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1. What is a homestead exclusion?

A homestead exclusion is a statutory reduction in the amount of value subject to tax.

2. Why should I file for homestead?

Property taxes are lower on owner-occupied property than they are on other residences, commercial property or apartments.

3. How does a property I own qualify for a homestead exclusion?

To qualify for a homestead exclusion, you must meet all of the following requirements:

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 child or stepchild, parent or stepparent, grandchild, grandparent, brother, sister, aunt, uncle, niece, or nephew. This relationship may exist through marriage.

You must occupy the property as your primary place of residence.

You must be a Minnesota resident. (If a residential class property is the primary residence of a qualifying relative of an owner, it is not necessary for the owner to be a Minnesota resident.)

4. 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 exclusion will be granted. Social Security numbers will be used to determine if owners or relatives of owners have applied for more than one homestead in the state.

5. Why is my spouse's name required on a homestead application?

According to Minnesota State Statute 273.124, Subd. 13, the homestead application must be signed by each owner who occupies the property and by each owner's spouse who occupies the property. The spouse must sign even if they are not listed on the deed of record.

6. When should I apply?

As soon as possible after you purchase and move into your home. If you purchase and occupy by December 1st of any year, and make application by December 31, the following year’s property tax will reflect the homestead rates.

7. 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 1 in the year for which you are applying. This is often called a "midyear" 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 lives as his or her primary place of residence.

8. Are the homestead exclusions on all properties the same?

No. The homestead exclusion is based on a number of factors.

• First, the homestead exclusion decreases as the property’s market value increases.
• Second, not all properties are eligible for a full (100%) homestead exclusion.
• Third, there are other exclusions and or credits attached to homesteaded property that may also affect the amount of the homestead exclusion received.

9. How often do I have to apply for the homestead exclusion?

After the initial approval, the homestead classification will remain until the property is sold or the owner or the qualifying relative no longer uses it as a primary place of residence. The owner must notify the assessor within 30 days of any change in homestead status, i.e. the home sells, renters move in, relatives move out, etc. Upon the sale of the property, a Certificate of Real Estate Value must be filed with the county auditor as required under Minnesota Statute 272.115

10. What will happen if I fail to comply with the homestead laws or file a false homestead?

If the assessor is not notified within 30 days that the property has been sold or is no longer being used as a primary place of residence, the homestead will be removed and penalties will be imposed.

Falsifying a homestead is punishable by imprisonment for not more than one year or payment of a fine of not more than $3,000, or both.

11. What about homestead for property owned by a trust?

Certain trusts can qualify for homestead. A Certificate of Trust must be completed and approved by the County Assessor, or the Trust must be provided for the Assessor ‘s review. Call Anoka County Assessment Services for further information at 763-324-1175.

12. Do Life Estates qualify for homestead?

Yes, as long as the life estate interest is shown on the deed, and the holder of the life estate meets all the homestead requirements.

13. Can a manufactured home receive homestead exclusion?

Yes, the owner / occupant must also apply and meet the requirements.

14. Are there Special Homesteads for the Blind and Disabled?

Minnesota Statute 273.13 subdivision 22 Class 1b provides a reduced class rate for homesteads of persons who are blind or permanently and totally disabled.

The application is due by October 1st. Download the Blind Disabled Homestead Application.

15. Is there anything else I should know about homesteads?

Every homestead is unique. Some homesteads involve property held under a trust agreement. Other property is purchased with lender requirements that may affect the homestead classification. You are encouraged to contact Anoka County Property Records and Taxation with any questions you may have.