Special Assessment Deferrals
What is a Special Assessment Deferral?
As the name implies, it is a deferral of the special assessment amount that must be paid, with compounded interest, at some time in the future. It is not an exemption, exclusion, or forgiveness of any amount due.
Who Authorizes the Deferral of Special Assessments?
Minnesota Statues, Sections 435.193 through 435.195 authorizes cities to defer the payments of special assessments. On September 6, 2005, by Resolution Number 2005-78 (PDF), the City of Edina Council established the criteria by which special assessments may be deferred.
What Assessments Are Eligible for the Deferment?
Only special assessments for permanent improvements are eligible. Current and/or delinquent service charges are not eligible. Service charges include, but are not limited to water and sewer service, tree removal, weed removal, storm drainage charges, street maintenance, administrative citations and the clean up of grossly unsanitary dwellings.
How Do I Qualify for the Special Assessment Deferment?
To qualify for the special assessment deferment, all of the following are required:
- The applicant must be 65 years of age or older, or retired by virtue of a permanent and total disability. A permanent and total disability is defined as a condition which is permanent by nature and which totally incapacitates the person from working at an occupation that affords the person an income. Members of the National Guard, or other reserves ordered to active military service for whom it would be a hardship to make payments, may also qualify.
- The applicant must be the fee simple owner of the property or must be a contract vendor for fee simple ownership, and
- The property for which deferment is requested must be classified and taxed as homestead property by the City Assessor as of the date the application for deferment is made. The first year’s installment of the proposed special assessment must, either alone or in the aggregate with installments of other special assessments due against the property and payable in the first year of the proposed assessment, total more than 2% of the applicant’s total household income as defined by Minnesota Statues, Chapter 290A.
- The deferral becomes a lien against the property.
Active Duty Military Reserves
In 2008 the MN Legislature amended the statute to include property owned by a person who is 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 payments.
How Do I Apply for the Special Assessment Deferment?
Contact the City of Edina Assessor’s Office at:
4801 W 50th Street
Edina, MN 55424
Applications for deferral of a special assessment must be approved by the City of Edina Assessor’s Office before November 15 the year the project levies.
When Will the Deferral End?
The deferral will automatically terminate if:
- The owner dies and the spouse is not otherwise eligible for the deferral, or
- the parcel or any part thereof is sold, transferred, or subdivided, or
- the parcel loses it's homestead status, or
- the City determines the owner or the owner's spouse no longer qualifies, or
- the owner terminates the deferral.
Upon termination of the deferral, the deferred special assessments are due and payable had there been no deferral, together with all compound interest.
What Can I Do If My Application is Denied?
The City Assessor reviews the applications for consistency with and conformance to the standards and guidelines prescribed in the ordinance and will either grant or deny the application. If your application is denied, you may appeal to the City Council.
Senior Citizen Property Tax Deferrals
Call the Hennepin County Taxpayer Services at 612-348-3011.