Senate committee hears owners on bill to raise valuation tiers for 'mom-and-pop' resorts

Summary

The Minnesota Senate Taxes Committee heard testimony supporting Senate File 2076, which raises the taxable-value tier thresholds for Class 1C homestead resort properties. Owners described economic pressures on small resorts; the bill would take effect for assessment year 2026 and was later added into a broader tax bill as an amendment.

Senator Andrew Hauschild introduced Senate File 2076 on March 13, 2025, proposing to raise the three taxable-value tier thresholds that apply to Class 1C homestead resort properties, commonly called "mom-and-pop" resorts, with changes effective beginning with assessment year 2026.

The measure would raise the first tier from $600,000 to $1,500,000; set the second tier for the next $3,000,000 of value (raising the upper bound of tier two to $4,500,000, up from $2,300,000); and make the third tier any value above $4,500,000. The bill leaves the classification rates unchanged at 0.5 percent, 1 percent and 1.25 percent for tiers one through three, and preserves the existing rule that value in the third tier is subject to the state general levy.

Supporters told the committee the change is intended to preserve small, family-run resorts that they say face rising valuations and competition from short-term rentals. Joel Carlson, testifying for the Community of Minnesota Resorts,…

Senate committee hears owners on bill to raise valuation tiers for 'mom-and-pop' resorts

Summary

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