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(on Archives.gov) Passed on May 20, 1862, the Homestead Act accelerated the settlement of the western territory by granting adult heads of families 160 acres of surveyed public land for a minimal filing fee and 5 years of continuous residence on that land.
The house must be a person's primary residence to qualify for a homestead exemption, which exempts people from paying taxes on the first $75,000 of their home's value, according to state law.