Homestead information

Your home can be a homestead.

What is a homestead?

Homestead is a classification granted to properties that are owner-occupied or are occupied as a person’s primary place of residence.

The homestead classification is not automatic or transferred to you by the seller at the time of sale. You must apply for the homestead classification in your name after you purchase and move in.

Who is eligible for homestead?

Any property owner who is a Minnesota resident and occupies the property as his/her primary residence may apply for the homestead classification.

To be eligible you must own and occupy the property as your primary residence between January 2 and December 1 of the current year, in order for taxes payable the following year to be classified as homestead. Application must be made no later than December 15 of the current year.

State law also provides for the homestead classification to be extended to properties that are occupied by a qualifying relative of the owner. Special application is required and must be made in person by the relative occupying the property. For more information on the relative homestead classification, contact the Assessor’s office at 952.939.8229 or assessor@eminnetonka.com for application instructions.

What are the tax benefits?
Homestead properties may pay a lower property tax than non-homestead properties. In addition, to be eligible for other special property tax programs—such as the Minnesota Property Tax Refund—properties must be classified as a homestead.
How do I apply?

Before applying, you will need to locate your ownership documents. You would have received copies when you attended the closing for your property. Ownership documents consist of a deed (most likely a Warranty Deed) and copy of a Certificate of Real Estate Value. The deed can be identified by its name located in the upper left hand corner of the document. Other deeds that are common are Quit Claim, Contract for Deed (4 pages), Trustee’s Deed, and Personal Representative’s Deed. Your documents may possibly have a cover sheet that states “Homestead Instructions” which is an informational cover sheet provided by the closing company to guide you in the application process.

There are two ways to file for homestead:

  1. Visit City Hall, and bring along your ownership documents. You will be asked to complete a homestead application. Copies of your documents will be made to attach to the application.
  2. You can also apply by mail. To do so, call the Assessor’s Office for an application form, or download and print out the homestead application below.

When applying by mail, please ensure that all sections of the form are completed thoroughly and that you attach copies of your documents. Missing information will delay the processing of your application.

Mail the form and documents to:

City of Minnetonka
Assessor’s Office
14600 Minnetonka Blvd
Minnetonka MN 55345

All applications for homestead will receive a homestead declaration card (see below) in the mail approximately 30 days after filing.

It is important that this card be completed and returned in order to complete the homestead application process.

If you have questions on filing for homestead or on completing the form please feel free to contact the Assessor’s Office at 952.939.8200.

What is the Homestead Market Value Exclusion?

2011 law change

What changed?

During the legislative special session in July of 2011, the Market Value Homestead Credit (MVHC) was repealed in the 2011 budget bill.

However, to preserve a level of tax relief for homeowners, they created a new program called the Homestead Market Value Exclusion (HMVE).

As a transition year, the change is impacting property taxes on all homestead and non-homestead property for taxes payable in 2012.

How the change may impact your 2012 property taxes

Qualifying homeowners will receive a value exclusion, which means that they will pay taxes on only a portion of their home’s value. This may be confusing when homeowners receive their Proposed Property Tax Statement. The notices show a change in value of homestead property, but do not specify how much of the change is due to the HMVE program. The taxable value listed on your Proposed Property Tax Statement has been reduced by the amount of the homestead exclusion and does not show your actual estimated market value calculated by the assessor’s office.

The transition from MVHC to HMVE is only one of the several factors that can impact property tax bills. Other factors include changes in valuation of properties and spending decision of the local taxing jurisdictions such as counties, cities, and schools.

Where can I get more information?

We have provided some links below for more detailed information regarding the details of the change from the Market Value Homestead Credit to the Homestead Market Value Exclusion. We have also included some background information, why the state change, the impact of the change on cities, and the impact on taxpayers.

The HMVE is an exclusion for qualifying homeowners, meaning they will pay tax on only a portion of their home’s value that is occupied as their primary residence. To qualify for the homestead market value exclusion, the following criteria must be met:

  • You must be one of the owners of the property, or be a qualifying relative of at least one of the owners. A qualifying relative of the owner would include a son, son-in-law, daughter, daughter-in-law, stepchild, parent, parent-in-law, stepparent, grandchild, grandparent, grandparent-in-law, brother, brother-in-law, sister, sister-in-law, aunt, uncle, niece, or nephew.
  • You must occupy the property as your primary residence.
  • You must be a Minnesota resident.

New homeowners and relatives who wish to apply for homestead classification must apply in person at City Hall. You need to bring Social Security numbers for all owners or relatives of owners who occupy the property, a copy of the certificate of real estate value, and a copy of the ownership document (warranty deed, contract for deed, quit claim deed, etc.). Even though Social Security numbers are private information under Minnesota state law, they must be provided before a homestead exclusion will be granted. Social Security numbers are used to determine if owners or relatives of owners have applied for more than one homestead in the state.

After the application is processed, a homestead declaration card (PDF) will be mailed to you. This card must be signed and returned to the Minnetonka Assessor’s office.

The homestead application is automatically renewed each year for regular homesteads. No further action is required until the property is sold, rented, is no longer used as the primary residence, or the owner is no longer a Minnesota resident. In these instances, you must notify the Minnetonka Assessor’s office within 30 days of the change.

For relative homesteads, a renewal is required and this is mailed to the relative occupant in early December. This renewal is required to maintain the relative homestead status each year.

For more information, contact the Minnetonka Assessor’s office at 952.939.8220.

How is the Homestead Market Value Exclusion applied?

All homestead property less than $413,800 in value will receive a Homestead Market Value Exclusion. The exclusion along with the total estimated market value will be identified on the valuation notices that are mailed in March.

The Homestead Market Value Exclusion excludes from taxation 40 percent of the value on the first $76,000 of a property’s value. The amount excluded is reduced as the value rises above $76,000 (the exclusion reduction is equal to nine percent of the value above $76,000). Homesteads that exceed $413,800 in value will receive no homestead exclusion.

Are the homestead credits on all properties the same?

No. The homestead credit is based on a number of factors. First, the homestead credit changes with the property’s market value. Second, not all properties are eligible for a full (100%) homestead credit. Third, there are other credits attached to homesteaded property, such as credits for the blind, disabled, paraplegic or qualified disabled veterans, that may also affect the amount of the homestead credit received.