Property Tax Exclusion for Disabled Veterans

On Friday, March 7, 2008, the governor signed into law the Omnibus Technical Corrections Tax bill. Included in this legislation were two provisions providing full or partial valuation property tax exclusion for homesteads of disabled veterans with a disability rating of 70% or greater, as determined by the United States Department of Veterans Affairs.

The Property Tax Exclusion for Disabled Veterans program provided an annual market value exclusion of up to $300,000 on homestead property of a qualifying disabled veteran.

Qualifications
A property must be the homestead of a qualified veteran in order to receive this value exclusion. To qualify, a veteran must have been honorably discharged from the United States armed forces as indicated by United States Government Form DD214 or other official military discharge papers, and must be certified by the United States Veterans Administration as having a service-connected disability. In the case of agricultural homesteads, only the house, garage, and immediately surrounding on acre of land will qualify for the exclusion. If a property qualifies for this market value exclusion, the property does not receive the residential homestead market value credit provided under Minnesota Statute 273.1384, subdivision 1.

Qualifying veterans with a 70% disability rating or higher are eligible for a market value exclusion of $150,000.

Qualifying veterans who are totally (100%) and permanently disabled are eligible for a market value exclusion of $300,000.

Application
Applications are available in your County Assessor’s Office. Applications must be made by July 1 to qualify for the exclusion on the current year’s market value for taxes payable next year. For example, in order to qualify for value exclusion for the 2008 assessment, you must apply by July 1, 2008. The exclusion will then affect your taxes payable in 2009. Veterans with a disability rating of 70% or higher will need to reapply annually. Veterans who are totally and permanently disabled do not need to reapply annually. Veterans who are totally and permanently disabled do not need to reapply after the initial approval. The property will continue to qualify for the value exclusion until there is a change in ownership or use of the property. A surviving spouse owns the property and resides there, until the spouse sells, transfers, or otherwise disposes of the property.

Information Needed
Qualifying veterans may supply the United States Government Form DD214 or other official military discharge papers, as well as documentation from the Veterans Administration verifying disability status. The Veterans Administration may also provide a letter that encompasses all required information (both discharge and disability).

If you need any of this documentation, please contact the Veterans Administration.

Questions
This is only a summary of the Valuation Exclusion on Homestead Property for Disabled Veterans Program. For more information, or for answers to specific questions, contact your County Veterans Service office.

Update
We have been informed that the U.S. Department of Veterans Affairs, St. Paul Regional Office will be sending letters to all eligible veterans within the next two weeks. These letters will meet all application requirements by providing your level of disability and your character of discharge. You will need to take the letter and the completed application form to the Scott County Assessors Office. Also the application date has been extended to September 1, 2008.