Laserfiche WebLink
I <br />I <br />I <br /> <br />#1 <br /> <br />MINNESOTA <br /> <br />DEPARTMENT OF REVENUE <br />PROPERTY EQUALIZATION DIVISION <br /> <br />BULLETIN <br /> <br />SEPTEMBER, 1981 <br /> <br />The 1981 Legislature made numerous changes to the the state's real estate classification <br />law. Thcsc changes affect the method to be used in extending the homestead credit, the <br />state school agricultural credit and the assessed values. Enclosed are several examples <br />of these extensions. <br /> <br />Thc rules for thc treatment of homesteads in various situations are as follows: <br /> <br />Non-Agricultural Homesteads <br /> <br />Full Homesteads <br /> <br />Thc first $54,000 of the estimated market value is assessed at the lower <br />percentages (i.e. $27,000 X 16% and $27,000 X 22%). <br /> <br />e <br /> <br />Tile homestead tax credit is based on the homestead credit gross tax less all other <br />credits*. Special assessments are not to be considered part of the gross tax. <br /> <br />The qualifying tax amount for the Minnesota Property Tax Refund (Line 1, 1982 <br />Property Tax Statement) is the homestead credit gross tax less all other credits <br />other than the homestead credit on the dwelling and land but no more than 10 acres <br />of land. <br /> <br />Thc qualifying tax amount for the Special Property Tax Refund (Line 3, 1982 <br />Property Tax Statement) is the gross tax less all other credits other than the <br />homestead credit on the dwelling and ]and but no more than 10 acres of land. <br /> <br />Fractional Homesteads <br /> <br /> t;. <br />A fractional amount of the first $27,000 of the esbmated market value is assessed <br />at 16%. This fractional amount is determined by multiplying the owner-occupant's <br />fractional ownership interest in the property by $27,000, or if the total value is less <br />than $27,000, then by the total value. The balance of this $27,000, if any, is <br />assessed at the non-homestead rate of 28%. <br /> <br />If the total value of the property is more than $27,000, a fractional amount of the <br />second $27,000 of estimated market value is assessed at 22%. This fractional <br />amount is determined by again multiplying the owner-occupant's fractional <br />ownership interest in thc property by the second $27,000. Or, if the total value of <br />the property is more than $27,000 but less than $54,000, then a fractional amount <br />of the value in excess of $27,000 is assessed at 22%. This fractional amount is <br />deter~nined by multiplying the owner-occupant's fractional ownership interest in <br />the property by the second $27,000 or by the amount in excess of ~he first $27,000 <br />but ]ess than $54,000. The balance of the second $27,000 or less is assessed at <br />28%. <br /> <br />o <br /> <br />The homestead tax credit is based on the homestead credit gross tax attributable <br />to the ho~nestead portion of the property less all other credits. The maximum <br />credit is the owner's fractional interest multiplied by the full credit (i.e., one-half <br />homestead, 1/2 X $650 = $325). <br /> <br />NOTE: *Homestead Credit Gross Tax less any other credits - See Page 4 <br /> <br />-1- <br /> <br /> <br />