Minnesota recognizes the service of wounded veterans and those who died in active duty with a major property tax break. In fact, last year, more than 13,000 taxpayers had the market values of their homes reduced by $1.8 billion, the Minnesota Department of Revenue tells us.
But they have to apply, and the deadline for claiming “market value exclusion” on their homes for 2015 is July 1. The 2015 market value is a primary factor for determining property taxes payable next year.
The exemption can erase as much as $300,000 of the market value of a homestead property from taxation. That’s the maximum for any veteran of the U.S. armed forces who is certified as 100 percent disabled by the U.S. Department of Veterans Affairs. Spouses of veterans who died while in active service also qualify. The state tax benefit can last as long as eight years.
Veterans who are considered 70 percent or more disabled can obtain an exemption covering as much as $150,000 of their home’s value. Surviving spouses also can claim it, if the eligible veteran dies. So can a Minnesota taxpayer who has federal approval as a “primary family caregiver” of a veteran with 70 percent or more disability from service, whether or not the veteran owns a home in the state.
Veterans who want to take advantage of the market value exclusion can find applications at their local county assessor’s office. If the application arrives by July 1, the exclusion will apply to property taxes payable in 2016, Minnesota Revenue says. The main exception to that rule is for manufactured homes, which are taxed as personal property in the same year as assessed.
Eligible veterans must apply each year for the tax benefit, according to the state agency.
While generous, the exclusion is detailed and requires service-related documentation, including an honorable discharge. One source to check is Minnesota Revenue’s Property Tax Fact Sheet 13, available at http://www.revenue.state.mn.us/propertytax/factsheets/factsheet_13.pdf.
Of course, we at EricJohn Ltd. also can help veterans deal with the details for this Minnesota tax break.