MN HF3737

Modifies Minnesota Statutes 2009 Supplement, section 273.13, subdivision 25, to amend classification requirements for class 4c residential property used for temporary and seasonal recreational occupancy.

Establishes that class 4c property must contain three or more rental units and meet specific criteria, including at least 40 percent of annual gross lodging receipts from business conducted during 90 consecutive days, with either 60 percent of paid bookings for two or more consecutive nights or 20 percent from equipment rentals and recreational services.

Allows properties with 20 or fewer rental units in townships or cities with populations of 2,500 or less outside the metropolitan area to qualify for class 4c if located on a state trail administered by the Department of Natural Resources and used for temporary residential occupancy no more than 250 days per year.

Sets class 4c property tax rate at 1.5 percent of market value, with exceptions including 1.25 percent for seasonal recreational property not used for commercial purposes, one percent for commercial-use seasonal property and marinas on the first $500,000 of value, and 1.25 percent for remaining value.

Effective for taxes levied in 2010, payable in 2011 and thereafter.