid by the resident.

If this calculation does not result in what appears to be a reasonable room rent, please contact Minnesota Department of Revenue for assistance. Examples of unreasonably low rent might occur in new buildings where the property tax is based on the value of the land without improvements, or buildings that make payments in lieu of property taxes.

ICF

Multiply the number of months the resident resided in the facility by $490.  Enter the result on line 1. You are not required to issue a CRP for short-term or transitional care.

If you need help filling out a Certificate of Rent Paid (CRP) or a Property Tax Refund Return (Form M1PR), call the general assistance number at (651) 296-3781 or 1-800-652-9094.

If you have questions, feel free to contact Barb Turner at bturner@arrm.org or 651-291-1086 ext. 3.

--Barb Turner, Sr. Director of External Affairs

Expanding Your Potential Workforce: Tips for hiring minors

One strategy providers can turn to for easing both short- and long-term staffing pains is underutilized populations, such as minors.

While these untapped workforce pools can have certain restrictions or unique characteristics (often  why they’re underutilized in the first place), those can be managed or worked around to fill valuable staff roles that also reduce the strain on the rest of the workforce. Understanding those restrictions and the best practices for managing those makes these potential employees more accessible.

Hiring Minors Toolkit

The ARRM Workforce Solutions Committee is launching the first in a series of toolkit resources for recruiting and employing underutilized workforce populations, beginning with minors. This resource, located at www.arrm.org in the Members Area, contains a wealth of information around what under-18 employees can and cannot do in home and community-based service (HCBS) settings, as well as labor laws that govern their employment. It also contains helpful resources around the unique recruitment, training and supervision they require.

Top Three Things to Know About Hiring Minors

There are several different factors to consider when employing minors, but a few stand out.

Job function limitations

Staff under the age of eighteen are actually able to perform a majority of the work of a typical DSP but there certain clear restrictions that should be known by the employer and acknowledged by the employee and their fellow co-workers. These include not handling medications and not operating certain equipment while on the job, such as power hydraulic lifts and driving vehicles. Ensure you know the full range of limitations and make those clear to the employee.

Employment boundaries

Several labor laws apply across industries, placing limitations on when and for how long a minor can work. For example, whether the employee has school the next day or not changes how late they may be scheduled to work. All labor law regulations are clearly listed on state and federal Department of Labor websites.

Additional incentives to work

Remember that many sixteen- and seventeen-year-olds are beginning to think about college applications. Regardless of the school or program they are considering, they know admissions officers will be looking at more than just their transcripts. HCBS employers can offer positions with significant skills and experience development opportunities, as well as a demonstration of giving back to the community (while also getting paid!).

Why Hire Sixteen and Seventeen-Year-Olds?

You might wonder, “Why deal with the specialties of employing minors, especially since they may be likely to become less available when they graduate high school?” Reaching out to high school students to expose them to the field of community-based services and its potential career tracks helps increase the number of people who may consider the field as a career option, as opposed to nursing, other health care fields or entirely different sectors all together.

Similarly, while certain regulations decrease the flexibility of job functions a minor may be able to perform, as an additional staff person they can increase the flexibility and effectiveness of more senior DSPs who can more comfortably focus their attention where it’s most needed.

Access and download the Hiring Minors Toolkit, produced by the ARRM Workforce Solutions Committee

Are you currently employing minors? Share your tips or questions in the comments below.