In Minnesota, many homeowners can qualify their primary residences for homestead status. By classifying a piece of property as a homestead, the property may qualify for a reduced classification rate, a reduced taxable market value, a property tax refund, and/or other special program eligibility.
To qualify for homestead status, the following criteria must be met:
- The applicant must be an owner of the property;
- The applicant must occupy the property as their primary residence; and
- The applicant must be a Minnesota resident.
A homestead classification can be sought as soon as a person takes ownership of a piece of property and meets the criteria above. An application for homestead is made to and approved by the County Assessor in the county where the property is located. For most counties, an application can be found on the County’s website.
This classification can be applied for any time during the year; however, if the application is made by December 15th and then approved, property taxes payable in the following year will reflect the classification rate.
Homestead classification often comes up in the estate planning context when a revocable trust is used and a grantor’s home is titled into the trust. When this happens, homestead classification needs to be re-applied for on the piece of property since the property now has a new owner, the trust.
For more details on whether your Minnesota piece of property qualifies for homestead status, contact your County Assessor.