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- THIS OLD HOUSE Minnesota Statute 273.1 l,subdivisions 16& 17 provide for exemption from property tax for all or a portion of the value of improvemerits made to homes 35 years of age or older. This law,commonly referred to as"This Old House"is effective for improvements made through January 2,2003. This program provides for the value of new improvements made to qualifying properties to be deferred from taxation for up to 10 years. The value of the improvements would then be phased in over a period of 5 years. To qualify for this exemption,your property must meet thc follorving requirements: 1.The property must be 35 years of age or older at the time the improvements commence. 2. The property must be receiving the homestead classificltion or will be receiving the homestead classification by December ' lst of the year the improvement is begun. This includes property classified as residential homesteads(including duplexes& triplexes),relative homesteads, disabled homesteads,agricultural homesteads,townhomes,and condominiums. 3. The total estimated market value of the property on January 2nd of the assessment year in which the improvements are made(residential property=land and shuctures;agricultural property=house,garage,& 1 acre)must not exceed$150,000 unless: the property is located in a city or town in which 50%or more of the homes were constructed before 1960 based on the 1990 census,and the city or town's median family income based upon the 1990 federal census is less than the statewide median family income based upon the 1990 federal census. (The cities of Minneapolis,Hopkins,Excelsior,and Spring Pazk meet these requirements.) Properties with an estimated market value of$300,000 or more on January 2nd of the assessment year in which improvements are made do not qualify for value exemption. The requirements in#3 apply only to improvements that werc bcgun,and applications that were made after,July 1, 1994. You must make application with the county assessor by July 1 in order to qualify your property for exemption from the property tax. Once an improvement has been designated for exemption,it cannot be repealed or replaced. THE DEADLINE FOR MAKING APPLICATION DEPENDS ON WHETHER YOUR CITY OR TOWN REQUIRES BUII.DING PERMITS. If your city/town requires building permits,you must first obtain a building permit for construction of the improvement before the work commences. You must complete the application for the exemption and return it to the assessor's office before July lst of the assessment year in which improvement is first added in order to qualify for exemption in that year. If your city/town does not require building permits,you must make application for exemption BEFORE the improvement is begun. If your city/town requires building permits only on certain types of improvements,you must make application for exemption of those improvements not requiring a building permit BEFORE the improvement is begun. An application for exemption must be made within 3 years of the date of the permit. The property would then qualify for the remainder of the 10 year exemption period. * Only improvements made to the residence and garage,or the construction of a new garage qualify for the exemption. * Only improvements with a value of$1,000 or more made to the house and gazage of a property receiving a homestead classification qualify for exemption from property tax. * The exemption may be applied to no more than three separate improvements made to the house and garage. Improvements made to the site surrounding the home do not qualify for exemption. * The value exemption is limited to one two-car garage(600 square feet)per residence. NOTE: If you are converting an existing garage into living space,you must clearly state on the application your intent to convert the existing garage into living space. *A maximum of up to$50,000 of the improvement value added by the assessor may be considered for the program. * Houses 35-69 years old qualify for 50%of the assessor's improvement amount up to a maximum exemption amount of '.$25,000. Houses 70 years of age or older qualify for up to 100%of the assessor's improvement amount to a maximum of $50,000. " * If a house is moved from its original site and is at least 35 years old,additional improvements done to the property may qualify. The following improvements do not qualify for exemption: *If more than 50%of the square footage of a house is voluntarily razed or torn down,the original house is deemed to no longer exist;and,as a result,the value of any improvements would not qualify for exemption. *If any combination of improvements double the size(above grade gross building area)of a structure,any improvement that further increases the size of the structure will not qualify for exemption. IF YOUSELL OR OFFER YOUR PROPERTY FOR SALE, YOU MUST DISCLOSE TO PROSPECTIVE BUYERS WNETHER ANY IMPROYEMENTS MADE TO YO UR HOME ARE EXEMPT FROM THE PROPERTY TA.� YOUARE ALSO REQUIRED TO NOTIFY B UYERS THAT THE EXEMPTION WILL TERMINATE WHEN THE PROPERTY IS SOLD. INADDITION,IFA PROPERTY LOSES ITS HOMESTEAD STATUS, THE EXEMPTION EXPIRESAS OF THE NEXT ASSESSMENT DATE. . Upd9/97 TO APPLY: Call City Assessor at 473-1844