Market Value Exclusion on Homestead Property of Disabled Veterans: Minnesota Property Tax

This program provides a market value exclusion for property tax purposes for the homestead property of an honorably discharged veteran who has a service-connected disability rating of 70 percent or higher, surviving spouses of qualifying veterans and service members, and primary family caregivers of qualifying veterans.

What is the fair market exclusion?

The program provides an annual market value exclusion of up to $300,000 on homestead property of qualifying permanently and totally disabled veterans (including veterans with permanent individual unemployability), surviving spouses of permanently and totally disabled veterans who previously received this exclusion, surviving spouses of service members who die while in active service, and primary family caregivers of qualifying disabled veterans. The program provides an annual market value exclusion of up to $150,000 for properties owned by veterans with 70 percent or greater disability, or qualifying primary family caregivers.

What are the qualifications?

For honorably discharged veterans with a service-connected disability of 70 percent or more, the property must be the homestead of the qualified veteran in order to receive this value exclusion. To qualify, the veteran must have been honorably discharged from the United States armed forces as indicated by United States Government Form DD214 or other official military discharge papers, and must be certified by the United States Department of Veterans Affairs as having a service-connected disability. Qualifying veterans with a 70 percent disability rating or higher are eligible for a market value exclusion of $150,000. Qualifying veterans who are totally (100 percent) and permanently disabled are eligible for a market value exclusion of $300,000.

Surviving spouses of permanently and totally disabled veterans who received this exclusion prior to passing away are eligible to continue the maximum $300,000

exclusion in the year of the veteran’s death, as well as five additional taxes payable years, or until such time as the spouse remarries, or sells, transfers, or other­wise disposes of the property – whichever comes first.

A spouse of a member of any branch or unit of the United States Armed Forces who died due to a service-connected cause while serving honorably in active service may qualify for an exclusion up to $300,000 for up to five taxes payable years or until such time as the surviving spouse remarries, or sells, transfers, or otherwise disposes of the property – whichever comes first.

A homestead of a Primary Family Caregiver of an honorably-discharged veteran with a service-connected disability of 70 percent or more who does not own homestead property in Minnesota is eligible for the same level benefit as the veteran would be. A Primary Family Caregiver is an individual approved by the United States Department of Veterans Affairs for assistance as the primary provider of personal care services for an eligible veteran under the Program of Comprehensive Assistance for Family Caregivers as codified as United States Code, title 38, section 1720G.

How do I apply?

Applications are available in your County Assessor’s office and must be made by July 1 for the property to qualify for the exclusion on the current year’s market value for taxes payable next year (except for manufactured homes assessed as personal property, which are taxed in the same year they are assessed).For example, in order to qualify for value exclusion for the 2012 assessment, you must apply by July 1, 2012. The exclusion will then affect your taxes payable in 2013.

Applications are due annually, except for veterans with a total (100 percent) and permanent disability. Any application received after July 1 of the assessment year will be considered effective for the following assessment year.

This fact sheet is intended to help you become more familiar with Minnesota tax laws and your rights and responsibilities under the laws. Nothing in this fact sheet supersedes, alters, or otherwise changes any provisions of the tax law, administrative rules, court decisions, or revenue notices. Alternative formats available upon request.

The content of this and any related posts has been copied or adopted from the Minnesota Department of Revenue Property Tax Fact Sheet 13.