Homestead

The Homestead Exclusion

The State of Minnesota maintains a benefit program for people who own and occupy their home called the Homestead Market Value Exclusion. This program has two main benefits for qualifying homeowners:

  • It reduces the Taxable Market Value of the property (for properties valued under $414,000 only), thereby lowering taxes, and
  • It is one of the qualifying factors for homeowners to receive the State of Minnesota Property Tax Refund.

For more on Homesteads, please see Minnesota Statute 273.124.

Eligibility

To be eligible to receive the Homestead Exclusion, you must (all three requirements below must apply):

  1. Be one of the owners or a qualifying relative of one of the owners of the property
  2. Occupy the property as your primary residence
  3. Be a Minnesota resident - Qualifications for being a Minnesota resident for homestead purposes:
    1. You are registered to vote in Minnesota.
    2. You have a valid Minnesota driver's license.
    3. You file a Minnesota income tax return as a Minnesota resident.
    4. You list property in Minnesota as your permanent mailing address.
    5. Your children, if any, attend school in Minnesota.

The following people usually qualify to receive the Homestead Exclusion:

  • Owners/occupants
  • Certain relatives of the owner Members of family farm corporations or farm partnerships Property held by a trust if specific requirements under the law are met
    • Some relatives of the owner may qualify for a homestead exclusion if they occupy the property as their primary residence. The relatives of the owner must be a:
      • aunt
      • brother
      • brother-in-law
      • child
      • daughter-in-law
      • grandchild
      • grandparent
      • nephew
      • niece
      • parent
      • parent-in-law
      • sister
      • sister-in-law
      • son-in-law
      • stepchild
      • stepparent or
      • uncle
    • In certain cases, members of family farm corporations and farm partnerships may qualify. Other corporations or LLCs or partnerships do not qualify.

Applying for Homestead

It is the owner’s responsibility to ensure a property that is eligible for homestead is receiving it. When a property transfer occurs, our office may send an application to apply for homestead. We may also send a homestead application if we are verifying that a property continues to qualify.

Our office notifies property owners of homestead status on the Notice of Valuation and Classification that is mailed each spring as well as on the Truth in Taxation form mailed in the fall.

If you would like to apply for homestead, please complete the appropriate form and mail it to us or bring it to our department in the Le Sueur County Courthouse. If you have any questions on which form to complete, contact us at 507-357-8213 or by emailing Joanne Corrow. Homestead applications are due by December 15 of the year of the assessment, but occupancy and ownership must be in place by December 1 of the assessment year.

Applications

Agricultural Homesteads

There are different requirements to receive homestead for agricultural land. Please contact our office at 507-357-8213 or by emailing Joanne Corrow for more information. Additionally, there is a Special Agricultural Homestead Program when property owners do not live on their farm. There are numerous requirements for this program, please see the Special Agricultural Homestead Fact Sheet (PDF) or contact our office for more information.

Blind Disable Homestead (1b)

This special homestead classification provides a reduced class rate for homestead property of any person who qualifies as blind or as permanently and totally disabled. The Class 1b blind/disabled homestead is different than other homesteads because the qualification is specific to a person (and the disabling condition), rather than being predicated on the use of the property. As a result, 1b homestead classification follows the blind/disabled individual from one property to another. Class 1b is not an exemption from property taxes; it is a reduction in taxes.

When & How to Apply

You need to apply for this special homestead classification by October 1.