Download This Old House and This Old Shop legislation

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