Deferral of Special Assessments Due to Age, Disability
or Military Service
What is a special assessment deferral?
Qualified property owners may defer payment of special assessments until the deferral ends (see When does a deferral end?) The assessment obligation is not reduced or canceled, only deferred. Payment will be due and payable in full at some future date. Interest is compounded annually on a deferred assessment.
How do I qualify for the special assessment deferral?
Minnesota Statutes, Sections 435.193 to 435.195, allows municipalities the option of deferring special assessments when homesteaded property is owned by a person who meets the following criteria:
- Owner(s) are 65 years of age or older and applying for deferral of assessment based on income.
- Or owner(s) are permanently disabled and applying for deferral of assessment based on income/disability,
- Or owner(s) are a member of the Minnesota National Guard or other military reserves who are ordered into active military service, as defined in section 190.05, subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a hardship to make the payments.
How do I apply for a special assessment deferral?
Application forms are available from the City Clerk's office. Or call (507) 328-2900 to have an application mailed to you.
Please note that the application must be filed within 60 days of the date of Council approval of the Assessment project.
What can I do if my application is denied?
City Administrators staff review an application to determine if all requirements have been met. Staff will approve or deny the application. You may appeal a staff decision to the City Council.
When does a deferral end?
An assessment deferral will automatically terminate upon any of the following:
- The death of the owner (if a surviving spouse is not eligible for the deferment),
- The sale, transfer, or subdivision of any part of the property.
- The loss of homestead status on the property
- A determination by the City Council that requiring immediate or partial payment would no longer impose a hardship.
Also, the property owner may decide to terminate the deferral. Once a deferral is terminated, all principal and interest amounts are immediately due.