What is a Special Assessment Deferral?
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.
Which Special Assessments may be eligible for deferral?
• Saint Paul Streets Program (paving and lighting) projects
• Sanitary Sewer Repair (from property line to structure)
• Lead Water Service Replacement (from property line to structure)
• Mill & Overlay projects
• Removal of diseased/dangerous trees
Who Authorizes the Deferral of Special Assessments?
Minnesota Statues, Sections 435.193 through 435.195 authorizes cities to defer the payments of special assessments.
How Do I Qualify for the Special Assessment Deferral?
All of the following requirements must be met:
- 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, and
- The property for which deferment is requested must be classified and taxed as homestead property by the Ramsey County 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 1% of the applicant’s total household income as defined by Minnesota Statues, Chapter 290A.
The City needs to annually verify that circumstances continue to meet the hardship definition. You will be asked to submit a copy of your most recent federal tax return each year.
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 a special assessment deferral?
Contact the Office of Financial Services - Assessments at 651-266-8858.
Applications for deferral of a special assessment must be approved by the City of Saint Paul Assessment Office before November 15th to prevent certification to property taxes.
Deferment of Special Assessment
What can I do if my application is denied?
Real Estate/Assessments 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 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 as if there had been no deferral, together with all compound interest.