Veteran's with a Disability Exclusion
Veteran's with a Disability Homestead Market Value Exclusion
In 2008, the Minnesota Legislature enacted a market value exclusion for honorably discharged veterans with service-connected disabilities. This is not a property tax exemption and it is not a tax forgiveness program. Rather, it lowers the property tax liability by subtracting the amount of the exclusion from the assessor’s estimated market value to arrive at a lower taxable market value.
This program provides two different levels of market value exclusions:
- For veterans with 70% to 100% service-connected disability, the market value exclusion is up to $150,000 on homestead property; or
- For veterans with total (100%) and permanent service-connected disability or with permanent individual unemployability, the market value exclusion is up to $300,000 on homestead property.
Apply for Exclusion
Applications are available at the County Assessor's Office, with your Veteran's Service Office, or you may download the applications:
- Applications must be made by December 15th to qualify for the exclusion on the current year’s market value for taxes payable next year.
- Veterans with a disability rating of 70 percent or higher will need to reapply annually.
Changes in Status
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 can continue the exclusion under this provision until the spouse sells, transfers, vacates, or otherwise disposes of the property (whichever occurs first).
Please contact our office if there is a change in the status of disability or if the veteran has passed away.
Basic Provisions of the Program
The property must qualify for homestead before being granted valuation exclusion.
- For agricultural property, only the house, garage, and immediately surrounding one acre of land qualify for the valuation exclusion.
- Neither residential nor agricultural homesteaded properties are eligible to receive the homestead market value credit. Excess agricultural land and buildings will continue to receive the agricultural credit.
- Relative homesteads do not qualify for this program. A property must be both owned and occupied by a qualifying disabled veteran before being eligible for the market value exclusion.