Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
This Old House and This Old Shop HF 414 (Youakim)/SF 1037 (Latz) The League of Minnesota Cities and Metro Cities support community reinvestment through extension of the “This Old House” (residential) and “This Old Shop” (commercial/industrial) valuation exclusion programs. What it does “This Old House” and “This Old Shop” provide a tool to spur reinvestment in communities through targeted assistance to homeowners and business owners to incent owner-investments in their properties. Many communities in the metro region, and throughout the state, have aging homes and commercial structures in need of significant repair and reinvestment. Such reinvestment helps to prevent neighborhoods from falling into disrepair and assists in community preservation and revitalization efforts. “This Old House” and “This Old Shop” provide a tool to assist residents and business owners in cities to maintain and preserve housing stock and Main Street property. How it works “This Old House” and “This Old Shop” allow owners of qualifying single-family homes, owneroccupied duplex and triplexes, and small businesses to defer the increase in tax capacity from repairs or improvements to their homestead property or business. When a homeowner or business owner improves their property, the added assessed value of the improvement is not added into their taxable value for 10 years. Assessed value improvements are then phased in after 10 years, over two or five years, depending on the value of the assessment. If the house is sold before the 10 years are up, the assessed value is added back on for the future buyer. The program’s age limit qualifications includes owner-occupied properties that are at least 30 years old. Commercial property that is at least 30 years old and valued at $2 million or less is eligible for “This Old Shop.” History The 1993 Legislature enacted the "This Old House" law (M.S. 273.11, subd. 16). The program allowed homestead property owners to exclude all or a portion of the value of qualifying improvements made to older homes. The program expired for new qualifiers as of January 2, 2003, but remains for existing participants through the term of their exclusion (2017 at the latest). Beginning with assessment year 2004, excluded value has begun returning to the tax rolls as the ten year exclusion for the first year's participants has expired. “This Old Shop” began in 1997 and was effective for improvements made up to 2003. Questions? Contact: Heather Corcoran at [email protected] or (651) 281-1256 Charlie Vander Aarde at [email protected] or (651) 215-4001