Bill Text: MN HF1761 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Seasonal-recreational land exempted from referendum market value; class 1c property requirements and leased seasonal-recreation land modified.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-04-17 - Author added Ward, J.E. [HF1761 Detail]
Download: Minnesota-2013-HF1761-Introduced.html
1.2relating to taxation; property tax; exempting certain properties from referendum
1.3market value; modifying the requirements for class 1c property; modifying
1.4leased seasonal-recreation land;amending Minnesota Statutes 2012, sections
1.5126C.01, subdivision 3; 272.0213; 273.13, subdivision 22.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 126C.01, subdivision 3, is amended to read:
1.8 Subd. 3. Referendum market value. "Referendum market value" means the
1.9market value of all taxable property, excluding property classified as class 1c, 2, 4c(4), or
1.104c(12) under section273.13 . The portion of class 2a property consisting of the house,
1.11garage, and surrounding one acre of land of an agricultural homestead is included in
1.12referendum market value. For the purposes of this subdivision, in the case of class 1a,
1.131b, or 2a property, "market value" means the value prior to the exclusion under section
1.14273.13, subdivision 35
. Any class of property, or any portion of a class of property, that is
1.15included in the definition of referendum market value and that has a class rate of less than
1.16one percent under section273.13 shall have a referendum market value equal to its market
1.17value times its class rate, multiplied by 100.
1.18 Sec. 2. Minnesota Statutes 2012, section 272.0213, is amended to read:
1.19272.0213 LEASED SEASONAL-RECREATIONAL LAND.
1.20 (a)A county board may elect, by resolution, to Qualified lands, as defined in this
1.21section, are exempt from taxation, including an exemption from the tax under section
1.22273.19
, qualified lands. "Qualified lands" for purposes of this section means property that:
1.23 (1) is owned by a county, city, town, or the state; and
2.1 (2) is rented by the entity for noncommercial seasonal-recreationalor,
2.2 noncommercial seasonal-recreational residential use; and, or class 1c commercial
2.3seasonal-recreational residential use.
2.4(3) was rented for the purposes specified in clause (2) and was exempt from taxation
2.5for property taxes payable in 2008.
2.6(b) Lands owned by the federal government and rented for noncommercial
2.7seasonal-recreationalor, noncommercial seasonal-recreational residential, or class 1c
2.8commercial seasonal-recreational residential use are exempt from taxation, including the
2.9tax under section273.19 .
2.10EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
2.11thereafter.
2.12 Sec. 3. Minnesota Statutes 2012, section 273.13, subdivision 22, is amended to read:
2.13 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b)
2.14and (c), real estate which is residential and used for homestead purposes is class 1a. In the
2.15case of a duplex or triplex in which one of the units is used for homestead purposes, the
2.16entire property is deemed to be used for homestead purposes. The market value of class 1a
2.17property must be determined based upon the value of the house, garage, and land.
2.18 The first $500,000 of market value of class 1a property has a net class rate of
2.19one percent of its market value; and the market value of class 1a property that exceeds
2.20$500,000 has a class rate of 1.25 percent of its market value.
2.21 (b) Class 1b property includes homestead real estate or homestead manufactured
2.22homes used for the purposes of a homestead by:
2.23 (1) any person who is blind as defined in section256D.35 , or the blind person and
2.24the blind person's spouse;
2.25 (2) any person who is permanently and totally disabled or by the disabled person and
2.26the disabled person's spouse; or
2.27 (3) the surviving spouse of a permanently and totally disabled veteran homesteading
2.28a property classified under this paragraph for taxes payable in 2008.
2.29 Property is classified and assessed under clause (2) only if the government agency or
2.30income-providing source certifies, upon the request of the homestead occupant, that the
2.31homestead occupant satisfies the disability requirements of this paragraph, and that the
2.32property is not eligible for the valuation exclusion under subdivision 34.
2.33 Property is classified and assessed under paragraph (b) only if the commissioner
2.34of revenue or the county assessor certifies that the homestead occupant satisfies the
2.35requirements of this paragraph.
3.1 Permanently and totally disabled for the purpose of this subdivision means a
3.2condition which is permanent in nature and totally incapacitates the person from working
3.3at an occupation which brings the person an income. The first $50,000 market value of
3.4class 1b property has a net class rate of .45 percent of its market value. The remaining
3.5market value of class 1b property has a class rate using the rates for class 1a or class 2a
3.6property, whichever is appropriate, of similar market value.
3.7 (c) Class 1c property is commercial use real and personal property that abuts public
3.8water as defined in section103G.005, subdivision 15 , or abuts a state trail administered by
3.9the Department of Natural Resources, and is devoted to temporary and seasonal residential
3.10occupancy for recreational purposes but not devoted to commercial purposes for more
3.11than 250 days in the year preceding the year of assessment, and that includes a portion
3.12used as a homestead by the owner, which includes a dwelling occupied as a homestead
3.13by a shareholder of a corporation that owns the resort, a partner in a partnership that
3.14owns the resort, or a member of a limited liability company that owns the resorteven
3.15if, whether the title to the homestead is held by the corporation, partnership, or limited
3.16liability company, or by a shareholder of a corporation who owns the resort, a partner in a
3.17partnership who owns the resort, or a member of a limited liability company who owns
3.18the resort. For purposes of this paragraph, property is devoted to a commercial purpose
3.19on a specific day if any portion of the property, excluding the portion used exclusively
3.20as a homestead, is used for residential occupancy and a fee is charged for residential
3.21occupancy. Class 1c property must contain three or more rental units. A "rental unit" is
3.22defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
3.23equipped with water and electrical hookups for recreational vehicles. Class 1c property
3.24must provide recreational activities such as the rental of ice fishing houses, boats and
3.25motors, snowmobiles, downhill or cross-country ski equipment; provide marina services,
3.26launch services, or guide services; or sell bait and fishing tackle. Any unit in which the
3.27right to use the property is transferred to an individual or entity by deeded interest, or the
3.28sale of shares or stock, no longer qualifies for class 1c even though it may remain available
3.29for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c
3.30is also class 1c, regardless of the term of the rental agreement, as long as the use of the
3.31camping pad does not exceed 250 days. If the same owner owns two separate parcels that
3.32are located in the same township, and one of those properties is classified as a class 1c
3.33property and the other would be eligible to be classified as a class 1c property if it was
3.34used as the homestead of the owner, both properties will be assessed as a single class 1c
3.35property; for purposes of this sentence, properties are deemed to be owned by the same
3.36owner if each of them is owned by a limited liability company, and both limited liability
4.1companies have the same membership. The portion of the property used as a homestead
4.2is class 1a property under paragraph (a). The remainder of the property is classified as
4.3follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is
4.4tier II, and any remaining market value is tier III. The class rates for class 1c are: tier I,
4.50.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and personal
4.6property devoted to temporary and seasonal residential occupancy for recreation purposes
4.7in which all or a portion of the property was devoted to commercial purposes for not more
4.8than 250 days in the year preceding the year of assessment desiring classification as class
4.91c, must submit a declaration to the assessor designating the cabins or units occupied
4.10for 250 days or less in the year preceding the year of assessment by January 15 of the
4.11assessment year. Those cabins or units and a proportionate share of the land on which they
4.12are located must be designated as class 1c as otherwise provided. The remainder of the
4.13cabins or units and a proportionate share of the land on which they are located must be
4.14designated as class 3a commercial. The owner of property desiring designation as class
4.151c property must provide guest registers or other records demonstrating that the units for
4.16which class 1c designation is sought were not occupied for more than 250 days in the
4.17year preceding the assessment if so requested. The portion of a property operated as a
4.18(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
4.19nonresidential facility operated on a commercial basis not directly related to temporary
4.20and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
4.21 (d) Class 1d property includes structures that meet all of the following criteria:
4.22 (1) the structure is located on property that is classified as agricultural property under
4.23section273.13, subdivision 23 ;
4.24 (2) the structure is occupied exclusively by seasonal farm workers during the time
4.25when they work on that farm, and the occupants are not charged rent for the privilege of
4.26occupying the property, provided that use of the structure for storage of farm equipment
4.27and produce does not disqualify the property from classification under this paragraph;
4.28 (3) the structure meets all applicable health and safety requirements for the
4.29appropriate season; and
4.30 (4) the structure is not salable as residential property because it does not comply
4.31with local ordinances relating to location in relation to streets or roads.
4.32 The market value of class 1d property has the same class rates as class 1a property
4.33under paragraph (a).
4.34EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.35thereafter.
1.3market value; modifying the requirements for class 1c property; modifying
1.4leased seasonal-recreation land;amending Minnesota Statutes 2012, sections
1.5126C.01, subdivision 3; 272.0213; 273.13, subdivision 22.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 126C.01, subdivision 3, is amended to read:
1.8 Subd. 3. Referendum market value. "Referendum market value" means the
1.9market value of all taxable property, excluding property classified as class 1c, 2, 4c(4), or
1.104c(12) under section
1.11garage, and surrounding one acre of land of an agricultural homestead is included in
1.12referendum market value. For the purposes of this subdivision, in the case of class 1a,
1.131b, or 2a property, "market value" means the value prior to the exclusion under section
1.15included in the definition of referendum market value and that has a class rate of less than
1.16one percent under section
1.17value times its class rate, multiplied by 100.
1.18 Sec. 2. Minnesota Statutes 2012, section 272.0213, is amended to read:
1.19272.0213 LEASED SEASONAL-RECREATIONAL LAND.
1.20 (a)
1.21section, are exempt from taxation, including an exemption from the tax under section
1.23 (1) is owned by a county, city, town, or the state; and
2.1 (2) is rented by the entity for noncommercial seasonal-recreational
2.2 noncommercial seasonal-recreational residential use
2.3seasonal-recreational residential use.
2.4
2.5
2.6(b) Lands owned by the federal government and rented for noncommercial
2.7seasonal-recreational
2.8commercial seasonal-recreational residential use are exempt from taxation, including the
2.9tax under section
2.10EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
2.11thereafter.
2.12 Sec. 3. Minnesota Statutes 2012, section 273.13, subdivision 22, is amended to read:
2.13 Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b)
2.14and (c), real estate which is residential and used for homestead purposes is class 1a. In the
2.15case of a duplex or triplex in which one of the units is used for homestead purposes, the
2.16entire property is deemed to be used for homestead purposes. The market value of class 1a
2.17property must be determined based upon the value of the house, garage, and land.
2.18 The first $500,000 of market value of class 1a property has a net class rate of
2.19one percent of its market value; and the market value of class 1a property that exceeds
2.20$500,000 has a class rate of 1.25 percent of its market value.
2.21 (b) Class 1b property includes homestead real estate or homestead manufactured
2.22homes used for the purposes of a homestead by:
2.23 (1) any person who is blind as defined in section
2.24the blind person's spouse;
2.25 (2) any person who is permanently and totally disabled or by the disabled person and
2.26the disabled person's spouse; or
2.27 (3) the surviving spouse of a permanently and totally disabled veteran homesteading
2.28a property classified under this paragraph for taxes payable in 2008.
2.29 Property is classified and assessed under clause (2) only if the government agency or
2.30income-providing source certifies, upon the request of the homestead occupant, that the
2.31homestead occupant satisfies the disability requirements of this paragraph, and that the
2.32property is not eligible for the valuation exclusion under subdivision 34.
2.33 Property is classified and assessed under paragraph (b) only if the commissioner
2.34of revenue or the county assessor certifies that the homestead occupant satisfies the
2.35requirements of this paragraph.
3.1 Permanently and totally disabled for the purpose of this subdivision means a
3.2condition which is permanent in nature and totally incapacitates the person from working
3.3at an occupation which brings the person an income. The first $50,000 market value of
3.4class 1b property has a net class rate of .45 percent of its market value. The remaining
3.5market value of class 1b property has a class rate using the rates for class 1a or class 2a
3.6property, whichever is appropriate, of similar market value.
3.7 (c) Class 1c property is commercial use real and personal property that abuts public
3.8water as defined in section
3.9the Department of Natural Resources, and is devoted to temporary and seasonal residential
3.10occupancy for recreational purposes but not devoted to commercial purposes for more
3.11than 250 days in the year preceding the year of assessment, and that includes a portion
3.12used as a homestead by the owner, which includes a dwelling occupied as a homestead
3.13by a shareholder of a corporation that owns the resort, a partner in a partnership that
3.14owns the resort, or a member of a limited liability company that owns the resort
3.15
3.16liability company, or by a shareholder of a corporation who owns the resort, a partner in a
3.17partnership who owns the resort, or a member of a limited liability company who owns
3.18the resort. For purposes of this paragraph, property is devoted to a commercial purpose
3.19on a specific day if any portion of the property, excluding the portion used exclusively
3.20as a homestead, is used for residential occupancy and a fee is charged for residential
3.21occupancy. Class 1c property must contain three or more rental units. A "rental unit" is
3.22defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
3.23equipped with water and electrical hookups for recreational vehicles. Class 1c property
3.24must provide recreational activities such as the rental of ice fishing houses, boats and
3.25motors, snowmobiles, downhill or cross-country ski equipment; provide marina services,
3.26launch services, or guide services; or sell bait and fishing tackle. Any unit in which the
3.27right to use the property is transferred to an individual or entity by deeded interest, or the
3.28sale of shares or stock, no longer qualifies for class 1c even though it may remain available
3.29for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c
3.30is also class 1c, regardless of the term of the rental agreement, as long as the use of the
3.31camping pad does not exceed 250 days. If the same owner owns two separate parcels that
3.32are located in the same township, and one of those properties is classified as a class 1c
3.33property and the other would be eligible to be classified as a class 1c property if it was
3.34used as the homestead of the owner, both properties will be assessed as a single class 1c
3.35property; for purposes of this sentence, properties are deemed to be owned by the same
3.36owner if each of them is owned by a limited liability company, and both limited liability
4.1companies have the same membership. The portion of the property used as a homestead
4.2is class 1a property under paragraph (a). The remainder of the property is classified as
4.3follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is
4.4tier II, and any remaining market value is tier III. The class rates for class 1c are: tier I,
4.50.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and personal
4.6property devoted to temporary and seasonal residential occupancy for recreation purposes
4.7in which all or a portion of the property was devoted to commercial purposes for not more
4.8than 250 days in the year preceding the year of assessment desiring classification as class
4.91c, must submit a declaration to the assessor designating the cabins or units occupied
4.10for 250 days or less in the year preceding the year of assessment by January 15 of the
4.11assessment year. Those cabins or units and a proportionate share of the land on which they
4.12are located must be designated as class 1c as otherwise provided. The remainder of the
4.13cabins or units and a proportionate share of the land on which they are located must be
4.14designated as class 3a commercial. The owner of property desiring designation as class
4.151c property must provide guest registers or other records demonstrating that the units for
4.16which class 1c designation is sought were not occupied for more than 250 days in the
4.17year preceding the assessment if so requested. The portion of a property operated as a
4.18(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
4.19nonresidential facility operated on a commercial basis not directly related to temporary
4.20and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
4.21 (d) Class 1d property includes structures that meet all of the following criteria:
4.22 (1) the structure is located on property that is classified as agricultural property under
4.23section
4.24 (2) the structure is occupied exclusively by seasonal farm workers during the time
4.25when they work on that farm, and the occupants are not charged rent for the privilege of
4.26occupying the property, provided that use of the structure for storage of farm equipment
4.27and produce does not disqualify the property from classification under this paragraph;
4.28 (3) the structure meets all applicable health and safety requirements for the
4.29appropriate season; and
4.30 (4) the structure is not salable as residential property because it does not comply
4.31with local ordinances relating to location in relation to streets or roads.
4.32 The market value of class 1d property has the same class rates as class 1a property
4.33under paragraph (a).
4.34EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.35thereafter.
