Applying for the Homestead Classification
To apply for the homestead classification for your residence, you must fill out a Homestead Application. To qualify for the homestead classification you must:
- Occupy the property listed on the application as your primary residence
- Be one of the owners of the property listed on the application
- Be a Minnesota resident
Minnesota Residents
Your County Assessor will determine whether you are a Minnesota resident for purposes of the homestead classification. You must be considered to be a Minnesota resident if all or some of the following conditions apply to you:
- You are registered to vote in Minnesota
- You have a valid Minnesota driver’s license
- You file a Minnesota income tax return
- You list a property in Minnesota as your permanent mailing address
- You are employed by a business located in Minnesota
- Your children, if any, attend school in Minnesota, and/or
- You are not a resident of any other state or country
State law (MS273.124, Subd. 9 & 13) requires that the Social Security numbers and signatures of each occupant who is listed as an owner of the property, the social security number of the owner’s souse who occupies the property must also be furnished along with the owner’s. In either case, the application must also be signed by each owner and his/her spouse who occupies the property. If there is not enough space for all required signatures and Social Security numbers, please attach a separate piece of paper with them to the application.
Social Security numbers are confidential information. Under state law (MS 273.124, Subd. 13) they may be given by your County Assessor to the Minnesota Department of Revenue to determine whether you or the owner of the owner of the property to whom you are related have applied for the homestead classification for other properties.
Penalties
A property owner who obtains or attempts to obtain homestead classification for a property other than his or her primary place of residence or the primary place of residence of his or her relative is under state law subject to a fine up to $3,000 and/or up to 1 year of imprisonment (MS 609.41) In addition, the property owner will be required to pay all tax which is due on the property based on its correct property class plus a penalty equal to the difference between the tax based on the homestead classification and that based on the property’s correct class (MS 273.12, Subd. 13).
Do You Own Another Property In Which Your Relative Lives?
In addition to your own homestead, you may be able to obtain homestead classification for property you own in Minnesota in which your relative lives as his or her residence. To receive this kind of homestead classification, the property must be the residence of any of the following: child, stepchild, daughter-in-law, son-in-law, parent, step-parent, parent-in-law, grandchild, grandparent, brother, brother-in-law, sister-in-law, aunt, uncle, niece, or nephew. For further information please see ***Relative Homestead Classification * section.
Moving
If at any time you sell the property or change your primary residence, state law requires you to notify the County Assessor within 30 days. If you fail to notify the Assessor within the 30 days, you will be required to pay the tax which is due on the property based on its correct property class, plus a penalty.
