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SF2076 (Legislative Session 94 (2025-2026))

Homestead resort properties tier limits modification

Related bill: HF1829

AI Generated Summary

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.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies application of benefits for individuals who are blind."
      ],
      "removed": [],
      "summary": "This bill references section 256D.35 to define 'blind' for property classification purposes.",
      "modified": []
    },
    "citation": "256D.35"
  },
  {
    "analysis": {
      "added": [
        "Expands definition to include additional properties abutting public waters."
      ],
      "removed": [],
      "summary": "This bill references section 103G.005, subdivision 15 to define 'public water' for property classification.",
      "modified": []
    },
    "citation": "103G.005, subdivision 15"
  },
  {
    "analysis": {
      "added": [
        "Includes criteria for seasonal farm workers' housing."
      ],
      "removed": [],
      "summary": "This bill amends section 273.13, subdivision 23 with changes related to Class 1d property.",
      "modified": [
        "Specific requirements for classification based on farm use."
      ]
    },
    "citation": "273.13, subdivision 23"
  }
]

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