Bill > SF2076

This bill modifies the property tax classification for homestead resort properties by increasing the tier limits for market value assessment. Specifically, the bill changes the market value thresholds for how resort properties are taxed: the first tier is increased from $600,000 to $1,500,000, and the second tier is increased from $1,700,000 to $3,000,000. These tiers have different tax classification rates, with tier I taxed at 0.50 percent, tier II at 1.0 percent, and tier III at 1.25 percent. The bill applies to properties that are used for temporary and seasonal residential occupancy for recreational purposes, such as resorts with rental cabins, and which are not used for commercial purposes for more than 250 days in the year preceding assessment. The changes are designed to provide tax relief for resort properties by allowing a larger portion of the property's value to be taxed at lower rates. The bill will become effective for the assessment year 2026, giving property owners and assessors time to prepare for the new classification system.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2076&ssn=0&y=2025