SF2076

This bill (S.F. No. 2076) proposes modifications to the tier limits for homestead resort properties in Minnesota by amending Minnesota Statutes 2024, section 273.13, subdivision 22. The key change in the bill pertains to class 1c property, which includes commercial real estate that is used seasonally for temporary residential occupancy for recreation and meets specific criteria.

Key Changes:

1. Revised Tier Limits for Class 1c (Homestead Resort Properties):

   • The Tier I classification limit increases from $600,000 to $1,500,000 in market value.
   • The Tier II classification limit increases from $1,700,000 to $3,000,000 in market value.
   • Market value exceeding these limits remains in Tier III.

2. Classification Rates for Class 1c Properties:

   • Tier I: 0.50% classification rate.
   • Tier II: 1.0% classification rate.
   • Tier III: 1.25% classification rate.

3. Other Provisions:

   • Owners seeking classification as class 1c must provide documentation proving compliance with the eligibility criteria.
   • Portions of the property used for commercial activities unrelated to temporary and seasonal occupancy (such as restaurants, bars, gift shops, or conference centers) do not qualify for class 1c classification.

Purpose:

The bill aims to adjust property tax classification limits for homestead resort properties, which may provide tax relief for resort owners by increasing the thresholds at which properties fall under lower tax rates.

If passed, these changes would impact how certain resort properties are assessed for property tax purposes in Minnesota.