Otter Tail County
IMPORTANT PROPERTY TAX LAW CHANGE
(Homestead credit replaced with Homestead Market Value Exclusion!)
New in 2012: The 2011 Minnesota State Legislature repealed the Homestead Residential Market Value Credit and replaced it with a new program called the Homestead Market Value Exclusion.
In 2011, approximately $4,025,000 was slated to be credited to the county, cities, townships, school districts and special taxing districts of Otter Tail County. Because this funding has been eliminated, most property taxes (homestead and non-homestead, including seasonal, commercial and industrial properties etc.) will increase in 2012.
The following documents containing additional information concerning this important property tax law change can be found below: (documents below are in PDF format)
In 2012 homeowners* with household incomes below $100,780 or whose taxes increase by more than the greater of 12% and $100 may apply (after the 2012 final property tax has been calculated and before August 15, 2012) for the state’s property tax refund and, if qualified, get some of any increase refunded. The form on which to file for a refund, M1PR, can be found at: http://taxes.state.mn.us/pages/current_forms.aspx or obtained by calling 1-800-652-9094.
*Ownership and occupancy as your primary residence are required for eligibility.
*IMPORTANT PROPERTY TAX HOMESTEAD NOTICE*
* This will affect the amount of property tax you pay in 2012, and
it may affect your eligibility for a property tax refund.
Please contact your county assessor to file a homestead application on or before December 15, 2011, if one of the following applies:
You purchased a property in the past year and you, or a qualifying relative, occupy the property for homestead purposes on December 1, 2011; or
You, or a qualifying relative occupy a property for homestead purposes on December 1, 2011, and the property was previously classified as non-homestead.
A qualifying relative for homestead purposes depends on the type of property. For residential property, a qualifying relative can be a parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece of the owner. This relationship may be by blood or marriage. For agricultural property, a qualifying relative can be a child, grandchild, sibling, or parent of the owner or of the spouse of the owner.
Once you have been granted the homestead classification, no further applications are necessary unless they are specifically requested by the county assessor.
You must also contact the assessor by December 15, 2011 if you are the property owner, or a qualifying relative of the property owner, and the use of the property has changed during the past year.
If you should sell, move, or for any reason no longer qualify for the homestead classification, you are required to notify the county assessor within 30 days of the change in homestead status. Failure to notify the county assessor within this 30-day period is punishable by recalculation of tax as non-homestead, in addition to a penalty equal to 100 percent of the homestead benefits.