Property owners may declare their principal residence as a homestead and exempt the property from 18 mills of school operating tax. In order to qualify as a homestead property, the property must be occupied as a homestead by May 1 of the first year claimed. Partial homestead exemptions are also available for multi-family dwellings. The 18 mill school operating tax exemption also extends to agricultural classed property. Non-agricultural classed property devoted primarily to agricultural uses may also be eligible for the exemption. Please contact the assessor's office for additional information regarding homestead and qualified agricultural exemptions.
In the year following a sale or transfer of ownership of real estate, the transferred property's state equalized value becomes relevant. When a transfer of ownership occurs, statutes require the removing of the value cap and the adjustment of the taxable value to that of the following year's state equalized value. This means that the taxable value will equal the state equalized value in the year following the transfer of ownership. It is important to note that the assessor does not utilize 50% of the property's selling price as the new State Equalized Value (SEV). This is the most common misconception regarding the uncapping of taxable values. The following year's SEV is determined by the same method as if the property had not transferred.