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2007 Minnesota Statutes

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273.124 HOMESTEAD DETERMINATION; SPECIAL RULES.
    Subdivision 1. General rule. (a) Residential real estate that is occupied and used for the
purposes of a homestead by its owner, who must be a Minnesota resident, is a residential
homestead.
Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used as a
homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.
Dates for establishment of a homestead and homestead treatment provided to particular
types of property are as provided in this section.
Property held by a trustee under a trust is eligible for homestead classification if the
requirements under this chapter are satisfied.
The assessor shall require proof, as provided in subdivision 13, of the facts upon which
classification as a homestead may be determined. Notwithstanding any other law, the assessor may
at any time require a homestead application to be filed in order to verify that any property classified
as a homestead continues to be eligible for homestead status. Notwithstanding any other law to
the contrary, the Department of Revenue may, upon request from an assessor, verify whether an
individual who is requesting or receiving homestead classification has filed a Minnesota income
tax return as a resident for the most recent taxable year for which the information is available.
When there is a name change or a transfer of homestead property, the assessor may reclassify
the property in the next assessment unless a homestead application is filed to verify that the
property continues to qualify for homestead classification.
(b) For purposes of this section, homestead property shall include property which is used for
purposes of the homestead but is separated from the homestead by a road, street, lot, waterway, or
other similar intervening property. The term "used for purposes of the homestead" shall include
but not be limited to uses for gardens, garages, or other outbuildings commonly associated with a
homestead, but shall not include vacant land held primarily for future development. In order to
receive homestead treatment for the noncontiguous property, the owner must use the property for
the purposes of the homestead, and must apply to the assessor, both by the deadlines given in
subdivision 9. After initial qualification for the homestead treatment, additional applications for
subsequent years are not required.
(c) Residential real estate that is occupied and used for purposes of a homestead by a relative
of the owner is a homestead but only to the extent of the homestead treatment that would be
provided if the related owner occupied the property. For purposes of this paragraph and paragraph
(g), "relative" means a parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister,
uncle, aunt, nephew, or niece. This relationship may be by blood or marriage. Property that has
been classified as seasonal residential recreational property at any time during which it has been
owned by the current owner or spouse of the current owner will not be reclassified as a homestead
unless it is occupied as a homestead by the owner; this prohibition also applies to property that,
in the absence of this paragraph, would have been classified as seasonal residential recreational
property at the time when the residence was constructed. Neither the related occupant nor the
owner of the property may claim a property tax refund under chapter 290A for a homestead
occupied by a relative. In the case of a residence located on agricultural land, only the house,
garage, and immediately surrounding one acre of land shall be classified as a homestead under
this paragraph, except as provided in paragraph (d).
(d) Agricultural property that is occupied and used for purposes of a homestead by a relative
of the owner, is a homestead, only to the extent of the homestead treatment that would be provided
if the related owner occupied the property, and only if all of the following criteria are met:
(1) the relative who is occupying the agricultural property is a son, daughter, grandson,
granddaughter, father, or mother of the owner of the agricultural property or a son, daughter,
grandson, or granddaughter of the spouse of the owner of the agricultural property;
(2) the owner of the agricultural property must be a Minnesota resident;
(3) the owner of the agricultural property must not receive homestead treatment on any
other agricultural property in Minnesota; and
(4) the owner of the agricultural property is limited to only one agricultural homestead per
family under this paragraph.
Neither the related occupant nor the owner of the property may claim a property tax refund
under chapter 290A for a homestead occupied by a relative qualifying under this paragraph. For
purposes of this paragraph, "agricultural property" means the house, garage, other farm buildings
and structures, and agricultural land.
Application must be made to the assessor by the owner of the agricultural property to receive
homestead benefits under this paragraph. The assessor may require the necessary proof that the
requirements under this paragraph have been met.
(e) In the case of property owned by a property owner who is married, the assessor must not
deny homestead treatment in whole or in part if only one of the spouses occupies the property and
the other spouse is absent due to: (1) marriage dissolution proceedings, (2) legal separation, (3)
employment or self-employment in another location, or (4) other personal circumstances causing
the spouses to live separately, not including an intent to obtain two homestead classifications
for property tax purposes. To qualify under clause (3), the spouse's place of employment or
self-employment must be at least 50 miles distant from the other spouse's place of employment,
and the homesteads must be at least 50 miles distant from each other. Homestead treatment,
in whole or in part, shall not be denied to the owner's spouse who previously occupied the
residence with the owner if the absence of the owner is due to one of the exceptions provided in
this paragraph.
(f) The assessor must not deny homestead treatment in whole or in part if:
(1) in the case of a property owner who is not married, the owner is absent due to residence
in a nursing home, boarding care facility, or an elderly assisted living facility property as defined
in section 273.13, subdivision 25a, and the property is not otherwise occupied; or
(2) in the case of a property owner who is married, the owner or the owner's spouse or both
are absent due to residence in a nursing home, boarding care facility, or an elderly assisted living
facility property as defined in section 273.13, subdivision 25a, and the property is not occupied or
is occupied only by the owner's spouse.
(g) If an individual is purchasing property with the intent of claiming it as a homestead and
is required by the terms of the financing agreement to have a relative shown on the deed as a
co-owner, the assessor shall allow a full homestead classification. This provision only applies to
first-time purchasers, whether married or single, or to a person who had previously been married
and is purchasing as a single individual for the first time. The application for homestead benefits
must be on a form prescribed by the commissioner and must contain the data necessary for the
assessor to determine if full homestead benefits are warranted.
(h) If residential or agricultural real estate is occupied and used for purposes of a homestead
by a child of a deceased owner and the property is subject to jurisdiction of probate court, the
child shall receive relative homestead classification under paragraph (c) or (d) to the same extent
they would be entitled to it if the owner was still living, until the probate is completed. For
purposes of this paragraph, "child" includes a relationship by blood or by marriage.
(i) If a single-family home, duplex, or triplex classified as either residential homestead or
agricultural homestead is also used to provide licensed child care, the portion of the property used
for licensed child care must be classified as a part of the homestead property.
    Subd. 2. Planned communities; common elements; condominiums; cooperatives. (a)
The total value of planned community common elements, as defined in chapter 515B, including
the value added as provided in this paragraph, must have the benefit of homestead treatment or
other special classification if the unit in the planned community otherwise qualifies. The value of
a planned community unit, as defined in chapter 515B, must be increased by the value added by
the right to use any common elements in connection with the planned community. The common
elements of the development must not be separately taxed.
(b) Condominium property qualifying as a homestead under section 515A.1-105 and
property owned by a cooperative association that qualifies as a homestead must have the benefit of
homestead treatment or other special classification if the condominium or cooperative association
property otherwise qualifies.
(c) If a unit in a common interest community is owned by the occupant and used for the
purposes of a homestead but is located upon land which is leased, that leased land must be valued
and assessed as if it were homestead property within class 1 if all of the following criteria are met:
(1) the occupant is using the unit as a permanent residence;
(2) the occupant or the cooperative association is paying the ad valorem property taxes and
any special assessments levied against the land and structure;
(3) the occupant or the cooperative association has signed a land lease; and
(4) the term of the land lease is at least 50 years, notwithstanding the fact that the amount
of the rental payment may be renegotiated at shorter intervals.
    Subd. 3. Cooperatives and charitable corporations; homestead and other property.
(a) When property is owned by a corporation or association organized under chapter 308A or
308B, and each person who owns a share or shares in the corporation or association is entitled to
occupy a building on the property, or a unit within a building on the property, the corporation or
association may claim homestead treatment for each dwelling, or for each unit in the case of a
building containing several dwelling units, or for the part of the value of the building occupied
by a shareholder. Each building or unit must be designated by legal description or number. The
net tax capacity of each building or unit that qualifies for assessment as a homestead under this
subdivision must include not more than one-half acre of land, if platted, nor more than 80 acres
if unplatted. The net tax capacity of the property is the sum of the net tax capacities of each of
the respective buildings or units comprising the property, including the net tax capacity of each
unit's or building's proportionate share of the land and any common buildings. To qualify for the
treatment provided by this subdivision, the corporation or association must be wholly owned by
persons having a right to occupy a building or unit owned by the corporation or association.
A charitable corporation organized under the laws of Minnesota and not otherwise exempt
thereunder with no outstanding stock qualifies for homestead treatment with respect to member
residents of the dwelling units who have purchased and hold residential participation warrants
entitling them to occupy the units.
(b) To the extent provided in paragraph (a), a cooperative or corporation organized under
chapter 308A may obtain separate assessment and valuation, and separate property tax statements
for each residential homestead, residential nonhomestead, or for each seasonal residential
recreational building or unit not used for commercial purposes. The appropriate class rates under
section 273.13 shall be applicable as if each building or unit were a separate tax parcel; provided,
however, that the tax parcel which exists at the time the cooperative or corporation makes
application under this subdivision shall be a single parcel for purposes of property taxes or the
enforcement and collection thereof, other than as provided in paragraph (a) or this paragraph.
(c) A member of a corporation or association may initially obtain the separate assessment
and valuation and separate property tax statements, as provided in paragraph (b), by applying to
the assessor by June 30 of the assessment year.
(d) When a building, or dwelling units within a building, no longer qualify under paragraph
(a) or (b), the current owner must notify the assessor within 30 days. Failure to notify the assessor
within 30 days shall result in the loss of benefits under paragraph (a) or (b) for taxes payable in
the year that the failure is discovered. For these purposes, "benefits under paragraph (a) or (b)"
means the difference in the net tax capacity of the building or units which no longer qualify as
computed under paragraph (a) or (b) and as computed under the otherwise applicable law, times
the local tax rate applicable to the building for that taxes payable year. Upon discovery of a failure
to notify, the assessor shall inform the auditor of the difference in net tax capacity for the building
or buildings in which units no longer qualify, and the auditor shall calculate the benefits under
paragraph (a) or (b). Such amount, plus a penalty equal to 100 percent of that amount, shall then
be demanded of the building's owner. The property owner may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section 278.01 and
filing a proof of service as provided in section 278.01 with the Minnesota Tax Court within 60
days of the date of the notice from the county. The appeal shall be governed by the Tax Court
procedures provided in chapter 271, for cases relating to the tax laws as defined in section 271.01,
subdivision 5
; disregarding sections 273.125, subdivision 5, and 278.03, but including section
278.05, subdivision 2. If the amount of the benefits under paragraph (a) or (b) and penalty are
not paid within 60 days, and if no appeal has been filed, the county auditor shall certify the
amount of the benefit and penalty to the succeeding year's tax list to be collected as part of the
property taxes on the affected property.
    Subd. 3a. Manufactured home park cooperative. When a manufactured home park is
owned by a corporation or association organized under chapter 308A, and each person who owns
a share or shares in the corporation or association is entitled to occupy a lot within the park, the
corporation or association may claim homestead treatment for each lot occupied by a shareholder.
Each lot must be designated by legal description or number, and each lot is limited to not more
than one-half acre of land for each homestead. The manufactured home park shall be valued and
assessed as if it were homestead property within class 1 if all of the following criteria are met:
(1) the occupant is using the property as a permanent residence;
(2) the occupant or the cooperative association is paying the ad valorem property taxes and
any special assessments levied against the land and structure either directly, or indirectly through
dues to the corporation; and
(3) the corporation or association organized under chapter 308A is wholly owned by persons
having a right to occupy a lot owned by the corporation or association.
A charitable corporation, organized under the laws of Minnesota with no outstanding stock,
and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, qualifies for
homestead treatment with respect to member residents of the manufactured home park who hold
residential participation warrants entitling them to occupy a lot in the manufactured home park.
    Subd. 4. Nonprofit corporations. When a building containing several dwelling units is
owned by an entity organized under chapter 317A and operating as a nonprofit corporation which
enters into membership agreements with persons under which they are entitled to life occupancy
in a unit in the building, homestead classification must be given to each unit so occupied and
the entire building must be assessed in the manner provided in subdivision 3 for cooperatives
and charitable corporations.
    Subd. 5. Continuing care facilities. When a building containing several dwelling units is
owned by an entity which is regulated under the provisions of chapter 80D and operating as a
continuing care facility enters into residency agreements with persons who occupy a unit in the
building and the residency agreement entitles the resident to occupancy in the building after
personal assets are exhausted and regardless of ability to pay the monthly maintenance fee,
homestead classification shall be given to each unit so occupied and the entire building shall be
assessed in the manner provided in subdivision 3 for cooperatives and charitable corporations.
    Subd. 6. Leasehold cooperatives. When one or more dwellings or one or more buildings
which each contain several dwelling units is owned by a nonprofit corporation subject to the
provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the Internal
Revenue Code of 1986, as amended through December 31, 1990, or a limited partnership which
corporation or partnership operates the property in conjunction with a cooperative association,
and has received public financing, homestead treatment may be claimed by the cooperative
association on behalf of the members of the cooperative for each dwelling unit occupied by a
member of the cooperative. The cooperative association must provide the assessor with the Social
Security numbers of those members. To qualify for the treatment provided by this subdivision, the
following conditions must be met:
(a) the cooperative association must be organized under chapter 308A or 308B and all
voting members of the board of directors must be resident tenants of the cooperative and must be
elected by the resident tenants of the cooperative;
(b) the cooperative association must have a lease for occupancy of the property for a term of
at least 20 years, which permits the cooperative association, while not in default on the lease,
to participate materially in the management of the property, including material participation in
establishing budgets, setting rent levels, and hiring and supervising a management agent;
(c) to the extent permitted under state or federal law, the cooperative association must have a
right under a written agreement with the owner to purchase the property if the owner proposes
to sell it; if the cooperative association does not purchase the property it is offered for sale,
the owner may not subsequently sell the property to another purchaser at a price lower than
the price at which it was offered for sale to the cooperative association unless the cooperative
association approves the sale;
(d) a minimum of 40 percent of the cooperative association's members must have incomes at
or less than 60 percent of area median gross income as determined by the United States Secretary
of Housing and Urban Development under section 142(d)(2)(B) of the Internal Revenue Code of
1986, as amended through December 31, 1991. For purposes of this clause, "member income"
means the income of a member existing at the time the member acquires cooperative membership;
(e) if a limited partnership owns the property, it must include as the managing general
partner a nonprofit organization operating under the provisions of chapter 317A and qualifying
under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended through
December 31, 1990, and the limited partnership agreement must provide that the managing
general partner have sufficient powers so that it materially participates in the management and
control of the limited partnership;
(f) prior to becoming a member of a leasehold cooperative described in this subdivision,
a person must have received notice that (1) describes leasehold cooperative property in plain
language, including but not limited to the effects of classification under this subdivision on rents,
property taxes and tax credits or refunds, and operating expenses, and (2) states that copies of the
articles of incorporation and bylaws of the cooperative association, the lease between the owner
and the cooperative association, a sample sublease between the cooperative association and a
tenant, and, if the owner is a partnership, a copy of the limited partnership agreement, can be
obtained upon written request at no charge from the owner, and the owner must send or deliver
the materials within seven days after receiving any request;
(g) if a dwelling unit of a building was occupied on the 60th day prior to the date on which
the unit became leasehold cooperative property described in this subdivision, the notice described
in paragraph (f) must have been sent by first class mail to the occupant of the unit at least 60 days
prior to the date on which the unit became leasehold cooperative property. For purposes of the
notice under this paragraph, the copies of the documents referred to in paragraph (f) may be in
proposed version, provided that any subsequent material alteration of those documents made after
the occupant has requested a copy shall be disclosed to any occupant who has requested a copy of
the document. Copies of the articles of incorporation and certificate of limited partnership shall
be filed with the secretary of state after the expiration of the 60-day period unless the change to
leasehold cooperative status does not proceed;
(h) the county attorney of the county in which the property is located must certify to the
assessor that the property meets the requirements of this subdivision;
(i) the public financing received must be from at least one of the following sources:
(1) tax increment financing proceeds used for the acquisition or rehabilitation of the building
or interest rate write-downs relating to the acquisition of the building;
(2) government issued bonds exempt from taxes under section 103 of the Internal Revenue
Code of 1986, as amended through December 31, 1991, the proceeds of which are used for the
acquisition or rehabilitation of the building;
(3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing Act;
(4) rental housing program funds under Section 8 of the United States Housing Act of 1937 or
the market rate family graduated payment mortgage program funds administered by the Minnesota
Housing Finance Agency that are used for the acquisition or rehabilitation of the building;
(5) low-income housing credit under section 42 of the Internal Revenue Code of 1986, as
amended through December 31, 1991;
(6) public financing provided by a local government used for the acquisition or rehabilitation
of the building, including grants or loans from (i) federal community development block grants;
(ii) HOME block grants; or (iii) residential rental bonds issued under chapter 474A; or
(7) other rental housing program funds provided by the Minnesota Housing Finance Agency
for the acquisition or rehabilitation of the building;
(j) at the time of the initial request for homestead classification or of any transfer of
ownership of the property, the governing body of the municipality in which the property is located
must hold a public hearing and make the following findings:
(1) that the granting of the homestead treatment of the apartment's units will facilitate safe,
clean, affordable housing for the cooperative members that would otherwise not be available
absent the homestead designation;
(2) that the owner has presented information satisfactory to the governing body showing that
the savings garnered from the homestead designation of the units will be used to reduce tenant's
rents or provide a level of furnishing or maintenance not possible absent the designation; and
(3) that the requirements of paragraphs (b), (d), and (i) have been met.
Homestead treatment must be afforded to units occupied by members of the cooperative
association and the units must be assessed as provided in subdivision 3, provided that any unit not
so occupied shall be classified and assessed pursuant to the appropriate class. No more than three
acres of land may, for assessment purposes, be included with each dwelling unit that qualifies for
homestead treatment under this subdivision.
When dwelling units no longer qualify under this subdivision, the current owner must notify
the assessor within 60 days. Failure to notify the assessor within 60 days shall result in the loss of
benefits under this subdivision for taxes payable in the year that the failure is discovered. For
these purposes, "benefits under this subdivision" means the difference in the net tax capacity of
the units which no longer qualify as computed under this subdivision and as computed under the
otherwise applicable law, times the local tax rate applicable to the building for that taxes payable
year. Upon discovery of a failure to notify, the assessor shall inform the auditor of the difference
in net tax capacity for the building or buildings in which units no longer qualify, and the auditor
shall calculate the benefits under this subdivision. Such amount, plus a penalty equal to 100
percent of that amount, shall then be demanded of the building's owner. The property owner may
appeal the county's determination by serving copies of a petition for review with county officials
as provided in section 278.01 and filing a proof of service as provided in section 278.01 with the
Minnesota Tax Court within 60 days of the date of the notice from the county. The appeal shall
be governed by the Tax Court procedures provided in chapter 271, for cases relating to the tax
laws as defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5,
and 278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this
subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount of the benefit and penalty to the succeeding year's tax list to be
collected as part of the property taxes on the affected buildings.
    Subd. 6a. Preliminary approval of leasehold cooperatives. Preliminary approval for
classification as a leasehold cooperative may be granted to property when a developer proposes to
construct one or more residential dwellings or buildings using funds provided by the Minnesota
Housing Finance Agency if all of the following conditions are met:
(a) The developer must present an affidavit to the county attorney and to the governing body
of the municipality that includes a statement of the developer's intention to comply with all
requirements in subdivision 6 and a detailed description of the plan for doing so.
(b) The commissioner of the Minnesota Housing Finance Agency must provide the
county attorney and governing body with a description of the financing and related terms
the commissioner proposes to provide with respect to the project, together with an objective
assessment of the likelihood that the project will comply with the requirements of subdivision 6.
(c) The county attorney must review the materials provided under paragraphs (a) and (b),
and may require the developer or the Minnesota Housing Finance Agency to provide additional
information. If the county attorney determines that it is reasonably likely that the project will meet
the requirements of this subdivision, the county attorney shall provide preliminary approval to
treatment of the property as a leasehold cooperative.
(d) The governing body shall conduct a public hearing as provided in subdivision 6,
paragraph (j), and make its preliminary findings based on the information provided by the
developer and the Minnesota Housing Finance Agency.
Upon completion of the project and creation of the leasehold cooperative, actual compliance
with the requirements of this subdivision must be demonstrated, and certified by the county
attorney. A second hearing by the governing body is not required.
If the county attorney finds that the homestead treatment granted pursuant to a preliminary
approval under this subdivision must be revoked because the completed project failed to meet the
requirements of this subdivision, the benefits of the treatment shall be recaptured. The county
assessor shall determine the amount by which the tax imposed on the property was reduced
because it was treated as a leasehold cooperative. The developer shall be charged an amount equal
to the tax reduction received or, if the county attorney determines that the failure to meet the
requirements was due to the developer's intentional disregard of the requirements, 150 percent of
the tax reduction received. The penalty must be paid to the county treasurer within 90 days after
receipt of a statement from the treasurer. The proceeds of the penalty shall be distributed to the
local taxing jurisdictions in proportion to the amounts of their levies on the property.
    Subd. 7. Leased buildings or land. For purposes of class 1 determinations, homesteads
include:
(a) buildings and appurtenances owned and used by the occupant as a permanent residence
which are located upon land the title to which is vested in a person or entity other than the
occupant;
(b) all buildings and appurtenances located upon land owned by the occupant and used for
the purposes of a homestead together with the land upon which they are located, if all of the
following criteria are met:
(1) the occupant is using the property as a permanent residence;
(2) the occupant is paying the property taxes and any special assessments levied against the
property;
(3) the occupant has signed a lease which has an option to purchase the buildings and
appurtenances;
(4) the term of the lease is at least five years; and
(5) the occupant has made a down payment of at least $5,000 in cash if the property was
purchased by means of a contract for deed or subject to a mortgage;
(c) all buildings and appurtenances and the land upon which they are located that are used
for purposes of a homestead, if all of the following criteria are met:
(1) the land is owned by a utility, which maintains ownership of the land in order to facilitate
compliance with the terms of its hydroelectric project license from the federal Energy Regulatory
Commission;
(2) the land is leased for a term of 20 years or more;
(3) the occupant is using the property as a permanent residence; and
(4) the occupant is paying the property taxes and any special assessments levied against the
property.
Any taxpayer meeting all the requirements of this paragraph must notify the county assessor,
or the assessor who has the powers of the county assessor pursuant to section 273.063, in writing,
as soon as possible after signing the lease agreement and occupying the buildings as a homestead.
    Subd. 8. Homestead owned by or leased to family farm corporation, joint farm venture,
limited liability company, or partnership. (a) Each family farm corporation; each joint family
farm venture; and each limited liability company or partnership which operates a family farm; is
entitled to class 1b under section 273.13, subdivision 22, paragraph (b), or class 2a assessment for
one homestead occupied by a shareholder, member, or partner thereof who is residing on the land,
and actively engaged in farming of the land owned by the family farm corporation, joint family
farm venture, limited liability company, or partnership. Homestead treatment applies even if legal
title to the property is in the name of the family farm corporation, joint family farm venture,
limited liability company, or partnership, and not in the name of the person residing on it.
"Family farm corporation," "family farm," and "partnership operating a family farm"
have the meanings given in section 500.24, except that the number of allowable shareholders,
members, or partners under this subdivision shall not exceed 12. "Limited liability company" has
the meaning contained in sections 322B.03, subdivision 28, and 500.24, subdivision 2, paragraphs
(l) and (m). "Joint family farm venture" means a cooperative agreement among two or more farm
enterprises authorized to operate a family farm under section 500.24.
(b) In addition to property specified in paragraph (a), any other residences owned by family
farm corporations, joint family farm ventures, limited liability companies, or partnerships
described in paragraph (a) which are located on agricultural land and occupied as homesteads
by its shareholders, members, or partners who are actively engaged in farming on behalf of that
corporation, joint farm venture, limited liability company, or partnership must also be assessed as
class 2a property or as class 1b property under section 273.13.
(c) Agricultural property that is owned by a member, partner, or shareholder of a family farm
corporation or joint family farm venture, limited liability company operating a family farm, or
by a partnership operating a family farm and leased to the family farm corporation, limited
liability company, partnership, or joint farm venture, as defined in paragraph (a), is eligible for
classification as class 1b or class 2a under section 273.13, if the owner is actually residing on
the property, and is actually engaged in farming the land on behalf of that corporation, joint
farm venture, limited liability company, or partnership. This paragraph applies without regard
to any legal possession rights of the family farm corporation, joint family farm venture, limited
liability company, or partnership under the lease.
    Subd. 9. Homestead established after assessment date. Any property that was not used
for the purpose of a homestead on the assessment date, but which was used for the purpose of a
homestead on December 1 of a year, constitutes class 1 or class 2a.
Any taxpayer meeting the requirements of this subdivision must notify the county assessor,
or the assessor who has the powers of the county assessor under section 273.063, in writing, by
December 15 of the year of occupancy in order to qualify under this subdivision. The assessor
must not deny full homestead treatment to a property that is partially homesteaded on January 2
but occupied for the purpose of a full homestead on December 1 of a year.
The county assessor and the county auditor may make the necessary changes on their
assessment and tax records to provide for proper homestead classification as provided in this
subdivision.
If homestead classification has not been requested as of December 15, the assessor will
classify the property as nonhomestead for the current assessment year for taxes payable in the
following year, provided that the owner of any property qualifying under this subdivision, which
has not been accorded the benefits of this subdivision, may be entitled to receive homestead
classification by proper application as provided in section 375.192.
The county assessor may publish in a newspaper of general circulation within the county
a notice requesting the public to file an application for homestead as soon as practicable after
acquisition of a homestead, but no later than December 15.
The county assessor shall publish in a newspaper of general circulation within the county no
later than December 1 of each year a notice informing the public of the requirement to file an
application for homestead by December 15.
In the case of manufactured homes assessed as personal property, the homestead must be
established, and a homestead classification requested, by May 29 of the assessment year. The
assessor may include information on these deadlines for manufactured homes assessed as personal
property in the published notice or notices.
    Subd. 10. Real estate purchased for occupancy as a homestead. Real estate purchased for
occupancy as a homestead must be classified as class 1 or class 2a if the purchaser is prevented
from obtaining possession on January 2 next following the purchase by reason of federal or
state rent control laws or regulations.
    Subd. 11. Limitation on homestead treatment. (a) For taxes payable in 2003 through 2005
only, if the assessor has classified a property as both homestead and nonhomestead, the greater of:
(1) the value attributable to the portion of the property used as a homestead; or
(2) the homestead value amount determined under paragraph (b), is entitled to assessment as
a homestead under section 273.13, subdivision 22 or 23.
(b) For taxes payable in 2003 only, the homestead value amount is $60,000. For taxes
payable in 2004 only, the homestead value amount is $45,000. For taxes payable in 2005 only, the
homestead value amount is $30,000.
The homestead value amount must not exceed the property's taxable market value.
(c) If the assessor has classified a property as both homestead and nonhomestead, the
reductions in tax provided under sections 273.135 and 273.1391 apply to the value of both the
homestead and the nonhomestead portions of the property.
    Subd. 12. Homestead of member of United States armed forces; Peace Corps; VISTA.
(a) Real estate actually occupied and used for the purpose of a homestead by a person, or by a
member of that person's immediate family shall be classified as a homestead even though the
person or family is absent if (1) the person or the person's family is absent solely because the
person is on active duty with the armed forces of the United States, or is serving as a volunteer
under the VISTA or Peace Corps program; (2) the owner intends to return as soon as discharged
or relieved from service; and (3) the owner claims it as a homestead. A person who knowingly
makes or submits to an assessor an affidavit or other statement that is false in any material matter
to obtain or aid another in obtaining a benefit under this subdivision is guilty of a felony.
(b) In the case of a person who is absent solely because the person is on active duty with
the United States armed forces, homestead classification must be granted as provided in this
paragraph if the requirements of paragraph (a), clauses (1) to (3), are met, even if the property has
not been occupied as a homestead by the person or a member of the person's family. To qualify for
this classification, the person who acquires the property must notify the assessor of the acquisition
and of the person's absence due to military service. When the person returns from military service
and occupies the property as a homestead, the person shall notify the assessor, who will provide
for abatement of the difference between the nonhomestead and homestead taxes for the current
and two preceding years, not to exceed the time during which the person owned the property.
    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially obtain
homestead classification.
(b) On or before January 2, 1993, each county assessor shall mail a homestead application to
the owner of each parcel of property within the county which was classified as homestead for
the 1992 assessment year. The format and contents of a uniform homestead application shall be
prescribed by the commissioner of revenue. The commissioner shall consult with the chairs of
the house and senate tax committees on the contents of the homestead application form. The
application must clearly inform the taxpayer that this application must be signed by all owners
who occupy the property or by the qualifying relative and returned to the county assessor in
order for the property to continue receiving homestead treatment. The envelope containing the
homestead application shall clearly identify its contents and alert the taxpayer of its necessary
immediate response.
(c) Every property owner applying for homestead classification must furnish to the county
assessor the Social Security number of each occupant who is listed as an owner of the property
on the deed of record, the name and address of each owner who does not occupy the property,
and the name and Social Security number of each owner's spouse who occupies the property.
The application must be signed by each owner who occupies the property and by each owner's
spouse who occupies the property, or, in the case of property that qualifies as a homestead under
subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse file
with the assessor an affidavit or other proof required by the assessor stating that the property
qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social Security
number on the homestead application or provide the affidavits or other proof requested, will
be deemed to have elected to receive only partial homestead treatment of their residence. The
remainder of the residence will be classified as nonhomestead residential. When an owner or
spouse's name and Social Security number appear on homestead applications for two separate
residences and only one application is signed, the owner or spouse will be deemed to have elected
to homestead the residence for which the application was signed.
The Social Security numbers or affidavits or other proofs of the property owners and spouses
are private data on individuals as defined by section 13.02, subdivision 12, but, notwithstanding
that section, the private data may be disclosed to the commissioner of revenue, or, for purposes
of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to
the county treasurer.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for the
property to receive homestead status, a homestead application must be filed with the assessor. The
Social Security number of each relative occupying the property and the Social Security number
of each owner who is related to an occupant of the property shall be required on the homestead
application filed under this subdivision. If a different relative of the owner subsequently occupies
the property, the owner of the property must notify the assessor within 30 days of the change in
occupancy. The Social Security number of a relative occupying the property is private data on
individuals as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner
of revenue.
(e) The homestead application shall also notify the property owners that the application filed
under this section will not be mailed annually and that if the property is granted homestead status
for the 1993 assessment, or any assessment year thereafter, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the owners,
the spouse of the owner, or the relatives no longer use the property as their homestead. Upon the
sale or transfer of the homestead property, a certificate of value must be timely filed with the
county auditor as provided under section 272.115. Failure to notify the assessor within 30 days
that the property has been sold, transferred, or that the owner, the spouse of the owner, or the
relative is no longer occupying the property as a homestead, shall result in the penalty provided
under this subdivision and the property will lose its current homestead status.
(f) If the homestead application is not returned within 30 days, the county will send a second
application to the present owners of record. The notice of proposed property taxes prepared
under section 275.065, subdivision 3, shall reflect the property's classification. Beginning with
assessment year 1993 for all properties, if a homestead application has not been filed with the
county by December 15, the assessor shall classify the property as nonhomestead for the current
assessment year for taxes payable in the following year, provided that the owner may be entitled
to receive the homestead classification by proper application under section 375.192.
(g) At the request of the commissioner, each county must give the commissioner a list
that includes the name and Social Security number of each property owner and the property
owner's spouse occupying the property, or relative of a property owner, applying for homestead
classification under this subdivision. The commissioner shall use the information provided on
the lists as appropriate under the law, including for the detection of improper claims by owners,
or relatives of owners, under chapter 290A.
(h) If the commissioner finds that a property owner may be claiming a fraudulent homestead,
the commissioner shall notify the appropriate counties. Within 90 days of the notification, the
county assessor shall investigate to determine if the homestead classification was properly
claimed. If the property owner does not qualify, the county assessor shall notify the county auditor
who will determine the amount of homestead benefits that had been improperly allowed. For
the purpose of this section, "homestead benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, the taconite homestead credit under section
273.135, the residential homestead and agricultural homestead credits under section 273.1384,
and the supplemental homestead credit under section 273.1391.
The county auditor shall send a notice to the person who owned the affected property at
the time the homestead application related to the improper homestead was filed, demanding
reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead
benefits. The person notified may appeal the county's determination by serving copies of a petition
for review with county officials as provided in section 278.01 and filing proof of service as
provided in section 278.01 with the Minnesota Tax Court within 60 days of the date of the notice
from the county. Procedurally, the appeal is governed by the provisions in chapter 271 which
apply to the appeal of a property tax assessment or levy, but without requiring any prepayment of
the amount in controversy. If the amount of homestead benefits and penalty is not paid within
60 days, and if no appeal has been filed, the county auditor shall certify the amount of taxes and
penalty to the county treasurer. The county treasurer will add interest to the unpaid homestead
benefits and penalty amounts at the rate provided in section 279.03 for real property taxes
becoming delinquent in the calendar year during which the amount remains unpaid. Interest may
be assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the total
amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes otherwise
payable on the property by including the amounts on the property tax statements under section
276.04, subdivision 3. The amounts added under this paragraph to the ad valorem taxes shall
include interest accrued through December 31 of the year preceding the taxes payable year for
which the amounts are first added. These amounts, when added to the property tax statement,
become subject to all the laws for the enforcement of real or personal property taxes for that
year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may collect the
amounts due under the Revenue Recapture Act in chapter 270A, or use any of the powers granted
in sections 277.20 and 277.21 without exclusion, to enforce payment of the homestead benefits,
penalty, interest, and costs, as if those amounts were delinquent tax obligations of the person who
owned the property at the time the application related to the improperly allowed homestead was
filed. The treasurer may relieve a prior owner of personal liability for the homestead benefits,
penalty, interest, and costs, and instead extend those amounts on the tax lists against the property
as provided in this paragraph to the extent that the current owner agrees in writing. On all
demands, billings, property tax statements, and related correspondence, the county must list and
state separately the amounts of homestead benefits, penalty, interest and costs being demanded,
billed or assessed.
(i) Any amount of homestead benefits recovered by the county from the property owner shall
be distributed to the county, city or town, and school district where the property is located in
the same proportion that each taxing district's levy was to the total of the three taxing districts'
levy for the current year. Any amount recovered attributable to taconite homestead credit shall
be transmitted to the St. Louis County auditor to be deposited in the taconite property tax relief
account. Any amount recovered that is attributable to supplemental homestead credit is to be
transmitted to the commissioner of revenue for deposit in the general fund of the state treasury.
The total amount of penalty collected must be deposited in the county general fund.
(j) If a property owner has applied for more than one homestead and the county assessors
cannot determine which property should be classified as homestead, the county assessors will
refer the information to the commissioner. The commissioner shall make the determination and
notify the counties within 60 days.
(k) In addition to lists of homestead properties, the commissioner may ask the counties
to furnish lists of all properties and the record owners. The Social Security numbers and
federal identification numbers that are maintained by a county or city assessor for property tax
administration purposes, and that may appear on the lists retain their classification as private or
nonpublic data; but may be viewed, accessed, and used by the county auditor or treasurer of the
same county for the limited purpose of assisting the commissioner in the preparation of microdata
samples under section 270C.12.
(l) On or before April 30 each year beginning in 2007, each county must provide the
commissioner with the following data for each parcel of homestead property by electronic means
as defined in section 289A.02, subdivision 8:
(i) the property identification number assigned to the parcel for purposes of taxes payable
in the current year;
(ii) the name and Social Security number of each property owner and property owner's
spouse, as shown on the tax rolls for the current and the prior assessment year;
(iii) the classification of the property under section 273.13 for taxes payable in the current
year and in the prior year;
(iv) an indication of whether the property was classified as a homestead for taxes payable in
the current year or for taxes payable in the prior year because of occupancy by a relative of the
owner or by a spouse of a relative;
(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the current
year and the prior year;
(vi) the market value of improvements to the property first assessed for tax purposes for
taxes payable in the current year;
(vii) the assessor's estimated market value assigned to the property for taxes payable in
the current year and the prior year;
(viii) the taxable market value assigned to the property for taxes payable in the current
year and the prior year;
(ix) whether there are delinquent property taxes owing on the homestead;
(x) the unique taxing district in which the property is located; and
(xi) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate under the
law, including for the detection of improper claims by owners, or relatives of owners, under
chapter 290A.
    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23
, paragraph (a), if:
    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife Service,
or (iii) land administered by the Department of Natural Resources on which in lieu taxes are paid
under sections 477A.11 to 477A.14;
    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 acres;
    (3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and
    (4) the agricultural use value of the noncontiguous land and farm buildings is equal to at
least 50 percent of the market value of the house, garage, and one acre of land.
    Homesteads initially classified as class 2a under the provisions of this paragraph shall remain
classified as class 2a, irrespective of subsequent changes in the use of adjoining properties, as
long as the homestead remains under the same ownership, the owner owns a noncontiguous
parcel of agricultural land that is at least 20 acres, and the agricultural use value qualifies under
clause (4). Homestead classification under this paragraph is limited to property that qualified
under this paragraph for the 1998 assessment.
    (b)(i) Agricultural property consisting of at least 40 acres shall be classified as the owner's
homestead, to the same extent as other agricultural homestead property, if all of the following
criteria are met:
    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's spouse, or the
grandson or granddaughter of the owner or the owner's spouse, is actively farming the agricultural
property, either on the person's own behalf as an individual or on behalf of a partnership operating
a family farm, family farm corporation, joint family farm venture, or limited liability company of
which the person is a partner, shareholder, or member;
    (2) both the owner of the agricultural property and the person who is actively farming the
agricultural property under clause (1), are Minnesota residents;
    (3) neither the owner nor the spouse of the owner claims another agricultural homestead in
Minnesota; and
    (4) neither the owner nor the person actively farming the property lives farther than four
townships or cities, or a combination of four townships or cities, from the agricultural property,
except that if the owner or the owner's spouse is required to live in employer-provided housing,
the owner or owner's spouse, whichever is actively farming the agricultural property, may
live more than four townships or cities, or combination of four townships or cities from the
agricultural property.
    The relationship under this paragraph may be either by blood or marriage.
    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead
classification under this paragraph if the qualifications in clause (i) are met, except that "owner"
means the grantor of the trust.
    (iii) Property containing the residence of an owner who owns qualified property under clause
(i) shall be classified as part of the owner's agricultural homestead, if that property is also used for
noncommercial storage or drying of agricultural crops.
    (c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23
, paragraph (a), only if the homestead is classified as class 2a and the detached land
is located in the same township or city, or not farther than four townships or cities or combination
thereof from the homestead. Any taxpayer of these noncontiguous lands must notify the county
assessor that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is
located in another county, the taxpayer must also notify the assessor of the other county.
    (d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section 273.13,
subdivision 23
, paragraph (a). If agricultural land is classified class 2a, any other dwellings on
the land used for purposes of a homestead by persons holding vested remainder interests who
are actively engaged in farming the property, and up to one acre of the land surrounding each
homestead and reasonably necessary for the use of the dwelling as a home, must also be assessed
class 2a.
    (e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
    (1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;
    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or Wilkin;
    (3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for agricultural
purposes;
    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles of one
of the parcels of agricultural land that is owned by the taxpayer; and
    (5) the owner notifies the county assessor that the relocation was due to the 1997 floods, and
the owner furnishes the assessor any information deemed necessary by the assessor in verifying
the change in dwelling. Further notifications to the assessor are not required if the property
continues to meet all the requirements in this paragraph and any dwellings on the agricultural land
remain uninhabited.
    (f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified agricultural
homesteads for subsequent assessments if:
    (1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;
    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
Nicollet, Nobles, or Rice;
    (3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;
    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of one
of the parcels of agricultural land that is owned by the taxpayer; and
    (5) the owner notifies the county assessor that the relocation was due to a March 29, 1998,
tornado, and the owner furnishes the assessor any information deemed necessary by the assessor
in verifying the change in homestead dwelling. For taxes payable in 1999, the owner must notify
the assessor by December 1, 1998. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
    (g) Agricultural property consisting of at least 40 acres of a family farm corporation, joint
family farm venture, family farm limited liability company, or partnership operating a family
farm as described under subdivision 8 shall be classified homestead, to the same extent as other
agricultural homestead property, if all of the following criteria are met:
    (1) a shareholder, member, or partner of that entity is actively farming the agricultural
property;
    (2) that shareholder, member, or partner who is actively farming the agricultural property is a
Minnesota resident;
    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder, member,
or partner claims another agricultural homestead in Minnesota; and
    (4) that shareholder, member, or partner does not live farther than four townships or cities, or
a combination of four townships or cities, from the agricultural property.
    Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family farm
if legal title to the property is in the name of an individual who is a member, shareholder, or
partner in the entity.
    (h) To be eligible for the special agricultural homestead under this subdivision, an initial full
application must be submitted to the county assessor where the property is located. Owners and
the persons who are actively farming the property shall be required to complete only a one-page
abbreviated version of the application in each subsequent year provided that none of the following
items have changed since the initial application:
    (1) the day-to-day operation, administration, and financial risks remain the same;
    (2) the owners and the persons actively farming the property continue to live within the four
townships or city criteria and are Minnesota residents;
    (3) the same operator of the agricultural property is listed with the Farm Service Agency;
    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
    (5) the property's acreage is unchanged; and
    (6) none of the property's acres have been enrolled in a federal or state farm program since
the initial application.
    The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, and sign and date the application. If any of the specified
information has changed since the full application was filed, the owner must notify the assessor,
and must complete a new application to determine if the property continues to qualify for
the special agricultural homestead. The commissioner of revenue shall prepare a standard
reapplication form for use by the assessors.
    (i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified agricultural
homesteads for subsequent assessments if:
    (1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;
    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;
    (3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;
    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of one
of the parcels of agricultural land that is owned by the taxpayer; and
    (5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in homestead dwelling. For taxes payable in 2009, the owner must notify
the assessor by December 1, 2008. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
    Subd. 15.[Repealed, 1992 c 511 art 2 s 60]
    Subd. 16.[Repealed, 1993 c 375 art 5 s 43]
    Subd. 17. Owner-occupied motel property. For purposes of class 1a determinations, a
homestead includes that portion of property defined as a motel under chapter 157, provided that
the person residing in the motel property is using that property as a homestead, is part owner, and
is actively engaged in the operation of the motel business. Homestead treatment applies even if
legal title to the property is in the name of a corporation or partnership and not in the name of
the person residing in the motel. The homestead is limited to that portion of the motel actually
occupied by the person.
A taxpayer meeting the requirements of this subdivision must notify the county assessor, or
the assessor who has the powers of the county assessor under section 273.063, in writing, in order
to qualify under this subdivision for 1a homestead classification.
    Subd. 18. Property undergoing renovation. Property that is not occupied as a homestead
on the assessment date will be classified as a homestead if it meets each of the following
requirements on that date:
(a) The structure is a single family or duplex residence.
(b) The property is owned by a church or an organization that is exempt from taxation under
section 501(c)(3) of the Internal Revenue Code of 1986.
(c) The organization is in the process of renovating the property for use as a homestead by
an individual or family whose income is no greater than 60 percent of the county or area gross
median income, adjusted for family size, and that renovation process and conveyance for use as
a homestead can reasonably be expected to be completed within 12 months after construction
begins.
The organization must apply to the assessor for classification under this subdivision within 30
days of its acquisition of the property, and must provide the assessor with the information
necessary for the assessor to determine whether the property qualifies.
    Subd. 19. Lease-purchase program. Qualifying buildings and appurtenances, together with
the land on which they are located, are classified as homesteads, if the following qualifications
are met:
(1) the property is leased for up to a five-year period by the occupant under a lease-purchase
program administered by the Minnesota Housing Finance Agency or a housing and redevelopment
authority under sections 469.001 to 469.047;
(2) the occupant's income is no greater than 80 percent of the county or area median income,
adjusted for family size;
(3) the building consists of one or two dwelling units;
(4) the lease agreement provides that part of the lease payment is escrowed as a
nonrefundable down payment on the housing;
(5) the administering agency verifies the occupant's income eligibility and certifies to the
county assessor that the occupant meets the income standards; and
(6) the property owner applies to the county assessor by May 30 of each year.
For purposes of this subdivision, "qualifying buildings and appurtenances" means a one-
or two-unit residential building which was unoccupied, abandoned, and boarded for at least
six months.
    Subd. 20. Additional requirements prohibited. No political subdivision may impose any
requirements not contained in this chapter or chapter 272 to disqualify property from being
classified as a homestead if the property otherwise meets the requirements for homestead
treatment under this chapter and chapter 272.
    Subd. 21. Trust property; homestead. Real property held by a trustee under a trust is
eligible for classification as homestead property if:
(1) the grantor or surviving spouse of the grantor of the trust occupies and uses the property
as a homestead;
(2) a relative or surviving relative of the grantor who meets the requirements of subdivision
1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph (d), in the case
of agricultural property, occupies and uses the property as a homestead;
(3) a family farm corporation, joint farm venture, limited liability company, or partnership
operating a family farm rents the property held by a trustee under a trust, and the grantor, the
spouse of the grantor, or the son or daughter of the grantor, who is also a shareholder, member, or
partner of the corporation, joint farm venture, limited liability company, or partnership occupies
and uses the property as a homestead, or is actively farming the property on behalf of the
corporation, joint farm venture, limited liability company, or partnership; or
(4) a person who has received homestead classification for property taxes payable in 2000
on the basis of an unqualified legal right under the terms of the trust agreement to occupy the
property as that person's homestead and who continues to use the property as a homestead or a
person who received the homestead classification for taxes payable in 2005 under clause (3) who
does not qualify under clause (3) for taxes payable in 2006 or thereafter but who continues to
qualify under clause (3) as it existed for taxes payable in 2005.
For purposes of this subdivision, "grantor" is defined as the person creating or establishing
a testamentary, inter Vivos, revocable or irrevocable trust by written instrument or through the
exercise of a power of appointment.
History: 1Sp1985 c 14 art 4 s 44; 1986 c 444; 1Sp1986 c 1 art 4 s 13-17; art 7 s 19;
1Sp1986 c 3 art 1 s 33; 1987 c 268 art 5 s 3; art 6 s 15-17; 1988 c 719 art 5 s 10-12,84; art 6 s
9,10; 1989 c 144 art 2 s 5,6; 1989 c 209 art 1 s 29; 1989 c 277 art 2 s 22-27; 1989 c 304 s 137;
1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; art 3 s 10; 1990 c 426 art 2 s 9; 1990 c 480 art 7 s
6; 1990 c 604 art 3 s 13-15; 1991 c 291 art 1 s 15-19; art 12 s 9; 1992 c 511 art 2 s 13-16; 1993 c
375 art 3 s 13,14; art 5 s 17-22; 1994 c 416 art 1 s 15-17; 1994 c 510 art 1 s 7; 1994 c 587 art 5 s
8,9; 1995 c 264 art 3 s 7,8; art 4 s 3; art 11 s 1-4; 1996 c 471 art 3 s 7-9,52; 1997 c 31 art 3 s 4,5;
1997 c 231 art 2 s 18,19,70; 2Sp1997 c 2 s 20; 1998 c 383 s 35; 1998 c 389 art 3 s 8; 1999 c 11
art 3 s 8; 1999 c 227 s 19; 1999 c 243 art 5 s 9-14; 2000 c 490 art 5 s 7-10; 1Sp2001 c 5 art 3 s
27-31; 2002 c 377 art 4 s 14; 2002 c 400 s 10; 2003 c 127 art 2 s 12; art 5 s 16; 2005 c 151 art 2 s
17; art 3 s 11; art 5 s 17-21; 1Sp2005 c 3 art 1 s 12; 2006 c 259 art 4 s 12; 1Sp2007 c 2 art 1 s 23

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