Special Homestead for the Blind and Disabled
March 2004
Minnesota, like other states, utilizes specific property tax relief measures to lower the tax burden on homestead property. There are programs that limit, defer, and exclude market value from property taxation. There are also market value tax credits and different property tax classification rates used to reduce the property tax. The special homestead classification known as Class 1b property is one example of a particular mechanism that the state employs to provide a reduced class rate to property occupied by a qualifying blind or disabled person. It differs from the regular homestead classification because the qualification is specific to the person and the disabling condition rather than being predicated on the use of the property. Like the regular homestead, the individual receives this tax break in perpetuity until the property changes ownership or the eligibility requirements are no longer met.
Who is eligible to receive a special homestead classification?
To receive a special homestead, the property owner or qualified relative must: (1) be a Minnesota resident, (2) own the property or be related to the owner as to the extent prescribed in property tax law, (3) occupy the property as the primary place of residence, and (4) must be either blind or disabled. The blind individual must be certified as legally blind, and the disabled person must be classified as permanently and totally disabled.
What filing requirements must be satisfied to obtain the special homestead classification?
Applications have to be submitted before October 1st to be effective for property taxes payable during the following calendar year. A blind person must provide a letter or current eye report signed by an eye doctor stating that owner/occupant is legally blind including diagnosis, acuity, and the onset date of legal blindness. A disabled individual must provide proof of disability, such as a letter from a qualified agency certifying that you are totally and permanently disable and receive disability payments. The applicant must have disability income to qualify but may have any amount of other income because the income requirements that were established during the program's inception have been removed beginning with the 2004 assessment. Furthermore, if the disabled person is a veteran who has received or is eligible to receive a grant from the Veterans Administration for a specially-adapted housing unit, a copy of this letter should be included with the application.
How does a person apply for the special homestead classification?
To apply for the special homestead classification, a person must complete the application for Special Homestead Classification: Class 1b Propery (abode pdf 55 kb). Attach all proper documentation and mail to your county assessor by October 1.
Is a qualified blind or disabled person required to file for the special homestead classification each year?
No, it is not necessary to annually file an application for the special homestead classification. Once the person has been approved, this classification is renewed automatically each year until the property changes ownership or the eligibility requirements are no longer met. If the owner/occupant moves, this person must complete a new application. If there are changes due to death or improvement in the condition of the individual because of medical advancements, notification needs to be sent to the county assessor's office.