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23 <br /> <br />application with the local county assessor. Once approved, homeowners do not need to apply <br />again. The property remains homesteaded until it is sold, transferred, or no longer used as the <br />owner’s homestead. <br /> <br />Once approved for homestead status, homeowners can benefit from the lower class 1a tax <br />rate. 67 The Residential Homestead Classification reduces the property tax classification rate on <br />the first $500,000 of market value to 1.00%. Any market value exceeding $500,000 has a class <br />rate of 1.25%. <br />Certain blind and/or disabled owner-occupants may qualify for the even lower class 1b <br />rate.68 The Special Homestead Classification reduces the property tax classification rate on the <br />first $50,000 of market value to 0.45%. Any market value exceeding $50,000 is treated the same <br />as class 1a property. To receive the classification, eligible homeowners must apply with the <br />county assessor.69 Once approved, the taxpayer does not need to apply again. Unlike other <br />classifications, the class 1b homestead follows the individual from one property to another. <br /> <br />Homestead status also allows taxpayers to benefit from the Homestead Market Value <br />Exclusion.70 The exclusion reduces the taxable value of homesteads with market value of <br />$76,000 or less by 40%, yielding a maximum exclusion of $30,400. For homesteads valued <br />between $76,000 and $413,800, the exclusion is reduced by 9% of the value over $76,000. <br />Homesteads that exceed $413,800 in value do not qualify for the exclusion. <br /> <br />Alternatively, the Disabled Veteran Homestead Valuation Exclusion offers market value <br />exclusion for homestead properties of honorably discharged veterans with service-connected <br />disabilities with disability ratings of 70% or more.71 Surviving spouses and primary family <br />caregivers can also receive the benefit in some circumstances. Depending on the disability rating, <br />veteran homesteads qualify for market value exclusions of up to $150,000 or up to $300,000. <br /> <br />67 MINN. DEP’T OF REVENUE, PROPERTY TAX ADMINISTRATOR’S MANUAL (2017), module 3, at 5. <br />http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/ptamanual_module3.pdf <br />68 MINN. DEP’T OF REVENUE, PROPERTY TAX ADMINISTRATOR’S MANUAL (2017), module 3, at 6. <br />http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/ptamanual_module3.pdf <br />69 MINN. DEP’T OF REVENUE, PROPERTY TAX ADMINISTRATOR’S MANUAL (2017), module 3, at 7. <br />http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/ptamanual_module3.pdf <br />70 MINN. DEP’T OF REVENUE, PROPERTY TAX ADMINISTRATOR’S MANUAL (2017), module 2, at <br />143. <br />http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/ptamanual_module2.pdf <br />71 MINN. DEP’T OF REVENUE, PROPERTY TAX ADMINISTRATOR’S MANUAL (2017), module 2, at <br />124. <br />http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/ptamanual_module2.pdf