Relative Homestead Classification

Download Relative Homestead Application (adobe pdf 118 KB)

Residential Property:

Residential real estate that is occupied and used for the purposes of a homestead by a relative of the owner is a homestead, but only to the extent of the homestead treatment that would be provided if the related owner occupied the property. The term "relative" means a parent, step-parent, child, stepchild, grandparent, grand child, brother, sister, uncle, aunt, niece or nephew. The relationship may be by blood or marriage.

Property that has been classified as seasonal recreational residential property at any time during which it has been owned by the current owner or spouse of the current owner will not be reclassified as a homestead unless it is occupied as a homestead by the owner. The prohibition also applies to property that, in the absence of this homestead provision, would have been classified as seasonal recreational residential property at the time when the residence was constructed.

Neither the related occupant nor the owner of the property may claim a property tax refund for a homestead occupied by a relative, unless the property is owned jointly and one of the joint owners occupy the property as their permanent primary residence.

Agricultural Relative Homesteads:

On agricultural property, only the house, garage, and immediate surrounding one acre of land shall be classified as a homestead, except as provided in the following paragraph.

Agricultural property that is occupied and used for the purposes of a homestead by a relative of the owner, is a homestead, only to the extent of the homestead treatment that would be provided if the related owner occupied the property, and only if all of the following criteria are met:

  1. The relative who is occupying the agricultural property is a son, daughter, father, mother, grandson, or granddaughter of the owner of the agricultural property or a son, daughter, grandson or granddaughter of the spouse of the owner of the agricultural property.
  2. The owner of the agricultural property must be a Minnesota resident,
  3. The owner of the agricultural property must not receive the homestead treatment on any other agricultural property in Minnesota.
  4. The owner of the agricultural property is limited to only one agricultural homestead per family under this paragraph.


Neither the related occupant nor the owner of the property may claim a property tax refund for a homestead, occupied by a relative qualifying under this paragraph. For purposes of this paragraph, "agricultural property" means the house, garage, other farm buildings and structures, and agricultural land.

State law (MS 273.124, Subd. 9 & 13) requires that the Social Security numbers and signatures of each occupant who is listed as an owner of the property be listed on this application. If the owner's spouse is not listed as an owner of the property, the social security number of the owner's spouse who occupies the property must also be furnished along with the owner's. In either case, the application must also be signed by each owner and his/her spouse who occupies the Property. If there is not enough space for all required signatures and Social Security Numbers, please attach a separate piece of paper with then to this application.

Security numbers are confidential information. Under state law (MS 273.124, Subd. 13) they may be given by your County Assessor to the Minnesota Department of Revenue to determine whether you or the owner of the property to whom you are related have applied for the homestead classification for other properties.

Penalties

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 one 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 correct 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 (MS 273.124, Subd. 13). 

Agricultural Homestead Treatment of Non-Contiguous Lands

The agricultural homestead classification has been expanded for farms of at least 40 acres where the farm owner does not live on the farm, but lives within four cities or townships from the farm, if the owner actively farms the land, is a Minnesota resident, and neither the owner(s) nor their spouse claim another agricultural homestead in Minnesota.

This expanded treatment replaces the old "Agricultural homesteads: special provisions" found in Minnesota Statute 273.124 subdivision 14 par. (a) that provided for homestead treatment on noncontiguous farmland if certain conditions were met. Although this provision remains in law, qualification is limited only to those who qualified and received this "special provision" for the 1998 assessment. Any property owners in a county receiving this classification should continue to receive it as long as they continue to meet the conditions set out in that statute. The provision under Minnesota Statute 273.124 subdivision 14 par. (a) only applies to those who qualified for that provision for the 1998 assessment.