Why do I have to apply for exemption?
Two reasons: 1) Because Minnesota state law (Statute 272.025, subd. 1) mandates that you apply, and 2) so that the county assessor may keep up-to-date records of exempt property in Ramsey County.
When should I apply?
First-time applications should be filed as soon as possible after a property is acquired by a potential exempt organization. Qualified exempt organizations will need to acquire a property and use it for exempt purposes prior to July 1 of the current year in order for the property to be exempt from next year's payable taxes.
Do I have to re-submit my exemption filings every year?
No, you do not have to re-submit each year. However, you do have to re-submit every three years, since exempt properties in Ramsey County are subject to review every three years. Since the last review year was 2010, the next review year will be 2013. Every exempt property owner will have to re-file for exemption in 2013, no matter when they made their initial exemption filing.
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When will my exemption become effective?
A property tax exemption does not become effective until the year following the year in which you apply for and are granted the exemption. For example, if you have acquired the property and established its exempt use prior to July 1 of the year you submit an application for exemption, then your property will become exempt for taxes payable the following year.
You must do the following things by the corresponding dates in order for your property to be exempt from taxes payable in 2013:
- Acquire your property on or before July 1, 2012
- Establish the exempt use of your property on or before July 1, 2012
- Apply for and get your exemption approved by the county assessor on or before December 31, 2012
Please remember that there is no prorated exemption of yearly taxes. This means that if you do not fulfill all the exemption requirements by December 31, 2012, then you will still have to pay your taxes in full for the calendar year 2013, and your exemption from payment will not take effect until 2014.
What if I don't make one of the exemption deadlines?
If you don't acquire the property and establish its exempt use by July 1, and apply for and get your exemption approved before December 31, then the property won't officially be tax-exempt until the year after next.
- For example, if all the necessary exemption steps have not been completed before December 31, 2012, then your property cannot become exempt until the January 2, 2013 assessment for taxes payable in 2014, and you will still have to pay taxes payable in 2012 and 2013.
How much does Ramsey County charge to file an application?
Ramsey County does not charge you anything to file an exemption application.
Can I appeal a denied exemption request?
Yes. You may submit an appeal of your denied exemption request to the Ramsey County Assessor's Office. If that appeal is denied, you may submit an appeal to the Minnesota Tax Court.
Can my property lose its exempt status?
Yes. There are four primary ways that your property can lose its exempt status:
- If the property is sold to an owner who does not qualify for exemption and/or is not planning to use the property for exempt purposes
- If the owner of the property loses their status as a "qualifying exempt owner"
- If the property ceases to be used exclusively for exempt purposes
- If the property is leased to a non-qualifying occupant
If your property loses its exempt status prior to July 1 of a given year, it will be assessed as taxable for property taxes payable the following year.
If your property loses its exempt status after July 1 of a given year, it will be assessed as taxable for property taxes payable two years later.