The O'Neil Group wants to remind you that if you purchased a property between Dec. 1, 2018, and Nov. 30, 2019, and it is your primary residence, then you likely qualify for homestead classification. Homestead is a Minnesota property tax classification for residential properties, and qualifying owners may receive a market value exclusion which may reduce property taxes!
What is it?
“Homesteading” can be found in 46 states – including Minnesota. Although it varies slightly from state to state, homesteading builds a legal fence around homeowners’ primary residences to keep out creditors. In the event that you fall on rough times or default on some kinds of debt (like a car loan), the homestead classification puts a limit on creditors who may want to take your property (read more at “How Stuff Works”).
Why do it?
The homestead classification doesn’t just limit creditors. Most states also offer property tax exemptions for homestead properties. Remember how property taxes work: counties and cities assess the value of your home, then apply a tax rate to the assessed value. But if your home is classified as a homestead, a certain dollar amount or percentage of that assessed value is exempted from property taxes. It can be a great way to save!
Additionally, if you’re a senior, a veteran, or are disabled, you may also qualify for other exemptions. Read more about Minnesota’s homestead perks here.
How do I Apply?
In Minnesota, applications to homestead are due December 15! The process is fairly simple, giving you ample time to apply by the due date. So if you bought your home after December 1, 2017, you can download your county application here:
Have copies of your closing paperwork, and be prepared to provide specific information about yourself, your home, and any additional owners on your deed. Submit the application to your county assessor, and you should be set!