Documenting Exempt and Minimum Tax Deeds

Follow these guidelines when presenting exempt and minimum tax deeds for recording.

Exempt Deed

Deed Tax does not apply if a specific exemption listed in Minnesota Statutes, Chapter 287.22. applies.

You should include a statement on the deed indicating the specific exemption.

Minimum Tax Deed

When the consideration for a conveyance of Minnesota real property is $3,000 or less, the minimum tax of $1.65 is due ($1.70 in Hennepin and Ramsey counties). 

You should include this language, or its equivalent, on the front of the deed: “This deed transfers Minnesota real property in exchange for $3,000 or less of consideration.”

Form DT1 as Alternative Documentation

Form DT1, Deed Tax can be used as an alternative to claiming a deed tax exemption or to indicate only the minimum tax is due. 

This form serves as a certification that the document in question has the tax impact as indicated on the form.