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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.
For the owner of a $260,000 house that's a primary residence and protected by state homestead laws, the value for tax purposes would increase only 2.1 percent, and $50,000 in value would be exempt from taxation.