MN HF2930

Amends Minnesota Statutes section 273.13, subdivision 22 to expand Class 1c property classification eligibility to include property abutting state trails administered by the Department of Natural Resources, in addition to property abutting public water.

Class 1c property must be devoted to temporary and seasonal residential occupancy for recreational purposes with commercial use limited to no more than 250 days per year and must include a homestead portion occupied by the owner.

Class 1c property must contain at least three rental units (cabins, condominiums, townhouses, sleeping rooms, or camping sites) and provide recreational activities or services such as boat rentals, snowmobile rentals, marina services, or bait and tackle sales.

The homestead portion of Class 1c property is taxed at Class 1a rates, while the remainder is tiered: first $600,000 at 0.50 percent, next $1,700,000 at 1.0 percent, and amounts exceeding $2,300,000 at 1.25 percent.

Effective for taxes payable in 2013 and thereafter.