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SF2076 (Legislative Session 94 (2025-2026))

Homestead resort properties tier limits modification

Related bill: HF1829

AI Generated Summary

This bill, Minnesota Senate File No. 2076, proposes amendments to Minnesota Statutes 2024, Section 273.13, Subdivision 22, which governs property tax classifications, specifically modifying tier limits for homestead resort properties (Class 1c).

Key Provisions of the Bill:

  • Adjustments to Tier Limits for Class 1c Property:
    • The first tier market value eligible for a 0.50% classification rate is increased from $600,000 to $1,500,000.
    • The second tier market value eligible for a 1.0% classification rate is increased from $1,700,000 to $3,000,000.
    • Any market value above the second tier remains classified under tier III at a 1.25% classification rate.

Context and Impact:

  • Class 1c properties include seasonal resort properties used for both commercial rental purposes (not exceeding 250 days per year) and personal homestead use by the owner.
  • The expanded tier limits lower the taxable rate on a larger portion of homestead resort properties, potentially reducing property taxes for owners of qualifying properties.
  • The bill does not alter eligibility criteria for Class 1c properties, which must still offer recreational activities (e.g., rental of ice fishing houses, boats, snowmobiles, etc.) and be situated on public water or adjacent to a state trail.

Conclusion:

This bill provides tax relief to owners of homestead resort properties by expanding the lower-taxed tiers, which may incentivize investment in seasonal resorts while supporting tourism-based businesses in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025HouseFloorActionReferred toTaxes
March 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes revisions to classification rates for different market value tiers."
      ],
      "removed": [
        "Previous tier limits for market value."
      ],
      "summary": "The bill modifies tier limits for homestead resort properties under section 273.13 subdivision 22.",
      "modified": [
        "Adjustments in classification from Class 1a, 1b, 1c, and 1d are described."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 22"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section defines the term 'blind' for taxation purposes.",
      "modified": [
        ""
      ]
    },
    "citation": "256D.35",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The section is referenced for property that abuts public water in relation to Class 1c property.",
      "modified": [
        ""
      ]
    },
    "citation": "103G.005",
    "subdivision": "subdivision 15"
  }
]

Sponsors