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Resort owners urge lawmakers to raise lakeshore tax tiers to prevent closures and preserve local tourism
Summary
Owners of small, family-run Minnesota resorts told the Senate Tax Committee that lakeshore valuations and static tier thresholds set in statute have pushed many resorts to financial stress or closure; they asked the legislature to raise tier limits for resort valuation to preserve tourism and local economies.
Resort owners and their industry representative told the Senate Tax Committee that statutory lakeshore valuation tiers have not kept pace with market increases and that the mismatch is forcing family resorts to close or sell for private development.
Joel Carlson, who represents Community Minnesota Resorts and a private government affairs firm, said Minnesota once had more than 3,000 resorts and that the number the organization tracks has fallen from about 1,100 to under 600. "We're down to under 600. And that is a significant problem," Carlson said, arguing that resorts supply critical public access to lakes and support local businesses.
Three resort owners gave first‑hand accounts. Mike Schwieters of Boyd Lodge (Cross Lake) said values in his area have doubled since the pandemic in some places and that many resorts now find themselves moved into higher statutory tiers introduced under a 2005 tiered system. Beth Klinsky of Notting Pines Resort (Nevis/Park Rapids area) described her family operation and said the business hosts roughly 135 families each season who spend in nearby shops and grocers. Ann Doherty of Wambolts Cabins (Park Rapids area) said her family revived a long‑dormant resort during the pandemic and now faces sharply higher property tax bills; she and her husband operate the resort seasonally and hire local seasonal workers.
Owners asked the committee to consider adjusting the tier thresholds that determine how much lakeshore value is taxed in each tier. Carlson said the tiers were created by the legislature in 2005 and adjusted once in 2008 and have not been updated to reflect recent lakeshore market gains; he said the statutory tiers are set by the legislature and called for bumping the thresholds so more resort land remains in lower tiers.
Why it matters: resort owners said the resorts are gateways for Minnesotans and tourists to access lakes, and that closures reduce local spending and services in small towns. One owner gave a business example: from 2022 to 2025 their overall property taxes rose roughly 50%, and owners described property tax as the single largest expense in operating a short‑season resort.
Assessors attending the hearing confirmed that the current appraisal method applies highest and best use and that, absent statutory relief, assessors must value land consistent with comparable vacant‑land sales. Committee members noted that changing the tiers would shift tax burden to other taxpayers and that counties and assessors have told the committee they understand such tradeoffs.
Ending: Resort representatives said they will continue to press for statutory change (a tier increase) in upcoming legislation and asked the committee for support; assessors said they would work with the committee to evaluate valuation methods and possible income‑approach options, while cautioning about administrability and statutory constraints.
