Minnesota Property Tax Increase Could Have Some Cabin Owners Paying 3X More
Owning a cabin on a lake is a dream for many Minnesota residents. Getting away from the hustle and bustle of home and relaxing at their lake property with family and friends. For some however the new taxes on their properties could put them in sticker shock.
A larger tax bill next year could have some property owners paying 3x as much as they are now. This increase is meant to even the playing field in a crowded rental market. This shift if it goes through will have a ripple effect on not only cabin owners who rent out their property but also to the people who rent them as the extra cost has to go somewhere.
This new bill would only apply to rental properties which in the past have been classified in the lowest tax bracket, but with the popularity of Airbnb and other companies renting out these properties they have started to have somewhat of an unfair advantage over say a hotel or resort type place.
For rental property owners in areas like Lake and Cook Counties they are worried about how much their property taxes could increase. WCCO reports "This past spring, the Department of Revenue sent this memo to Minnesota’s 87 county assessors who have the role of viewing and classifying property based on primary use."
Governor Tim Walz said "he is open to a new proposal and believes tax laws may be outdated, but he won’t lead the charge on the issue." As far as anyone can tell it looks like lawmakers from that area will have to do it themselves.