The bill amends Minnesota Statutes 2024, section 273.13, subdivision 22, to modify the tier limits for homestead resort properties. Specifically, it changes the classification rates for Class 1c properties, which are defined as commercial use real and personal property that abuts public water or a state trail and is used for temporary and seasonal residential occupancy for recreational purposes. The first tier limit for Class 1c properties is increased from $600,000 to $1,500,000, and the second tier limit is raised from $1,700,000 to $3,000,000. The classification rates for Class 1c properties are set at 0.50 percent for tier I, 1.0 percent for tier II, and 1.25 percent for tier III.

Additionally, the bill includes a new effective date stating that these changes will take effect beginning with the assessment year 2026. This adjustment aims to provide a more favorable tax classification for homestead resort properties, potentially benefiting property owners in the tourism and recreational sectors.

Statutes affected:
Introduction: 273.13