Bill > HF1829

This bill modifies property tax classification rates for homestead resort properties (Class 1c), specifically increasing the market value tiers for tax assessment purposes. Currently, the first $600,000 of market value is taxed at 0.50 percent (tier I), the next $1,700,000 is taxed at 1.0 percent (tier II), and any remaining value is taxed at 1.25 percent (tier III). The bill increases these tiers, changing tier I to the first $1,500,000 and tier II to the next $3,000,000, while maintaining the same percentage rates. These changes apply to resorts that are used for temporary and seasonal residential occupancy for recreational purposes, not used for commercial purposes more than 250 days per year, and provide specific recreational activities like renting equipment or offering marina services. The bill specifies that these new tax classification rates will be effective beginning with the 2026 assessment year, giving property owners and local tax authorities time to adjust to the new valuation framework.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1829&ssn=0&y=2025