Minnesota Senate Bill SF1897

Minnesota 2023-2024 Regular Session

• Introduced: 2/20/23
• Refer: 2/20/23

Caption

Homestead resort properties tier property tax tier limits modification

Impact

If enacted, SF1897 could notably lessen the financial burden on owners of seasonal resort properties by revising the assessment rates for these homestead properties. It modifies the tier levels for taxation, meaning the tax liabilities may decrease for many property owners depending on how their properties are used throughout the year. A significant change includes allowing properties used exclusively for temporary and seasonal residential occupancy to qualify for class 1c if they do not exceed a designated number of occupancy days.

Summary

Senate File 1897 proposes modifications to the property tax tier limits specifically for homestead resort properties. The bill amends existing Minnesota statutes to adjust classification rates and definitions associated with resort properties, allowing for a more favorable taxation scheme for properties used for recreational purposes. Under this bill, the classification rates for homestead resort properties are structured into several tiers, with specific exemptions and qualifications set forth for properties designated as class 1c, which pertains to resort properties having recreational uses.

Contention

The discussions surrounding SF1897 highlight concerns among stakeholders regarding the potential implications for local governments' tax revenue, as the modification in classification rates could lead to diminished tax collections from these properties. Opponents of the bill may argue that such tax adjustments benefit affluent property owners at the expense of the broader public, especially local municipalities that rely on property taxes to fund essential services. Proponents, however, assert the need for updated tax structures in response to changing uses of recreational properties.