A property receiving a property tax exemption does not pay general property taxes. However, property exempt from the general property tax may be required to pay for special assessments and services or pay a portion of the income from the property instead of the general property tax.
Eligibility requirements
Under Minnesota law, all property except tribal lands is taxable. Since taxation is the rule and exemption is the exception, it is up to the property owner to prove their property qualifies for exemption. Ownership, use and necessity of the ownership are the three key elements in determining exemption. For a complete list of properties that may qualify for a property tax exemption, refer to Minnesota Statute 272.02.
Property tax exemption is not automatic. Organizations must apply for it.
Applying for exemption for the first time
Owners applying for a property tax exemption must submit one of the following forms:
Exempt Application
Exempt Application of Purely Public Charity
Exempt Application for Nursing Homes
The County may request the following documents:
- Articles of Incorporation and Bylaws
- Proof of Internal Revenue Code 501(c)3 granting tax exempt status
- IRS Form 990 or Income and Expense Financial Statements
- Other documents and records unique to a specific property may be requested
Conversion to exempt or taxable uses
- Property that is exempt on Jan. 2 and if for any reason loses it exemption prior to July 1 of that year, shall be placed on the assessment rolls for that year.
- Property that is taxable as of Jan. 2 of an assessment year, which may become eligible for exemption prior to July 1 of that year, may be exempt for that assessment year if it is used for an exempt purpose.
Reapplication required every three years
Minnesota law requires certain exempt organizations to reapply for property tax exemption every three years. If you are reapplying for a property that is already exempt and the status of the supporting documents filed with your initial application have not changed, then the only documents you need to send are:
- One of the following exempt application forms:
Exempt Application
Exempt Application of Purely Public Charity
Exempt Application for Nursing Homes
- IRS Form 990 or Income and Expense Financial Statements
Apply by email
Send applications to assessing.services@co.dakota.mn.us.
Apply in person
Take the form to any of Dakota County's service or license centers.
Apply by mail
Mail the completed form to Dakota County Assessing Services, 1590 Highway 55, Hastings MN 55033-2343.
