What documentation is needed with the application?
Letters were sent out in early May by the Veterans Administration that certified both disability status and honorable discharge. You must submit your application with this letter to your county assessor’s office. Do not submit outdated information, or information which predates the law. Assessors have been instructed to only accept copies of the recent letter prescribed by the V.A. to determine whether or not eligibility requirements have been met.
The burden is on the taxpayer to provide additional information if it is requested by the assessor to verify the information required for the market value exclusion. Any information pertaining to disability status must come from the Veteran’s Administration and not elsewhere. It is not up to county assessors, the Department of Revenue, or county veterans service officers to determine a veteran’s service-connected disability.
Will a qualifying veteran be responsible to pay special assessments?
Yes. This value exclusion reduces or eliminates all or a portion of the value on a veteran’s homestead property. The exclusion has no effect on special assessments. Special assessments have no relationship to value, they are a lien against property imposed by a public authority to pay costs of public improvements such as sidewalks, streets, sewers, etc.
What if a veteran has transferred ownership of his/her property to a son or daughter but retained a life estate?
If a qualifying veteran retains life estate interest in the property and continues to occupy the property as his/ her homestead and primary place of residence, that veteran would be eligible for this exclusion.
Will I qualify for the market value exclusion if my property is in a trust?
It depends on how the trust was written up; therefore it will need to be reviewed by the Assessor’s office. When applying, submit a certificate of trust or a copy of your trust with the rest of your documentation.
Does the market value exclusion apply to manufactured homes?
Yes. The law is effective for assessment year 2008. Since manufactured homes assessed as personal property are assessed the same year in which taxes are due, the exclusion would apply to the 2008 taxes payable year.
If a property is owned by the spouse of a qualifying disabled veteran, but does not list that veteran as an owner on the deed, does the property qualify?
In order for a property to qualify for market value exclusion, it must be owned and occupied by a qualifying disabled veteran. That said, the veteran’s name must be listed as an owner on the deed of the property before the property is eligible for market value exclusion.
Does a surviving spouse of a disabled veteran, that passed away before enrolling his/her property, qualify for the market value exclusion?
No. Surviving spouses are not eligible to apply for market value exclusion on their own. Only veterans with total (100 percent) and permanent service-connected disability can apply and qualify on his/her own before a surviving spouse is eligible to continue that benefit. In other words, a spouse cannot apply; only a qualifying veteran can. There is no retroactive application of this benefit to households where the qualifying disabled veteran has already passed away.
How long will the benefit continue into the future for a surviving spouse of a qualified disabled veteran?
Until recently, the surviving spouse of a disabled veteran who qualified for the market value exclusion only received the exclusion for two (2) taxes payable years after the veteran passed away. But now, due to a 2011 change in Minnesota law, surviving spouses will receive the benefit of the value exclusion for five (5) additional years after the disabled veteran has passed away or until the spouse sells, transfers, or otherwise disposes of the property, whichever comes first. The five-year duration begins during the taxes payable year in which the veteran passes away.
Do relative homesteads qualify?
No. Relative homesteads do not qualify for this program. A property must be both owned and occupied by a qualifying disabled veteran before being eligible for the market value exclusion.
Does the new disabled veterans’ exclusion apply to linked parcels on a residential homestead?
The law does not limit the exclusion to the base parcel only, therefore, linked residential parcels that are part of the homestead may receive the market value exclusion. The law does limit the benefit on agricultural homesteads to the house, garage and the one acre of land immediately surrounding them.
Would the exclusion apply to multiple qualifying veterans who own the same property, assuming they are not married?
In a scenario where more than one qualifying disabled veteran owns and occupies a property as a homestead, ownership of the home would be divided among all owner-occupants. For each qualifying disabled veteran, the exclusion amount would also reflect the percentage in ownership.
If two qualifying spouses own and occupy a home, how is the exclusion applied?
Spouses are treated as one entity for property tax purposes. If two 70 percent disabled qualifying spouses owned and occupied a property as homestead, the benefit would be $150,000. If two 100 percent permanently disabled qualifying spouses owned the property, the exclusion would be $300,000. If one spouse is 100 percent permanently disabled, and the other 70 percent disabled, the exclusion amount would be $300,000 (which is the same as if the permanently and totally disabled veteran were married to someone with no qualifying disability).
Do properties qualifying for the market value exclusion also qualify for a blind/disabled homestead?
No. Properties that qualify for the market value exclusion for homesteads of disabled veterans do not additionally qualify for a blind/disabled homestead.
Commonly Misused Terms
Class: This is not a new property tax classification. It applies to residential and agricultural homestead classes. For agricultural homesteads, the value exclusion applies to the house, garage, and first acre of the property.
Credit: This program is not a credit or refund. It is a market value exclusion in relation to taxable market value of a homestead property.
Exemption: This is not a property tax exemption. Again, it is an exclusion of market value (up to a certain amount) from property taxes. It is very possible for a qualifying disabled veteran to continue to pay some property taxes. Properties valued at amounts higher than the available exclusion amount may still be subject to taxes on the remaining market value.
Assessment year vs. taxes payable year: The first assessment year in which this benefit applies is assessment year 2008, which will be reflected in taxes payable in 2009 (with the exception of manufactured homes assessed as personal property). Although the law was enacted in 2008 and applications are first available in 2008, the exclusion does not apply to real estate taxes payable in 2008.
Minnesota Department of Revenue Fact Sheet
Ramsey County Assessor's Office
Your county’s Veterans Service Office should be able to assist you with properly filling out this form.
For a summary of program qualifications, please reference the Market Value Exclusion on Homestead Property of Disabled Veterans fact sheet.