To qualify for the homestead classification you must:
*Occupy the property as your primary residence
*Be one of the owners of the property or a qualifying relative of the owner
*Be a Minnesota resident
A person may have only one homestead and that must be their place of residence on January 2nd.
To apply for the homestead classification, you must fill out an application (click to print application).
You may also call the Assessor's Office at (320) 591-1632 or toll free at (800) 450-7463 ext. 1632, stop by the Assessor's office in person at 635 Northridge Dr NW, Suite 260, Pine City, MN 55063, or request an application by email, Jacqueline.Ness@co.pine.mn.us.
To qualify for a homestead, a property must be both owned and occupied by the owner on January 2nd of the assessment year for a full homestead, or on December 31st of the assessment year for a mid-year homestead. You must also be a Minnesota resident. Applications must be received by December 31st.
A CRV (Certificate of Real Estate Value) must be filed at Auditor's office to receive the homestead classification if the consideration is greater than $3,000.
The interest of a purchaser under a contract for deed entered into prior to January 2nd is sufficient to entitle the property to a homestead classification if the purchaser is in actual occupancy of the property on January 2nd.
Residential Relative Homestead:
To qualify for a residential relative homestead the property must be occupied by a qualifying relative of the property owner(s). For a residential relative homestead, a qualifying relative is defined as the owner's child, stepchild, daughter-in-law, son-in-law, parent, stepparent, parent-in-law, grandchild, grandparent, brother, brother-in-law, sister, sister-in-law, aunt, uncle, niece or nephew. In the case of residential relative homesteads, the owner(s) of the property does not have to be a Minnesota resident(s). However, the occupying relative must be a Minnesota resident. The qualifying relative must occupy the property by December 31st of the assessment year in order for the property to be classified as homestead for taxes payable in the following year. Applications must be received by the assessor's office by December 31st.
State law prohibits a property from being classified as relative homestead if at any time during the current ownership the property was classified as seasonal residential recreational (cabin).
Agricultural Relative Homestead:
Beginning in 2021, Agricultural relative homesteads have identical definitions of a qualifying relative as Residential relative homesteads. However, in the case of agricultural homesteads, BOTH the owner and the qualifying relative must be Minnesota residents. Additionally, neither the owner nor his/her spouse receives another agricultural homestead in Minnesota. Lastly, the owner of the agricultural property is limited to only one agricultural homestead per family.
Neither the related occupant nor the owner of the property may claim a property tax refund for the homestead occupied by the relative, unless the property is owned jointly and one of the joint owners occupies the property as their primary residence.
If, at any time, a different relative from the one listed on the application subsequently occupies the property, the owner must notify the assessor within 30 days of the change in occupancy.
Special Agricultural Homestead:
The Special Agricultural Homestead provision extends homestead status to property owners who do not live on their farm, but actively farm their land or who have a spouse or a child who actively farms the land. Homestead status can result in lower property taxes than property that is not homesteaded.
You must file the Special Agricultural Homestead application every year by December 31st.
Do I qualify for the Special Agricultural Homestead?
The agricultural property in question must be at least 40 acres. The person who owns the farm must be a Minnesota resident, not claim another Minnesota agricultural homestead (and neither can their spouse) and live within four townships or cities of the property. The person who is actively farming the land must be a Minnesota resident, live within four townships or cities of the property and own the land, or be the spouse of the owner, the child of the owner or the child of the owner's spouse. The relationship can be by marriage or blood.
The person who is actively farming must participate in the day-to-day labor, decision-making, and management of the claimed homestead. They also must assume all or part of the financial risks of the farm. The person does not have to live on the farm.
What do I need to apply?
The application forms are available from the assessor's office. Owner's who have applied and qualified in the previous year will get a re-application mailed to them every year around August. You must also provide a copy of your 156EZ from the Farm Service Agency as well as your farm number. And lastly, you must provide a copy of your Schedule F form or equivalent partnership/corporation form that was filed with the federal income tax return of the person actively farming. An affidavit from your tax preparer or attorney verifying that you have filed the form can be substituted instead of the form.
An application for Special Agricultural Homestead can be obtained from the Assessor's Office at the Pine County courthouse located at 635 Northridge Dr NW, Pine City, MN 55063, or by calling the assessor's office at (320) 591-1632, or toll free at (800) 450 - 7463 ext. 1632.
OTHER IMPORTANT HOMESTEAD INFORMATION:
Social Security Numbers and Homesteads
State law (MS 273.124, Subd. 13 par. c ) requires that every property owner applying for homestead classification must provide the county assessor with a social security number of each occupant who is listed as owner of the property on the deed of record, including each owner's spouse who occupies the property. Each owner and their spouse who occupies the property must sign the application. In the case of a relative homestead, both the owner and the qualifying relative must provide a social security number and sign the application.
Social security numbers provided to this office are considered to be confidential information and will NOT be disclosed to the public. Under State law (MS 273.124, Subd. 13 par.g,h ) they may be given by the County Assessor to the Minnesota Department of Revenue to determine whether you have applied for the homestead classification for other properties.
Penalty for false homestead application
A property owner who obtains or attempts to obtain homestead classification for a property other than his or her primary place of residence or the primary place of residence of his or her relative is under state law subject to a fine of up to $3,000 and /or up to a year of imprisonment (MS 609.41 ). In addition, the property owner will be required to pay all tax which is due on the property based on its current property class plus a penalty equal to the difference between the tax based on the homestead classification and that based on the property's correct class.
The Minnesota Department of Revenue is of the opinion that it is inappropriate for a taxpayer to retroactively attempt to change their homestead status. A homestead application is a legal document. By completing one, and thereby securing the corresponding tax benefit, the taxpayer is certifying that they are residents of Minnesota, the property they are claiming as their homestead is their primary place of residence, and they have a sufficient ownership interest to entitle them to the homestead classification. A homestead application cannot be rescinded or undone by the applicant once application has been made.