Homestead Classification

What does a homestead classification mean?
The residential homestead classification provides a property tax credit for property that is owned and occupied by the owner. The amount of credit is shown on your property tax statement and is deducted from your property tax bill.

What qualifications need to be met for the homestead classification?
In order to qualify for homestead classification, you must:

• be an owner of the property
• occupy the property as your primary residence
• be a Minnesota resident

You may 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
• Your children, if any, attend school in Minnesota
• You are not a resident of any other state or country

• State law requires that the Social Security number and signatures of the owners must be on this application. (Minnesota Statute 273.124, Sub d. 13) If there is not enough space on the application for all required signatures and their Social Security numbers, use an extra sheet and include it with the application. Social Security numbers are confidential information. (Minnesota Statute 13.02, Sub d. 12) They can only be used by the county assessor as provided for by state statute.
• 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 of up to $3,000 and/or up to one year of imprisonment. (Minnesota Statute 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 same amount. (Minnesota Statute 274.123, Sub d. 13)
• If you are married, your spouse must also fill in the information requested. If your spouse is absent due to marriage dissolution proceedings, legal separation, employment in another location, or is residing in a nursing home or boarding care facility, contact the assessor's office for additional information on homestead.
• IF YOU MOVE.
  If at any time the property is sold, or you change your primary residence, state law requires you to notify the county assessor within 30 days. If you fail to notify the county assessor within 30 days of the change, you may be required to pay the tax which is due on the property on its correct property class plus a penalty equal to the same amount.

How do I apply for homestead?
Applications are available here or at the Steele County Assessor's Office.

When should I apply for homestead?
After purchasing and moving into your home, you should apply for the homestead classification as soon as possible. You must purchase and occupy your home by December 1, and the homestead application must be turned into the County Assessor's Office by December 31 to be eligible for the homestead classification for taxes payable in the following year.

How often must I apply for homestead?
If your property is granted the homestead classification, it is not necessary for you to reapply for the classification.

Can I have more than one homestead?
No, you may only claim one homestead. However, if you change residences during the year, you can apply for homestead at the new residence. You must notify your County Assessor that you have changed your primary residence and you must complete and sign a homestead application.

Can a relative of the owner qualify for the residential homestead classification?
Certain relatives can qualify for residential relative homestead.

To qualify for the residential relative homestead classification, the relative must: (All three must apply)
1. Be a qualifying relative to one of the owners of the property. Qualifying relatives include:
Parents, grandparents, siblings, children, grandchildren, aunts, uncles, nieces, and nephews of
the owner or of the spouse of the owner.
2. Occupy the property as your primary residence.
3. Be a Minnesota resident.

To apply for the residential relative homestead classification, the relative must complete and sign the Homestead Application .

Relative homesteads do not qualify for a property tax refund.

Can property held under a trust qualify for homestead?
Property held under a trust may qualify for homestead.

To apply for the trust homestead classification, complete and sign the Homestead Application and attach the documents requested.

Who do I contact if I have more questions about the homestead classification?
If you have any questions please contact the Steele County Assessor's Office at (507) 444-7435.