A homestead classification may qualify for a market value reduction (a tax bill based on a reduced taxable value). A property that is valued at $76,000 will receive the maximum market value exclusion, this exclusion is reduced until a property value exceeds about $412,000, at which point there is no exclusion. To qualify for homestead classification and market value exclusion the property must be occupied as a person’s primary and principal place of residence for all legal purposes. In order to qualify for homestead credit, you must meet all of the following requirements:
- You must be one of the owners of the property or be a qualifying relative of one of the owners.
- You must occupy the property as your primary and principal place of residence for all legal purposes. Token or temporary occupancy does not qualify.
- You must be a Minnesota resident.