Minnesota House Bill HF5466

Minnesota 2023-2024 Regular Session

• Introduced: 5/13/24
• Refer: 5/13/24

Caption

Class rates for manufactured home parks modified.

Impact

The proposed changes aim to create a more equitable tax burden for manufactured home parks, encouraging better maintenance and possibly improved living conditions for residents. By offering a lower classification rate of 0.75% for parks with over 50% shareholder occupancy and a 1% rate for those with less, the legislation could significantly reduce the tax liabilities of these parks. This financial relief might lead to increased investment in improvements and amenities, attracting more residents and preserving affordable housing options in the state.

Summary

House File 5466 focuses on modifying property tax rates for manufactured home parks in Minnesota. The bill amends existing tax classifications outlined in Minnesota Statutes, particularly regarding the classification and taxation of manufactured home parks. Specifically, it seeks to establish more favorable tax rates for these parks when a majority of the lots are occupied by shareholders in cooperatives or associations, thereby possibly boosting investment in such properties.

Contention

Discussion around HF5466 raised concerns about its long-term consequences on housing equity and local tax revenues. Some stakeholders worry that while the bill benefits manufactured home parks, it may unfairly shift the tax burden to other property taxpayers in the local community. Moreover, the definition and criteria for classification can lead to disputes and confusion, creating a complex landscape for local assessors tasked with implementing these changes. Critics argue that the bill should include more robust measures to ensure fairness in property tax distribution across different sectors.