Minnesota Statute 273.124 and Minnesota Statute 273.13 provides a reduction to the market value, also known as the market value exclusion, to a qualifying relative or owner of a residential or agricultural property.  You do not need to apply for homestead each year, but once you have been granted homestead status, you must notify the Assessor's Office within 30 days if you sell or move out of the property. The Assessor may require additional information or a new application if they receive information that circumstances affecting your eligibility for the homestead classification have changed. It is important to be aware that falsely claiming homestead is subject to penalties under law (M.S. 273.124, Subd 13)

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Homestead Market Value Exclusion

Minnesota Statutes, section 273.13, subdivision 35, provides a homestead market value exclusion. Prior to determining a property’s net tax capacity, property classified as class 1a or 1b, and the portion of property classified as class 2a consisting of the house, garage and surrounding one acre of land, shall be eligible for a market value exclusion.

Calculation
For a homestead valued at $95,000 of less, the exclusion is 40 percent of market value, yielding a maximum exclusion of $38,000 at $95,000 of market value. For a homestead valued between $95,000 and $517,200, the exclusion is $38,000 minus nine percent of the value over $95,000. For a homestead valued at $517,800 or more, there is no valuation exclusion.

To Qualify for a homestead classification, you must:

1. Occupy the property as your primary residence;
2. be one of the owners of the property or a qualifying relative of one of the owners;
   • A qualifying relative includes the parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece of the owner, by blood or marriage.
3. be a Minnesota resident; and
4. Make a homestead application to the County Assessor (Please Note: If your property is located within the City of Marshall, please contact 507-537-6771 to file for homestead)

Agricultural Homestead:

1. A minimum of 10 contiguous, productive acres must be used to produce agricultural products in the preceding year
2. The agricultural products are defined by statute (Minnesota Statute 273.13, subd. 23)
3. The agricultural product must be produced for sale.

In order to aid your assessor, the Ag Use Verification Form is used to help classify your property in accordance with Minnesota state law.

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Special Agricultural Homestead:

A Special Agricultural Homestead gives homestead status to property owners who do not live on their farm but actively farm their land or who have a spouse, child, sibling, parent or a grandchild who actively farms the land.

Homestead status can result in lower property taxes than property that is not homesteaded. If the land is rented to a business, such as a partnership or family farm corporation, see Fact Sheet 4B, Special Agricultural Homestead Property Owned or Leased by a Qualified Entity.

You must file for the Special Agricultural Homestead application every year by December 31. it is recommended that you file the application near the end of the crop year. 

The application must be filed in each county in which homestead is requested. If the property crosses a county line, then make sure to apply in each county.

Applications

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Class 1b Blind/Disabled Homestead

The "1b" classification provides a reduced class rate for homestead property of any person who qualifies as:

a) Legally Blind (must attach a copy of a signed and approved letter or report from your eye doctor stating that you are legally blind)
OR
b)Permanently and Totally Disabled (Must attach a letter from a qualified agency certifying that you are totally and permanently disabled and receive disability payments).  

Get more information here.
Application

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Veterans Homestead Exclusion

The exclusion reduces the market value of the home that is subject to property taxes. Veterans may qualify if all are true:

• You are honorably discharged from the United States armed forces
• You have a service-connected disability rating of 70% or higher
• You own a homestead property

Get more information  here.
Applications

For questions related to your disability and the forms that are required with the application, speak with your County Veterans Service Officer or County Assessor.