Regular/Relative Homesteads
What is a homestead credit and who
qualifies?
A homestead credit is a statutory
reduction in the general property tax for certain property that is
occupied as a person's primary place of residence. 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 place
of residence. Token occupancy does not qualify.
- You must be a Minnesota resident.
What do I have to do to get homestead credit?
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.
- You must file a completed homestead application as
provided by the Assessor's Office. If a non-homestead property
is purchased, or if you homestead your existing property after January 2nd
but before December 1st of a given year, application must
be made by December 15th of that year.
- You must provide the names and social security
numbers of all owners and/or relatives of the owners of the property
claiming homestead.
- All of the owners and, if the property is occupied
by a relative, all of the owner's relatives claiming
homestead must sign the application.
- A Certificate of Real Estate Value must be filed whenever real estate is sold for more than $1,000. If a CRV is not
filed, the homestead cannot be granted pursuant to M.S. 272.115.
Why must I provide my social security number?
Even though social security numbers are
private information, under M.S. 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 or your qualifying relative 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 to requirements of the
homestead classification.
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 (M.S. 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 (M.S. 273.124, Subd. 13).
What if I move?
If at any time the property is sold, or
you or your qualifying relative 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 & Paraplegic Homesteads
A reduced class rate for homestead property is provided for
any person who is blind or permanently disabled, and meets specific disability income guidelines.
Contact the County Assessor for more information about this program.
Special Ag “Actively Farming” Homesteads
In 1999, legislation was passed which
allowed a property owner to receive an “actively farming” homestead on a
property they did not live on, under certain limited conditions. In
order to receive this special agricultural homestead ALL
of the following conditions must be met.
- The owner or qualifying relative of the owner must be personally
actively farming the agricultural property.
- The owner of the agricultural property must be a Minnesota resident.
- Neither the owner nor their spouse may claim another agricultural
homestead in Minnesota.
- The owner or qualifying relative does not live farther than four
townships or cities from the agricultural property.
Persons engaged in actively farming must
participate in making day to day farm decisions. They must
participate in the day to day labor, administration, and management of the
farm. They must assume all or a portion of the financial risks, and they
must participate in any profits or losses.
Application must be made annually for this special agricultural
homestead. Application must be made to the County Assessor by
December 15th for taxes payable in the following year. After
initial application is made and granted the Assessor’s Office will
annually send out, in late fall, an application which must be
returned by December 15th.