Senator Jeff Howe (R-Rockville) introduced legislation that seeks to modify property tax deadlines for Homestead and Disabled Veteran Exclusions. Under current law, any property used as a homestead by December 1 will receive homestead classification for the current assessment year, and if an application is submitted by December 15, the owner of that homestead can apply for a valuation exclusion. This proposal would change the due date for valuation exclusion applications from December 15 to December 31, meaning that if the owner bought and occupied a home anytime in the calendar year, including all of December, they can apply to receive the homestead credit for the following year.

“This bill is good for our veterans and it aligns and simplifies current laws,” said Senator Howe. “Currently, the homestead of a disabled veteran becomes eligible for a valuation exclusion in the current assessment year if the application is received by December 15. A Hennepin County veteran approached me on this issue because she owned and occupied a new home on December 10, and missed that December 1 deadline, so the person who bought her old home got an almost-$4,000 credit, and she ended up having to pay an extra $4,000 on the new home she occupied on December 10, because she wasn’t able to apply for the disabled veteran exclusion. She missed the deadline by a matter of days. This is just wrong.”

In Minnesota, 70-100% disabled veterans may qualify for a property tax called the Disabled Veterans Homestead Valuation Exclusion, which for property tax purposes, would reduce the assessed value of a home by up to $300,000. To receive this benefit, veterans must own and occupy the homestead home. If a veteran purchases a home anytime in December, they miss the December 1 deadline and are not able to receive homestead status until the next taxable year, delaying their qualification for the property tax benefits.

“There’s no reason our veterans shouldn’t be able to receive a homestead credit if they’re filing the application in December,” added Senator Howe. “This has affected multiple veterans and moving these dates to December 31 will alleviate further issues for any veterans looking to move during December.”

This bill received its first hearing in the Property Taxes Subcommittee last week.