MEMO. Date: October 13, All Assessors. Information and Education Section Property Tax Division

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Justin Tyler
8 years ago
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1 MEMO Date: October 13, 2014 To: From: Subject: All Assessors Information and Education Section Property Tax Division Updated Homestead Application The Property Tax Division of the Department of Revenue is pleased to provide you with a new and improved homestead application. Similar to the most recent homestead application released by the Minnesota Department of Revenue, this application may be used for: owner-occupied residential homesteads, owner-occupied agricultural homesteads, relative residential homesteads, and relative agricultural homesteads. We have made changes based on feedback provided by a number of counties, as well as feedback from nonproperty tax experts to ensure the form would be understandable and usable by both county offices and the taxpayers completing it. We appreciate everyone who gave input as part of this collaborative effort. Some of the new improvements include clearer instruction for each section, more distinction of what type of homestead the application is for, and additional signature blocks for applicants and owners. Please remember, according to Minnesota Statutes, section counties MUST use the application form for homestead benefits that is prescribed by the Commissioner of Revenue. The form provides the layout to capture necessary data for the assessor to determine the type and percentage of homestead to grant. You may begin using this homestead application immediately. The following pages provide a breakdown of the new form and each section details how to assist taxpayers on completing the appropriate sections correctly.

Similar to the most recent homestead application released by the Minnesota Department of Revenue, this application may be used for: owner-occupied residential homesteads, owner-occupied agricultural

2 Section 1: Property Information Information pertaining to the property the applicant(s) are applying for homestead on should be entered in this section. This section is mostly unchanged from previous years. Section 2: Occupant Information As stated on the form, this section must be completed by EACH individual or married couple applying for homestead. If two individuals who are not married are claiming homestead, two separate applications must be completed and submitted.

Section 2: Occupant Information As stated on the form, this section must be completed by EACH individual or married

3 Section 3: Homestead Application [Residential OR Agricultural] The occupant applying for homestead will either fill out one of the two sections here depending on what type of homestead they are applying for: Section 3A: Residential Homestead Application OR Section 3B: Agricultural Homestead Application The applicant should NOT fill out both sections, as only one will apply. A detailed list of who is considered a qualifying relative for residential and agricultural homestead are listed at the bottom of the form. The list will help taxpayers determine if they are qualifying relatives. Section 4: Relative Homestead Application [Relative Homesteads Only] If the applicant determines they are a qualifying relative of the homeowner in Section 3, this section must be completed providing the property owner s information. If the occupant is the homeowner, this section can be skipped, so this section may not always be completed when you receive applications in your office.

A detailed list of who is considered a qualifying relative for residential and agricultural homestead are listed at the bottom of the form.

4 Section 5: Signature This section must include signatures of all owners or qualifying relatives who occupy the property. Note: The homestead application can also be used for trust-owned properties. If the property is owned by a trust, the grantor, grantor's surviving spouse, grantor's relative, or grantor's surviving relative must sign the application (depending on who is seeking homestead). Instructions There are instructions on the back of the form to assist taxpayers with filling out the document, and hopefully answers potential questions related to the application process. Because the instructions are on page 3, please note that taxpayers need only supply the signed application and not instructions in order to receive homestead. Instructions also include helpful information for trust-owned properties and who should fill out and sign the application.

Instructions There are instructions on the back of the form to assist taxpayers with filling out the document, and hopefully answers potential questions related to the application process.

5 Retention of Homestead Applications: Many counties have adopted the General Retention schedule for use of their own retention policies. However, in order to comply with current law, the Department of Revenue recommends further retention guidelines of homestead applications: Any time a property is granted homestead, the most current homestead application for that owner is retained as long as homestead is in place. For example, if a property was purchased and homesteaded in 2002 and is still under same ownership and still homesteaded, the initial application should still be kept on file in the assessor s office. This way, so long as the owners are claiming this property as their primary residence, you will have appropriate paper or electronic documentation attesting to this fact. If - at any time - ownership transfers (via sale or other means) so that the original homestead owner no longer homesteads the property, the previous owner s application should be held to the ten-year general records retention schedule (or the county s own schedule). If there is a change in marital status or the county assessor requests a new homestead application from a taxpayer, the most current application should be kept on file and the prior applications held to the tenyear general records retention schedule (or the county s own schedule). As most property owners are not required to re-apply for homestead each year, it is assumed that documentation will remain on file so long as homestead is given to a property. You may start using this application in your offices immediately. If you have any questions, please contact the Information and Education Section via at proptax.questions@state.mn.us. Thank you.

homestead application for that owner is retained as long as homestead is in place.

2012 CHANGES AFFECTING LEGAL RESIDENCE QUALIFICATION

2012 CHANGES AFFECTING LEGAL RESIDENCE QUALIFICATION TWO MAJOR CHANGES 1. Restricts the number of legal residences for a married couple (and other household members) to one, regardless of the state (ie: