WHAT IS HOMESTEAD CREDIT AND WHO QUALIFIES?

A homestead credit is a statutory reduction to the general 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 or temporary occupancy does not apply.
• You must be a Minnesota resident.

Your County Assessor will determine whether you are a Minnesota resident for purpose of the homestead classification.  You may be considered to be a Minnesota resident if all or some of the following apply to you:

• You have a valid Minnesota driver's license
• You are registered to vote in Minnesota
• You file a Minnesota income tax return
• You list a property in Minnesota as your permanent mailing address
• You are employed by a business located in Minnesota
• You are not a resident of any other state or country

WHAT DO I HAVE TO DO TO RECEIVE A HOMESTEAD CREDIT FOR MY PROPERTY?

To receive homestead you must comply with all of the following requirements:

• You must qualify as outlined above.  You may be required to show proof of ownership.
• All property owners or qualified relative who changed residences during the past year must have occupancy and ownership by December 1 and make application for homestead with the County Assessor before December 15.
• In the case of manufactured homes assessed as personal property, you must establish homestead and application must be made by May 29 of that year.
• You must provide the signatures and social security numbers of all occupants and their spouses.
• If the property is occupied by a relative, all 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 addresses must be listed.
• Property currently or previously classified as Seasonal Recreational for the owner does not qualify for a relative homestead.  Contact your County Assessor for more information.

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, unless there is a change in ownership of any kind.  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.

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.

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 $3000 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).

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 Assessor within the 30 days, you may be required to pay the tax, which is due on the property based on the correct property classification plus a penalty of the same amount.

BLIND AND DISABLED HOMESTEADS

A reduced class rate for homestead property is provided for any person who:

• Is blind, or
• Is permanently and totally disabled

*For more information, please contact the Property Valuation & Classification office.