Disabled American Veteran Market Value Exclusion

This program, enacted in 2008, provides a market value exclusion for property tax purposes for the homestead property of an honorably discharged veteran who has a service-connected disability of 70% or higher, as determined by the United States Department of Veterans Affairs.

What are the qualifications?

A property must be the homestead of a qualified disabled veteran in order to receive this value exclusion.

To qualify, a veteran must have been honorably discharged from the United States armed forces as indicated by U. S. Government Form DD214 or other official discharge papers and must be certified by the United States Veterans Administration as having a service-connected disability. The Assessor's Office is not responsible for determining disability status.

Qualifying veterans with 70% disability or higher are eligible for a market value exclusion of $150,000.

Qualifying veterans who are totally and permanently disabled are eligible for a market value exclusion of $300,000.

If a property qualifies for this market value exclusion, the property does not receive residential market value credit provided under MS 273.1384, subd. 1.

In case of agricultural homesteads, only the house, garage and immediately surrounding one acre of land will qualify for the exclusion. Excess land and buildings are not eligible for the valuation exclusion. The house, garage and one acre receiving the exclusion do not receive the residential market value credit. Any excess agricultural land and buildings will continue to receive the agricultural homestead credit.

How do I apply?

This application is not a substitute for a homestead application. You must apply for and be granted homestead on a qualifying property prior to applying for this market value exclusion.

Application must be made by July 1 to qualify for the exclusion on the current year's market value for taxes payable the following year.

Veterans with a disability rating of 70% or higher will have to apply annually.

Veterans who are totally and permanently disabled do not have to apply after the initial approval. The property will continue to qualify for the value exclusion until there is a change of ownership or use of the property. A surviving spouse can also continue to qualify for this provision for two assessment years following the death of a qualifying veteran.

What information do I have to supply?

Qualifying veterans may supply the United States Government Form DD214 or other official military discharge papers, as well as documentation from the Veterans Administration may also provide a letter that encompasses all the required information (both discharge and disability). If you need this documentation, please contact the Veterans Administration.

Managed Forest Land

What is it?

The Department of Revenue (DoR), County Assessors (CA), and the Division of Forestry (DoF) have partnered to offer Minnesota's forest landowners an additional option to reduce their property tax burden. Forest landowners are now able to participate in the 2C Managed Forest Land tax program

Who is eligible?

Property owners who own property that is unplatted real estate that is rural in character, is not used for agricultural purposes and is not improved with a structure. The property must have a qualifying forest management plan in place and the property can not be enrolled in the Sustainable Forest Incentive Act (SFIA).

The property must be no less than 20 acres in size and total enrolled acreage is limited to 1,920 acres statewide. The forest management plan must be developed by a DNR approved forest management plan write within the last ten (10) years.

A property that is improved with a structure that is not a minor ancillary non-residential structure (i.e. small shed or other primitive sturcture) or an improved building side that provides water, sewer or electric hookups, will be split classed, with ten (10) acres being assigned to the structure. Property receiving this classification cannot be enrolled in any other program. The DNR must confirm that the property qualifies and will annually verify that the property continues to qualify for the classification.

What information do I have to supply?

Along with a  completed application you must provide a copy of your property tax statement for each parcel of land you list on the application. You must also provide a copy of your management plan that has been developed or updated by the DNR. The plan must include clear and accurage information, including maps that clearly define what property you want to include in the classification.

Is there an application deadline?

Yes, your application and all required attachments must be sent to the County Assessor no later than May 1 for taxes payable the following year. If all the required information is not provided, your application will be delayed or denied.

Non-Profit Community Services Organizations

The 2008 Legislature created a new classification for community service organizations such as VFW's, Elks, American Legions, Knights of Columbus, and other similar organizations.

Who is eligible?

Nonprofit community service oriented organizations that make charitable contributions and donations at least equal to the organization's previous year's property taxes and that allow the property to be used for public and community meetings or events at no charge may be eligible for the new classification.

Examples of qualifying "public and community" groups that must be allowed to hold events free of charge would include:

• Neighborhood groups
• Athletic Assocations
• Other non-profit organizations
• Public meetings sponsored by governmental departments, agencies, etc.
• Youth groups
• Religious/faith organizations
• School groups

Any private events and certain other groups/activities can be charged a fee to utilize a organization's facilities. Examples of private events/groups that can be charged a fee to use the facilities include:

• Weddings
• Family reunions
• Private parties (i.e. office holiday parties & individual parties)
• Businesses
• For-profit organizations

Definitions

A "nonprofit community service oriented organization" is defined as any corporation, society, association, foundation or institution organized and operated exclusively for charitable, religious, fraternal, civic or education purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (10) or (19) of the Internal Revenue Service Code of 1986, as amended through December 31, 1990.

"Charitable contributions and donations" are defined as having the same meaning as lawful gambling purposes under Minnesota Statutes, section 349.12, subd. 25, excluding those purposes relating to payment of taxes, assessment, fees, audting costs and utility.

"Revenue-producing activities" include but are not limited to property or that portion of a property that is used as an on-sale intoxicating liquor establishment, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under Chapter 3949, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises.

How do I apply?

Complete the application and submit it to the County Assessor along with all required documentation by May 1st of each calendar year.

For further assistance, please contact the Assessor’s Office
at 635 2nd St SE, Milaca, MN, 56353 or call (320) 983-8311 or (888) 280-8311.