Minnesota offers a Homestead Market Value Exclusion for people who own and live in their home as their primary residence. As long as you purchase and occupy your home by December 1 and file by December 15, your property will be classified as Homestead for taxes payable the following year. There is no filing charge, and you only have to do it once. It remains in effect as long as you own and maintain the property as your primary residence.
You should have received the necessary paperwork at closing... application, copy of deed and CRV (Certificate of Real Estate Value)... as well as information on where to file (such as at your City Hall). If your property is occupied by a qualifying relative such as a son or daughter or parent, it may also qualify for homestead even if you don't live there yourself... in this case you would also need to submit a Non-Occupant Co-Owner/Relative form.
What are the benefits of homestead status?
- It reduces the Taxable Market Value of the property for properties valued under $414,000, thereby reducing your taxes
- It is one of the qualifying factors for homeowners to receive the Minnesota Property Tax Refund
- It could save you money on your insurance, as insurance rates are typically lower for principal residences
I remember our son called a couple years after they bought their first home, concerned that their taxes had gone up. They bought at the end of December so had until December of the following year to file for taxes payable the next year... they forgot about it and paid the penalty of higher taxes for a year.
If you can't find your paperwork needed for filing or aren't sure where to file, contact your Realtor or closer. For more information on Homesteads, see Minnesota Statute 273.124.