SF3810

Purpose

Introduce a ten-year homestead property tax exemption for certain residential properties, starting with assessment year 2027, to reward long-term ownership and continuous use of a home as a primary residence.

Scope of eligible property

• Applies to properties classified as class 1a or 1b under Minnesota Statutes, section 273.13, subdivision 22.

Eligibility criteria

• The property must be owned and occupied as a homestead by the same owner for at least ten continuous years before the initial exemption application.
• At the time of the application, there must be no unpaid or delinquent property taxes or special assessments (including penalties and interest) on the property.

Application process

• Each eligible taxpayer must file an application with the county assessor.
• The application must include:
  • Owner’s name, address, and Social Security number or individual taxpayer identification number.
  • A copy of the current year's property tax statement for the homesteaded property.
  • The initial year of ownership and occupancy as a homestead.
• The commissioner of revenue will prescribe the application form.
• The assessor must verify ten years of continuous ownership and occupancy and that there are no unpaid or delinquent taxes or special assessments due at the time of filing.
• The assessor may request additional information or documentation as needed.

Assessor’s role and verification

• The county assessor is responsible for confirming eligibility, including the ten-year continuity and the absence of unpaid taxes or delinquent assessments.

Removal of the exemption

• The exemption must be removed starting with the next assessment year if the owner sells, transfers, or otherwise disposes of the property, or if the owner no longer occupies the property as a homestead.
• The property owner must notify the assessor within 30 days if there is a change in ownership or if the property ceases to be used as a permanent residence.

Effective date and implementation

• Beginning with assessment year 2027 and each year thereafter, the exemption is in effect for eligible properties.

Significance

• Creates a long-term tax relief mechanism for qualifying homeowners who have maintained ownership and primary residence for a decade, contingent on continued compliance with tax obligations.

Relevant Terms - ten-year homestead exemption - homestead - class 1a property - class 1b property - Minnesota Statutes 2024 section 272.02 - Minnesota Statutes 2024 section 273.13 subdivision 22 - assessment year - county assessor - commissioner of revenue - ownership - occupancy - initial application - primary residence / permanent residence - unpaid property taxes - delinquent property taxes - special assessments - penalties and interest - exemption removal - sale / transfer / disposal - notify within 30 days