LEGISLATIVE CHANGES THAT AFFECT TAXES PAYABLE IN 2010
Some property owners will see a significant change in the taxes payable on their properties in 2010. Below is an explanation of why these changes were made to your property and what consequence that change had on your 2010 taxes.

1. Why is the classification of my land being called "cabin" when there it is only land and there isn't a cabin on the property? The Department of Revenue recommended that the title "seasonal recreational" be changed to "cabin". The name change has no effect on the values, class rates or taxes paid. It is a name change only.

2. Family-owned or "Ma and Pa" resorts: MN Statute 273.13 Subd. 22 (c) defines Class 1(c) property (Ma and Pa resorts) as "commercial use real and personal property that abuts public water...". Unfortunately some resorts within our county are not on public water and do not qualify for this classification hence these properties will see an increase in their taxes.

3. What is this new "Rural Vacant Land classification?: MN Statute 273.13 Subd. 23 (c) defines Class 2(b) Rural Vacant Land as "...parcels of property, or portions thereof, that are unplatted real estate, rural in character and not used for agricultural purposes...that is not improved with a structure..." It goes on to say "Any parcel of 20 acres or more improved with a structure that is not minor...must be split-classified and ten acres must be assigned to the split parcel containing the structure." For example: a homestead property that contains 20 acres is now split-classed, 10 acres with the buildings are Homestead, 10 acres are Rural Vacant Land. Some homestead properties may see a reduction in their taxes due to this law change others may see an increase due to the loss of taconite credit on the RVL piece.

4. Bare land that was classified as Seasonal Recreational Residential are now classified as Rural Vacant Land: Again, properties that are not improved, unplatted, are rural in character are now to be classified as Rural Vacant Land. These properties may see a reduction in their taxes as the RVL classification is NOT subject to the 1% state general tax SRR property IS.

5. Properties that were classified as "Timber" are now classified as "Rural Vacant Land": In order for a property to qualify under the Class 2(c) Managed Forest Land classification, a property owner must have a current (within 10 years) Forest Management plan registered with the MN Department of Natural Resources and must fill out an application for the assessor prior to May 1 of any year to receive the classification for the following tax year. For example an application had to be returned to the assessor prior to May 1, 2009 to receive the classification for the 2010 taxes.

If you have additional questions or concerns, please contact your county assessor. This e-mail address is being protected from spambots. You need JavaScript enabled to view it