FAQs - Homestead

A homestead credit is a statutory reduction to the general property tax for certain property that is occupied as a person’s primary place of residence.

Property taxes are lower on owner-occupied property than they are on other residences, commercial property or apartments.

To qualify for a homestead credit, you must meet all of the following requirements:

• You must be one of the owners of the property, or be a qualifying relative of at least one of the owners. To be a qualifying relative of the owner, you must be the owner’s son, daughter, parent, grandchild, grandparent, brother, sister, aunt, uncle, niece, or nephew. This relationship may exist through marriage.

• You must occupy the property as your primary place of residence.

• You must be a Minnesota resident. (If a residential class property is the primary residence of a qualifying relative of an owner, it is not necessary for the owner to be a Minnesota resident.)

• You must qualify for homestead as outlined above. You will be required to show proof of ownership and proof of occupancy.

• You can file an initial homestead application at the Anoka County Property Records and Taxation office, 2100 3rd Ave. Anoka MN. You can also file by mail. To order forms please call 763-323-5400 or download the form in Adobe Acrobat format.

• You must provide the names and Social Security numbers of all of the owners of the property, and if the property is not owner occupied, the names and Social Security numbers of the owner’s relatives who occupy the property as their primary place of residence.

• All of the owners and, if the property is not owner occupied, all of the owners’ relatives occupying the property must sign an initial homestead application.

• Certificate of Real Estate (CRV) Value must be filed. Whenever real estate is sold for a consideration in excess of $1,000, the grantor, grantee, or legal agent of either shall file a Certificate of Value with the county auditor when the deed or other document is presented for recording. Filing a CRV is required pursuant to Minnesota Statute 272.115 and if not filed, the homestead can not be granted (view the statute on the State of Minnesota Web site).

Even though Social Security numbers are private information, under Minnesota State law, they must be provided before a homestead credit will be granted. Social Security numbers will be used to determine if owners or relatives of owners have applied for more than one homestead in the state.

According to Minnesota State Statute 273.124, Subd. 13, the homestead application must be signed by each owner who occupies the property and by each owner's spouse who occupies the property. The spouse must sign even if they are not listed on the deed of record (view the statute on the State of Minnesota Web site).

As soon as possible after you purchase and move into your home. If you purchase and occupy by December 1st of any year, and make application by December 15th, the following year’s property tax will reflect the homestead rates.

To be eligible for full homestead benefits, you must meet all of the qualifications for homestead on or before January 2 in the year for which you are applying.

You may also be eligible for full homestead benefits if you meet all of the qualifications for homestead on or before December 1 in the year for which you are applying. This is often called a "midyear" homestead.

In addition to your own homestead, you may be able to obtain a homestead for any property you own in which a qualifying relative lives as his or her primary place of residence.

No. The homestead credit is based on a number of factors.

• First, the homestead credit decreases as the property’s market value increases.

• Second, not all properties are eligible for a full (100%) homestead credit.

• Third, there are other credits attached to homesteaded property, such as credits for the blind, disabled, or paraplegic that may also affect the amount of the homestead credit received.

After the initial approval, the homestead classification will remain until the property is sold or the owner or the qualifying relative no longer uses it as a primary place of residence. The owner must notify the assessor within 30 days of any change in homestead status, i.e. the home sells, renters move in, relatives move out, etc. Upon the sale of the property, a Certificate of Real Estate Value must be filed with the county auditor as required under Minnesota Statute 272.115 (view the statute on the State of Minnesota Web site).

If the assessor is not notified within 30 days that the property has been sold or is no longer being used as a primary place of residence, the homestead will be removed and penalties will be imposed.

Falsifying a homestead is punishable by imprisonment for not more than one year or payment of a fine of not more than $3,000, or both.

Certain trusts can qualify for homestead. A Certificate of Trust must be completed and approved by the County Assessor, or the Trust must be provided for the Assessor ‘s review. Call Anoka County Assessment Services for further information at 763-323-5475.

Yes, as long as the life estate interest is shown on the deed, and the holder of the life estate meets all the homestead requirements.

Yes, the owner/occupant must also apply and meet the requirements.

Every homestead is unique. Some homesteads involve property held under a trust agreement. Other property is purchased with lender requirements that may affect the homestead classification. You are encouraged to contact Anoka County Property Records and Taxation with any questions you may have.

Additional printed information about homesteads is available by referring to Minnesota Statutes Chapter 273 (view the statute on the State of Minnesota Web site).

Minnesota Statute 273.13 subdivision 22 Class 1b (view the statute on the State of Minnesota Web site) provides a reduced class rate for homestead property in certain cases.

The 2004 application forms for the Special Homestead Classification for the Disabled (totally and permanently) and the Property Tax Program for homeowners who are blind (certified legally) are now available from the State of Minnesota. These forms are available (in Adobe Acrobat format) at:

• www.taxes.state.mn.us/forms/pe12_04.pdf (disabled)

• www.taxes.state.mn.us/forms/pe13_04.pdf (blind)

The income requirements for the disabled homestead qualification have been removed from the 2004 form. The applicant must have disability income, but they may now have any amount of other income. Annual application for either program will no longer be necessary once the 2004 form is filed by the homeowner and approved by the State of Minnesota. If you move, you must complete a new application.