Minnesota has a property tax program that many eligible veterans never use. It is called the Market Value Exclusion for Veterans with a Disability, and it can lower the taxable value of a veteran's home, and with it the property tax bill.
What the program does
This is not a tax exemption, credit, or refund. It subtracts a set amount from the assessor's estimated market value of your home, which means you are taxed on a lower value.
• Up to $150,000 excluded for veterans with a service-connected disability rating of 70 percent or more.
• Up to $300,000 excluded for veterans with a total (100 percent) and permanent service-connected disability.
Who qualifies
• The veteran was honorably discharged from the U.S. armed forces.
• The U.S. Department of Veterans Affairs certifies a service-connected disability at the required level.
• The home is the veteran's homestead, and the veteran both owns and lives in it. Homesteads occupied by relatives do not qualify.
The program also covers certain surviving spouses and family caregivers. The rules for them are specific, so check with your county assessor about your situation.
How to apply
1. Make sure your property already has Minnesota homestead status. The exclusion application does not replace a homestead application.
2. Get the application from your county assessor's office, or from your county Veterans Service Officer.
3. Include the VA documentation your county requires.
4. Submit it to the county assessor.
Deadlines and renewals
The Minnesota Department of Revenue says to apply by July 1 for the exclusion to apply to taxes payable the following year. At least one county's website lists a later date, so confirm the date with your county assessor. Veterans rated 70 percent or higher generally have to reapply each year, while veterans with a total and permanent disability generally do not need to reapply once approved. Your county can tell you how it handles renewals.
What buyers and sellers should know
The exclusion ends when the property is sold or transferred. If a seller is a veteran receiving the exclusion, the home's current tax bill may be lower than what the next owner will pay. Buyers, ask about it when you review a home's property taxes. A veteran who buys a new home needs to apply for homestead on the new property and apply for the exclusion there.
If you are a veteran thinking of buying or selling, I'm glad to help you plan around it. Call me at 651-248-4855 or email shannon@freshstartrealtymn.com. To start the application, contact your county assessor or your county Veterans Service Officer.
This post is general information, not tax or legal advice. Amounts, deadlines and eligibility rules are set by law and can change, so confirm current details with your county assessor, tax advisor or the Minnesota Department of Revenue.