Homestead Market Value Exclusion
What is the Homestead Market Value Exclusion?
The Homestead Market Value Exclusion is a statutory reduction to the taxable market value for certain property that is occupied as a person’s primary place of residence.
How does a property I own qualify for the Homestead Market Value Exclusion?
You must be one of the owners of the property or be a qualifying relative of at least one of the owners. To be a qualifying relative of the owner, you must be the owner’s son, son-in-law, daughter, daughter-in-law, stepchild, parent, parent-in-law, stepparent, grandchild, grandparent, grandparent-in-law, sister, sister-in-law, brother, brother-in-law, aunt, uncle, nephew or niece.
You must occupy the property as your primary residence.
You must be a Minnesota resident. (If the property is the primary residence of a qualifying relative of an owner, it is not necessary for the owner to be a Minnesota resident).
What do I have to do to receive the Homestead Market Value Exclusion for my property?
To receive the Homestead Market Value Exclusion, you must comply with all the following requirements:
- You must qualify for homestead as outlined above. You will be required to show proof of ownership and may be required to show proof of occupancy.
- You must file an initial homestead application with Lake County Assessor’s Office.
- You must provide the names and Social Security numbers of all owners of the property, and if the property is not owner occupied the names and Social Security numbers of the owner’s relatives who occupy the property as their primary place of residence.
- All of the owners and, and if the property is not owner occupied, all of the owner’s relatives occupying the property must sign and initial the homestead application.
Why must I provide my social Security number?
Even though Social Security numbers are private information, under Minnesota State law they must be provided before a Homestead Market Value Exclusion will be granted. Social Security numbers will be used to determine if an owner or relative of owners have applied for more than one homestead in the state.
Can I file for homestead on more than one property?
To be eligible for full homestead benefits, you must meet all of the qualifications for homestead on or before January 2 in the year for which you are applying.
You may also be eligible for full homestead benefits if you meet all of the qualifications for homestead on or before December 31 in the year for which you are applying. This is often called a ‘mid-year’ homestead.
In addition to your own homestead, you may be able to obtain a homestead for any property you own in which a qualifying relative occupies the property, the owner must notify the assessor within 30 days of change. Upon the sale of a property a Certificate of Real Estate Value must be filed with the county auditor as required under Minnesota Statute 272.115.