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:
Market Value Exclusion up to $150,000 on homestead property for:
- veterans with 70% to 100% service-connected disability
- veterans with total (100%) and permanent service-connected disability or with permanent individual unemployability
- surviving spouses of veterans who were permanently and totally disabled,
- surviving spouses receiving Dependency and Indemnity Compensation (DIC), and
- surviving spouses of service members who die while serving honorably in active service
Apply for Exclusion
Applications are available at the County Assessor's Office, with your Veteran's Service Office, or you may download the applications:
- Application for Market Value Exclusion on Homestead Property of Veterans with a Disability (PDF)
- Application for Market Value Exclusion on Homestead Property for a Primary Family Caregiver of a Veteran with a Disability
- Application for Market Value Exclusion on Homestead Property for a Surviving Spouse of a Veteran who was Permanently Disabled or a Service Member Who Died While in Active Service
- Applications must be made by December 31st to qualify for the exclusion on the current year’s market value for taxes payable next year. Applicant must own and occupy by December 31st to be eligible for the exclusion in the next payable tax year.
- Veterans with a disability rating of 70 percent or higher may need to reapply annually.
Changes in Status
If you are receiving the Veterans with Disability Exclusion you do not need to reapply after the initial approval, so long as you are registered with the Scott County Veterans Office and they are able to verify your status. If they are unable to verify your status or your status has changed, you must reapply. 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.