What is homestead classification and who qualifies?
A homestead classification may qualify for a market value reduction (a tax bill based on a reduced taxable value). A property that is valued at $76,000 will receive the maximum market value exclusion, this exclusion is reduced until a property value exceeds about $412,000, at which point there is no exclusion. To qualify for homestead classification and market value exclusion the property must be occupied as a person’s primary and principle place of residence for all legal purposes. In order to qualify for homestead credit you must meet all of the following requirements.
- You must be one of the owners of the property or be a qualifying relative
of one of the owners.
- You must occupy the property as your primary and principle place
of residence for all legal purposes. Token or temporary occupancy does
- You must be a Minnesota resident.
What do I have to do to get homestead classification?
To receive homestead you must comply with all the following requirements:
- You must qualify as outlined above. You will be required to show proof
of ownership and may be required to show proof of occupancy.
- All property owners or qualified relatives who changed residences during
the past year and are using it for homesteading purposes as of
December 1st must make application for homestead with their County
Assessor before December 15th.
- In the case of manufactured homes assessed as personal property, you
must establish homestead and application must be
made by May 29th of that year.
- You must provide the signatures and social security numbers of all
owners claiming homestead.
- If the property is occupied by a relative, all of the owner’s relatives
claiming homestead must sign and submit their social security
numbers on the application. Also, all of the owner’s names and
their social security numbers must be listed under the Names of the
Owner(s) section on the application.
Why must I provide my social security number?
Even though social security numbers are private information, under Minnesota Statute 273.123, Subd. 13, they must be provided before a homestead can be granted. Social Security numbers will be used with the help of the Department of Revenue to determine if owners or relatives of owners have applied for more than one homestead.
How often do I have to apply for homestead?
Once the property is granted the homestead classification, it will not be necessary for you to reapply for the classification. However, the County Assessor may at any time require you to provide an additional application or such proof, as they deem necessary to verify that you continue to meet the requirements of the homestead classification. Relatives of owners claiming homestead classification will be sent a questionnaire every year to confirm they are still living on the property, which they need to complete, sign and return in order to retain this classification. If this is not returned, the homestead classification will be removed for that assessment year.
What about homestead for property owned by a trust?
Most trusts can qualify for homestead. A Certificate of Trust must be submitted and approved by the County Assessor, or the complete signed Trust must be provided for the Assessor’s review. Call the Assessor’s Office, 218-547-7298 if you have any questions.
What will happen if I file a false homestead claim?
A property owner who obtains or attempts to obtain homestead classification for a property other than his or her primary place of residence or the primary place of residence of his or her qualifying relative is under state law subject to a fine of up to $3,000 and/or up to one year of imprisonment (Minnesota Statute 609.41). In addition the property owner will be required to pay all tax, which is due on the property based on the correct property class plus a penalty equal to the same amount (Minnesota Statute 273.124, Subd. 13).
How will I know if my homestead application has been received in the Assessor's Office?
Once your homestead application has been received, it will be reviewed. You will be sent a letter from the County Assessor with the result of our findings and the year of assessment and tax this homestead classification would affect.
What if I move?
If at any time the property is sold, or you change your primary residence, state law requires that you notify the County Assessor within 30 days. If you fail to notify the County Assessor within the 30 days, you may be required to pay the tax, which is due on the property based on the correct property class plus a penalty of the same amount.
BLIND & DISABLED HOMESTEADS
A reduced class rate for homestead property is provided for any person who:
· Is blind, or
· Is permanently and totally disabled.
See Blind/Disabled FAQ/Form
APPLYING FOR THE HOMESTEAD CLASSIFICATION
To apply for the homestead classification for a residential property or for farmland and buildings, you must complete a homestead application. To qualify for the homestead classification for a residential property, including a residence located on a farm property, you must:
- Occupy the property listed on the application as your primary and
principle residence; and
- Be one of the owners of the property or be at least one owner’s child,
stepchild, daughter-in-law, son-in-law, parent, stepparent, parent-in-law,
grandchild, grandparent, brother, brother-in-law, sister, sister-in-law,
aunt, uncle, niece, nephew; and
- Be a Minnesota resident.
Your County Assessor will determine whether you are a Minnesota resident for purposes of qualifying for the homestead application. You may be considered a Minnesota resident if all or some of the following conditions apply to you.
- You are registered to vote in Minnesota;
- You have a valid Minnesota driver’s license;
- You file a Minnesota income tax return;
- You list a property in Minnesota as your permanent mailing address;
- Your children, if any, attend school in Minnesota;
- You are not a resident of any other state or country.
State law requires that the Social Security number(s) and signature(s) of the qualifying relative(s) and the Social Security number(s) and names of the owners to whom the qualifying relative is related must be on this application. (Minnesota Statute 273.124, Subd. 13) If there is not enough space on the application for all required signatures/names and their Social Security numbers, use an extra sheet and include it with the application.
Social Security numbers are confidential information. (Minnesota 13.02, Subd. 12) Under state law your County Assessor may give them to the Minnesota Department of Revenue for use in determining whether you and the owner of the property to whom you are related have applied for the homestead classification for other properties in the state. (Minnesota Statute 273.124, Subd. 13)
A property owner who obtains or attempts to obtain homestead classification for a property other than his or her primary place of residence or the primary place of residence of his or her relative is under state law subject to a fine of up to $3,000 and/or up to one year of imprisonment. (Minnesota Statute 609.41) In addition, the property owner will be required to pay all tax, which is due on the property based on its correct property class plus a penalty equal to the same amount. (Minnesota Statute 273.124, Subd. 13)
Renewing your homestead classification
If this property is granted the homestead classification, it will not be necessary for you to reapply for the classification. However, at any time, the County Assessor may require you to provide an additional application or such proof, as they deem necessary to verify that you continue to meet the requirements of the homestead classification.
If you move…
The homestead application cannot be submitted electronically, it must be mailed. The application can be filled out from your computer and printed for mailing. Homestead Application