Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2687 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to housing; restricting ownership of single-family homes for corporate
3	3	1.3 entities; providing for increased deed tax rates on conveyances of single-family
4	4	1.4 homes to corporate owners; dedicating the state portion of revenues from the
5	5	1.5 increased deed tax rates for the workforce and affordable homeownership program;
6	6	1.6 creating a statewide landlord database; amending Minnesota Statutes 2024, sections
7	7	1.7 287.21, subdivision 1; 287.29, subdivision 1; proposing coding for new law in
8	8	1.8 Minnesota Statutes, chapter 462A; proposing coding for new law as Minnesota
9	9	1.9 Statutes, chapter 80H.
10	10	1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
11	11	1.11 Section 1. [80H.01] SINGLE-FAMILY HOME OWNERSHIP; CORPORATE
12	12	1.12RESTRICTIONS.
13	13	1.13 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
14	14	1.14the meanings given.
15	15	1.15 (b) "Corporate owner" includes any partnership, corporation, or real estate investment
16	16	1.16trust that manages funds pooled from investors and is a fiduciary with respect to those
17	17	1.17investors.
18	18	1.18 (c) "Homestead" is a property classified as class 1a under section 273.13, subdivision
19	19	1.1922.
20	20	1.20 (d) "Single-family home" means a residential property consisting of one to four dwelling
21	21	1.21units.
22	22	1.22 Subd. 2.Single-family homes; corporate ownership restrictions.A corporate owner
23	23	1.23is prohibited from having a direct or indirect ownership interest in 50 or more single-family
24	24	1.24homes.
25	25	1Section 1.
26	26	REVISOR MS/NS 25-0486503/17/25
27	27	State of Minnesota
28	28	This Document can be made available
29	29	in alternative formats upon request
30	30	HOUSE OF REPRESENTATIVES
31	31	H. F. No. 2687
32	32	NINETY-FOURTH SESSION
33	33	Authored by Agbaje, Engen and Gomez03/24/2025
34	34	The bill was read for the first time and referred to the Committee on Housing Finance and Policy 2.1 Subd. 3.Exceptions.A corporate owner does not include any of the following:
35	35	2.2 (1) a local, state, or federal unit of government, including a state or federal agency;
36	36	2.3 (2) a land trust as defined in section 462A.31;
37	37	2.4 (3) a nonprofit organized under chapter 317A that is creating, rehabilitating, or providing
38	38	2.5affordable housing to low- and moderate-income renters or home buyers;
39	39	2.6 (4) an owner of a home that is classified as homestead property for tax purposes;
40	40	2.7 (5) a corporation primarily engaged in housing development through the construction
41	41	2.8and rehabilitation of single-family homes; or
42	42	2.9 (6) a mortgage note holder that owns the single-family homes through foreclosure.
43	43	2.10 Sec. 2. [80H.02] INVESTIGATION AND ENFORCEMENT .
44	44	2.11 If the commissioner of commerce determines that a person has engaged, is engaged, or
45	45	2.12is about to engage in an act, practice, sale, transfer, or purchase constituting a violation of
46	46	2.13this chapter or a rule or order issued under this chapter the commissioner of commerce has
47	47	2.14all the authority provided under section 45.027 to ensure compliance with this chapter. In
48	48	2.15addition to the enforcement remedies in section 45.027, if the commissioner of commerce
49	49	2.16determines there is a continuing violation 12 months after a cease and desist letter has been
50	50	2.17provided to a corporate owner, the commissioner may impose a penalty of $25,000 for each
51	51	2.18single-family home owned in excess of 50 in violation of section 80H.01. The commissioner
52	52	2.19may assess this fee annually until the corporate owner is in compliance with section 80H.01.
53	53	2.20 Sec. 3. Minnesota Statutes 2024, section 287.21, subdivision 1, is amended to read:
54	54	2.21 Subdivision 1.Determination of tax.(a) A tax is imposed on each deed or instrument
55	55	2.22by which any real property in this state is granted, assigned, transferred, or otherwise
56	56	2.23conveyed. The tax applies against the net consideration. For purposes of the tax, the
57	57	2.24conversion of a corporation to a limited liability company, a limited liability company to a
58	58	2.25corporation, a partnership to a limited partnership, a limited partnership to another limited
59	59	2.26partnership or other entity, or a similar conversion of one entity to another does not grant,
60	60	2.27assign, transfer, or convey real property.
61	61	2.28 (b) The tax is determined in the following manner: (1) when transfers are made by
62	62	2.29instruments pursuant to (i) consolidations or mergers, or (ii) designated transfers, the tax is
63	63	2.30$1.65; (2) when there is no consideration or when the consideration, exclusive of the value
64	64	2.31of any lien or encumbrance remaining thereon at the time of sale, is $3,000 or less, the tax
65	65	2Sec. 3.
66	66	REVISOR MS/NS 25-0486503/17/25 3.1is $1.65; or (3) except as provided in clause (4), when the consideration, exclusive of the
67	67	3.2value of any lien or encumbrance remaining at the time of sale, exceeds $3,000, the tax is
68	68	3.3.0033 0.0033 of the net consideration; or (4) when the consideration, exclusive of the value
69	69	3.4of any lien or encumbrance remaining at the time of sale, exceeds $3,000 and when the
70	70	3.5deed or instrument being taxed is for a single-family home being granted, assigned,
71	71	3.6transferred, or otherwise conveyed to a corporate owner, the tax is 0.5 of the net
72	72	3.7consideration. For the purposes of clause (4), "corporate owner" and "single-family home"
73	73	3.8have the meanings given in section 80H.01.
74	74	3.9 (c) If, within six months from the date of a designated transfer, an ownership interest in
75	75	3.10the grantee entity is transferred by an initial owner to any person or entity with the result
76	76	3.11that the designated transfer would not have been a designated transfer if made to the grantee
77	77	3.12entity with its subsequent ownership, then a tax is imposed at .0033 of the net consideration
78	78	3.13for the designated transfer. If the subsequent transfer of ownership interests was reasonably
79	79	3.14expected at the time of the designated transfer, the applicable penalty under section 287.31,
80	80	3.15subdivision 1, must be paid. The deed tax imposed under this paragraph is due within 30
81	81	3.16days of the subsequent transfer that caused the tax to be imposed under this paragraph.
82	82	3.17Involuntary transfers of ownership shall not be considered transfers of ownership under this
83	83	3.18paragraph. The commissioner may adopt rules defining the types of transfers to be considered
84	84	3.19involuntary.
85	85	3.20 (d) The tax is due at the time a taxable deed or instrument is presented for recording,
86	86	3.21except as provided in paragraph (c). The commissioner may require the tax to be documented
87	87	3.22in a manner prescribed by the commissioner, and may require that the documentation be
88	88	3.23attached to and recorded as part of the deed or instrument. The county recorder or registrar
89	89	3.24of titles shall accept the attachment for recording as part of the deed or instrument and may
90	90	3.25not require, as a condition of recording a deed or instrument, evidence that a transfer is a
91	91	3.26designated transfer in addition to that required by the commissioner. Such an attachment
92	92	3.27shall not, however, provide actual or constructive notice of the information contained therein
93	93	3.28for purposes of determining any interest in the real property. The commissioner shall
94	94	3.29prescribe the manner in which the tax due under paragraph (c) is to be paid and may require
95	95	3.30grantees of designated transfers to file with the commissioner subsequent statements verifying
96	96	3.31that the tax provided under paragraph (c) does not apply.
97	97	3.32 Sec. 4. Minnesota Statutes 2024, section 287.29, subdivision 1, is amended to read:
98	98	3.33 Subdivision 1.Appointment and payment of tax proceeds.(a) Except as provided in
99	99	3.34paragraph (d), the proceeds of the taxes levied and collected under sections 287.21 to 287.385
100	100	3Sec. 4.
101	101	REVISOR MS/NS 25-0486503/17/25 4.1must be apportioned, 97 percent to the general fund of the state, and three percent to the
102	102	4.2county revenue fund.
103	103	4.3 (b) On or before the 20th day of each month, the county treasurer shall determine and
104	104	4.4pay to the commissioner of revenue for deposit in the state treasury and credit to the general
105	105	4.5fund the state's portion of the receipts for deed tax from the preceding month subject to the
106	106	4.6electronic transfer requirements of section 270C.42. The county treasurer shall provide any
107	107	4.7related reports requested by the commissioner of revenue.
108	108	4.8 (c) Counties must remit the state's portion of the June receipts collected through June
109	109	4.925 and the estimated state's portion of the receipts to be collected during the remainder of
110	110	4.10the month to the commissioner of revenue two business days before June 30 of each year.
111	111	4.11The remaining amount of the June receipts is due on August 20.
112	112	4.12 (d) The proceeds of taxes levied and collected as determined in the manner provided in
113	113	4.13section 287.21, subdivision 1, paragraph (b), clause (4), must be apportioned, 97 percent to
114	114	4.14the housing development fund of the state, and three percent to the county revenue fund.
115	115	4.15Paragraphs (b) and (c) apply to the state portion under this paragraph, except that payments
116	116	4.16to the commissioner of revenue under this paragraph must be credited to the housing
117	117	4.17development fund. Money deposited in the housing development fund under this paragraph
118	118	4.18is appropriated to the commissioner of the Minnesota Housing Finance Agency for the
119	119	4.19workforce and affordable homeownership development program in section 462A.38.
120	120	4.20 Sec. 5. [462A.45] STATEWIDE LANDLORD DATABASE.
121	121	4.21 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
122	122	4.22subdivision have the meanings given.
123	123	4.23 (b) "Landlord" has the meaning given in section 504B.001, subdivision 7.
124	124	4.24 (c) "Residential building" has the meaning given in 504B.001, subdivision 11.
125	125	4.25 (d) "Tenant" means a residential tenant as defined in section 504B.001, subdivision 12.
126	126	4.26 Subd. 2.Database established.The commissioner of commerce shall establish and
127	127	4.27maintain a statewide landlord database that collects and retains the information required in
128	128	4.28this section. The commissioner must make the database available to the public at no cost.
129	129	4.29The commissioner must not charge a fee to a landlord for submitting information to the
130	130	4.30database. The database must be searchable and allow tenants and prospective tenants to
131	131	4.31report rental units or landlords who cannot be found in the database.
132	132	4Sec. 5.
133	133	REVISOR MS/NS 25-0486503/17/25 5.1 Subd. 3.Annual submission required.(a) Before renting a residential building in the
134	134	5.2state or within 60 days of renting a rental unit in the state, a landlord must provide the
135	135	5.3following information to the statewide landlord database:
136	136	5.4 (1) the complete legal names of the owners of the residential building and, if the property
137	137	5.5is owned by a company or group of investors, the complete legal names of each natural
138	138	5.6person who has a direct or indirect ownership interest in the residential building;
139	139	5.7 (2) the business address of each natural person who has an ownership interest in the
140	140	5.8residential building;
141	141	5.9 (3) the name, address, and contact information for the landlord or manager of the
142	142	5.10residential building; and
143	143	5.11 (4) if the residential building has a rental license, the date of issue, expiration date, and
144	144	5.12jurisdiction issuing the license.
145	145	5.13 (b) A landlord must annually update a submission for each rental unit or residential
146	146	5.14building that the landlord is renting by February 1 or, if a unit is vacant, before or during
147	147	5.15the first 60 days that the rental unit is occupied.
148	148	5.16 (c) A landlord who fails to comply with this subdivision is subject to penalties under
149	149	5.17subdivisions 4 and 5.
150	150	5.18 Subd. 4.Tenant remedies; civil action; retaliation.(a) A tenant or prospective tenant
151	151	5.19who is unable to locate a landlord in the statewide landlord database may notify the agency
152	152	5.20that the landlord, residential building, or rental unit could not be found and the tenant or
153	153	5.21prospective tenant must provide their contact information, the residential building or unit
154	154	5.22address, and the contact information for the landlord. The agency must send a letter to the
155	155	5.23landlord with information on the database and a notice that the landlord must provide the
156	156	5.24landlord's annual submission to the database within 60 days of the date the landlord received
157	157	5.25notice of the letter. The agency must send the tenant a copy of the letter. An enforcement
158	158	5.26action under subdivision 5 may not be brought until 61 days after the date the letter was
159	159	5.27sent under this paragraph if the commissioner believes the landlord is in violation of this
160	160	5.28section.
161	161	5.29 (b) A landlord must not increase rent, decrease services, alter an existing lease with the
162	162	5.30tenant, file a complaint against the tenant, seek to recover possession of the premises, or
163	163	5.31commit any other act or failure to act, in whole or in part, in retaliation after a tenant exercises
164	164	5.32a right under this section.
165	165	5Sec. 5.
166	166	REVISOR MS/NS 25-0486503/17/25 6.1 Subd. 5.Enforcement.The commissioner may enforce this section consistent with
167	167	6.2section 45.027.
168	168	6.3 EFFECTIVE DATE.This section is effective January 1, 2026.
169	169	6Sec. 5.
170	170	REVISOR MS/NS 25-0486503/17/25