Bill Text: MN HF22 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property tax 4c classification requirements modified.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-03 - Author added Poppe [HF22 Detail]
Download: Minnesota-2011-HF22-Introduced.html
1.2relating to taxation; property; modifying 4c classification requirements;
1.3amending Minnesota Statutes 2010, section 273.13, subdivision 25.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:
1.6 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
1.7units and used or held for use by the owner or by the tenants or lessees of the owner
1.8as a residence for rental periods of 30 days or more, excluding property qualifying for
1.9class 4d. Class 4a also includes hospitals licensed under sections144.50 to
144.56 , other
1.10than hospitals exempt under section272.02 , and contiguous property used for hospital
1.11purposes, without regard to whether the property has been platted or subdivided. The
1.12market value of class 4a property has a class rate of 1.25 percent.
1.13 (b) Class 4b includes:
1.14 (1) residential real estate containing less than four units that does not qualify as class
1.154bb, other than seasonal residential recreational property;
1.16 (2) manufactured homes not classified under any other provision;
1.17 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
1.18farm classified under subdivision 23, paragraph (b), containing two or three units; and
1.19 (4) unimproved property that is classified residential as determined under subdivision
1.2033.
1.21 The market value of class 4b property has a class rate of 1.25 percent.
1.22 (c) Class 4bb includes:
1.23 (1) nonhomestead residential real estate containing one unit, other than seasonal
1.24residential recreational property; and
2.1 (2) a single family dwelling, garage, and surrounding one acre of property on a
2.2nonhomestead farm classified under subdivision 23, paragraph (b).
2.3 Class 4bb property has the same class rates as class 1a property under subdivision 22.
2.4 Property that has been classified as seasonal residential recreational property at
2.5any time during which it has been owned by the current owner or spouse of the current
2.6owner does not qualify for class 4bb.
2.7 (d) Class 4c property includes:
2.8 (1) except as provided in subdivision 22, paragraph (c), real and personal property
2.9devoted to temporary and seasonal residential occupancy for recreation purposes,
2.10including real and personal property devoted to temporary and seasonal residential
2.11occupancy for recreation purposes and not devoted to commercial purposes for more
2.12than 250 days in the year preceding the year of assessment. For purposes of this clause,
2.13property is devoted to a commercial purpose on a specific day if any portion of the
2.14property is used for residential occupancy, and a fee is charged for residential occupancy.
2.15Class 4c property under this clause must contain three or more rental units. A "rental unit"
2.16is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
2.17equipped with water and electrical hookups for recreational vehicles. Class 4c property
2.18under this clause must provide recreational activities such as renting ice fishing houses,
2.19boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
2.20services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
2.21offered for rent by a property that otherwise qualifies for class 4c under this clause is also
2.22class 4c under this clause regardless of the term of the rental agreement, as long as the
2.23use of the camping pad does not exceed 250 days. In order for a property to be classified
2.24as class 4c, seasonal residential recreational for commercial purposes under this clause,
2.25(i) at least 40 percent of the annual gross lodging receipts related to the property must
2.26be from business conducted during 90 consecutive days and either(i) (A) at least 60
2.27percent of all paid bookings by lodging guests during the year must be for periods of at
2.28least two consecutive nights; or(ii) (B) at least 20 percent of the annual gross receipts
2.29must be from charges for rental of fish houses, boats and motors, snowmobiles, downhill
2.30or cross-country ski equipment, or charges for marina services, launch services, and
2.31guide services, or the sale of bait and fishing tackle.; or (ii) the property contains 20 or
2.32fewer rental units, is devoted to temporary residential occupancy for no more than 250
2.33days in a year, is located in a township or a city with a population of 2,500 or less, is
2.34located outside the metropolitan area as defined under section 473.121, subdivision 2, and
2.35contains a portion of a state trail administered by the Department of Natural Resources.
2.36For purposes of this determination, a paid booking of five or more nights shall be counted
3.1as two bookings. Class 4c property classified under this clause also includes commercial
3.2use real property used exclusively for recreational purposes in conjunction with other
3.3class 4c property classified under this clause and devoted to temporary and seasonal
3.4residential occupancy for recreational purposes, up to a total of two acres, provided the
3.5property is not devoted to commercial recreational use for more than 250 days in the year
3.6preceding the year of assessment and is located within two miles of the class 4c property
3.7with which it is used. Owners of real and personal property devoted to temporary and
3.8seasonal residential occupancy for recreation purposes and all or a portion of which was
3.9devoted to commercial purposes for not more than 250 days in the year preceding the
3.10year of assessment desiring classification as class 4c, must submit a declaration to the
3.11assessor designating the cabins or units occupied for 250 days or less in the year preceding
3.12the year of assessment by January 15 of the assessment year. Those cabins or units and
3.13a proportionate share of the land on which they are located must be designated class
3.144c under this clause as otherwise provided. The remainder of the cabins or units and a
3.15proportionate share of the land on which they are located will be designated as class 3a.
3.16The owner of property desiring designation as class 4c property under this clause must
3.17provide guest registers or other records demonstrating that the units for which class 4c
3.18designation is sought were not occupied for more than 250 days in the year preceding the
3.19assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
3.20(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
3.21operated on a commercial basis not directly related to temporary and seasonal residential
3.22occupancy for recreation purposes does not qualify for class 4c;
3.23 (2) qualified property used as a golf course if:
3.24 (i) it is open to the public on a daily fee basis. It may charge membership fees or
3.25dues, but a membership fee may not be required in order to use the property for golfing,
3.26and its green fees for golfing must be comparable to green fees typically charged by
3.27municipal courses; and
3.28 (ii) it meets the requirements of section273.112, subdivision 3 , paragraph (d).
3.29 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
3.30with the golf course is classified as class 3a property;
3.31 (3) real property up to a maximum of three acres of land owned and used by a
3.32nonprofit community service oriented organization and not used for residential purposes
3.33on either a temporary or permanent basis, provided that:
3.34 (i) the property is not used for a revenue-producing activity for more than six days
3.35in the calendar year preceding the year of assessment; or
4.1 (ii) the organization makes annual charitable contributions and donations at least
4.2equal to the property's previous year's property taxes and the property is allowed to be
4.3used for public and community meetings or events for no charge, as appropriate to the
4.4size of the facility.
4.5 For purposes of this clause,
4.6 (A) "charitable contributions and donations" has the same meaning as lawful
4.7gambling purposes under section349.12, subdivision 25 , excluding those purposes
4.8relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
4.9 (B) "property taxes" excludes the state general tax;
4.10 (C) a "nonprofit community service oriented organization" means any corporation,
4.11society, association, foundation, or institution organized and operated exclusively for
4.12charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
4.13federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
4.14Revenue Code; and
4.15 (D) "revenue-producing activities" shall include but not be limited to property or that
4.16portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
4.17liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
4.18alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
4.19insurance business, or office or other space leased or rented to a lessee who conducts a
4.20for-profit enterprise on the premises.
4.21Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
4.22of the property for social events open exclusively to members and their guests for periods
4.23of less than 24 hours, when an admission is not charged nor any revenues are received by
4.24the organization shall not be considered a revenue-producing activity.
4.25 The organization shall maintain records of its charitable contributions and donations
4.26and of public meetings and events held on the property and make them available upon
4.27request any time to the assessor to ensure eligibility. An organization meeting the
4.28requirement under item (ii) must file an application by May 1 with the assessor for
4.29eligibility for the current year's assessment. The commissioner shall prescribe a uniform
4.30application form and instructions;
4.31 (4) postsecondary student housing of not more than one acre of land that is owned by
4.32a nonprofit corporation organized under chapter 317A and is used exclusively by a student
4.33cooperative, sorority, or fraternity for on-campus housing or housing located within two
4.34miles of the border of a college campus;
4.35 (5) (i) manufactured home parks as defined in section327.14, subdivision 3 ,
4.36excluding manufactured home parks described in section273.124, subdivision 3a , and (ii)
5.1manufactured home parks as defined in section327.14, subdivision 3 , that are described in
5.2section273.124, subdivision 3a ;
5.3 (6) real property that is actively and exclusively devoted to indoor fitness, health,
5.4social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
5.5and is located within the metropolitan area as defined in section473.121, subdivision 2 ;
5.6 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
5.7under section272.01, subdivision 2 , and the land on which it is located, provided that:
5.8 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
5.9Airports Commission, or group thereof; and
5.10 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
5.11leased premise, prohibits commercial activity performed at the hangar.
5.12 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
5.13be filed by the new owner with the assessor of the county where the property is located
5.14within 60 days of the sale;
5.15 (8) a privately owned noncommercial aircraft storage hangar not exempt under
5.16section272.01, subdivision 2 , and the land on which it is located, provided that:
5.17 (i) the land abuts a public airport; and
5.18 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
5.19agreement restricting the use of the premises, prohibiting commercial use or activity
5.20performed at the hangar; and
5.21 (9) residential real estate, a portion of which is used by the owner for homestead
5.22purposes, and that is also a place of lodging, if all of the following criteria are met:
5.23 (i) rooms are provided for rent to transient guests that generally stay for periods
5.24of 14 or fewer days;
5.25 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
5.26in the basic room rate;
5.27 (iii) meals are not provided to the general public except for special events on fewer
5.28than seven days in the calendar year preceding the year of the assessment; and
5.29 (iv) the owner is the operator of the property.
5.30The market value subject to the 4c classification under this clause is limited to five rental
5.31units. Any rental units on the property in excess of five, must be valued and assessed as
5.32class 3a. The portion of the property used for purposes of a homestead by the owner must
5.33be classified as class 1a property under subdivision 22;
5.34 (10) real property up to a maximum of three acres and operated as a restaurant
5.35as defined under section157.15, subdivision 12 , provided it: (A) is located on a lake
5.36as defined under section103G.005, subdivision 15 , paragraph (a), clause (3); and (B)
6.1is either devoted to commercial purposes for not more than 250 consecutive days, or
6.2receives at least 60 percent of its annual gross receipts from business conducted during
6.3four consecutive months. Gross receipts from the sale of alcoholic beverages must be
6.4included in determining the property's qualification under subitem (B). The property's
6.5primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
6.6sales located on the premises must be excluded. Owners of real property desiring 4c
6.7classification under this clause must submit an annual declaration to the assessor by
6.8February 1 of the current assessment year, based on the property's relevant information for
6.9the preceding assessment year; and
6.10(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
6.11as a marina, as defined in section86A.20, subdivision 5 , which is made accessible to
6.12the public and devoted to recreational use for marina services. The marina owner must
6.13annually provide evidence to the assessor that it provides services, including lake or river
6.14access to the public by means of an access ramp or other facility that is either located on
6.15the property of the marina or at a publicly owned site that abuts the property of the marina.
6.16No more than 800 feet of lakeshore may be included in this classification. Buildings used
6.17in conjunction with a marina for marina services, including but not limited to buildings
6.18used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
6.19tackle, are classified as class 3a property.
6.20 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
6.21parcel of seasonal residential recreational property not used for commercial purposes
6.22has the same class rates as class 4bb property, (ii) manufactured home parks assessed
6.23under clause (5), item (i), have the same class rate as class 4b property, and the market
6.24value of manufactured home parks assessed under clause (5), item (ii), has the same class
6.25rate as class 4d property if more than 50 percent of the lots in the park are occupied by
6.26shareholders in the cooperative corporation or association and a class rate of one percent if
6.2750 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
6.28recreational property and marina recreational land as described in clause (11), has a
6.29class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
6.30remaining market value, (iv) the market value of property described in clause (4) has a
6.31class rate of one percent, (v) the market value of property described in clauses (2), (6), and
6.32(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
6.33in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
6.34 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
6.35by the Housing Finance Agency under section273.128, subdivision 3 . If only a portion
6.36of the units in the building qualify as low-income rental housing units as certified under
7.1section273.128, subdivision 3 , only the proportion of qualifying units to the total number
7.2of units in the building qualify for class 4d. The remaining portion of the building shall be
7.3classified by the assessor based upon its use. Class 4d also includes the same proportion of
7.4land as the qualifying low-income rental housing units are to the total units in the building.
7.5For all properties qualifying as class 4d, the market value determined by the assessor must
7.6be based on the normal approach to value using normal unrestricted rents.
7.7 Class 4d property has a class rate of 0.75 percent.
7.8EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
7.9thereafter.
1.3amending Minnesota Statutes 2010, section 273.13, subdivision 25.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:
1.6 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
1.7units and used or held for use by the owner or by the tenants or lessees of the owner
1.8as a residence for rental periods of 30 days or more, excluding property qualifying for
1.9class 4d. Class 4a also includes hospitals licensed under sections
1.10than hospitals exempt under section
1.11purposes, without regard to whether the property has been platted or subdivided. The
1.12market value of class 4a property has a class rate of 1.25 percent.
1.13 (b) Class 4b includes:
1.14 (1) residential real estate containing less than four units that does not qualify as class
1.154bb, other than seasonal residential recreational property;
1.16 (2) manufactured homes not classified under any other provision;
1.17 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
1.18farm classified under subdivision 23, paragraph (b), containing two or three units; and
1.19 (4) unimproved property that is classified residential as determined under subdivision
1.2033.
1.21 The market value of class 4b property has a class rate of 1.25 percent.
1.22 (c) Class 4bb includes:
1.23 (1) nonhomestead residential real estate containing one unit, other than seasonal
1.24residential recreational property; and
2.1 (2) a single family dwelling, garage, and surrounding one acre of property on a
2.2nonhomestead farm classified under subdivision 23, paragraph (b).
2.3 Class 4bb property has the same class rates as class 1a property under subdivision 22.
2.4 Property that has been classified as seasonal residential recreational property at
2.5any time during which it has been owned by the current owner or spouse of the current
2.6owner does not qualify for class 4bb.
2.7 (d) Class 4c property includes:
2.8 (1) except as provided in subdivision 22, paragraph (c), real and personal property
2.9devoted to temporary and seasonal residential occupancy for recreation purposes,
2.10including real and personal property devoted to temporary and seasonal residential
2.11occupancy for recreation purposes and not devoted to commercial purposes for more
2.12than 250 days in the year preceding the year of assessment. For purposes of this clause,
2.13property is devoted to a commercial purpose on a specific day if any portion of the
2.14property is used for residential occupancy, and a fee is charged for residential occupancy.
2.15Class 4c property under this clause must contain three or more rental units. A "rental unit"
2.16is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
2.17equipped with water and electrical hookups for recreational vehicles. Class 4c property
2.18under this clause must provide recreational activities such as renting ice fishing houses,
2.19boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
2.20services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
2.21offered for rent by a property that otherwise qualifies for class 4c under this clause is also
2.22class 4c under this clause regardless of the term of the rental agreement, as long as the
2.23use of the camping pad does not exceed 250 days. In order for a property to be classified
2.24as class 4c, seasonal residential recreational for commercial purposes under this clause,
2.25(i) at least 40 percent of the annual gross lodging receipts related to the property must
2.26be from business conducted during 90 consecutive days and either
2.27percent of all paid bookings by lodging guests during the year must be for periods of at
2.28least two consecutive nights; or
2.29must be from charges for rental of fish houses, boats and motors, snowmobiles, downhill
2.30or cross-country ski equipment, or charges for marina services, launch services, and
2.31guide services, or the sale of bait and fishing tackle
2.32fewer rental units, is devoted to temporary residential occupancy for no more than 250
2.33days in a year, is located in a township or a city with a population of 2,500 or less, is
2.34located outside the metropolitan area as defined under section 473.121, subdivision 2, and
2.35contains a portion of a state trail administered by the Department of Natural Resources.
2.36For purposes of this determination, a paid booking of five or more nights shall be counted
3.1as two bookings. Class 4c property classified under this clause also includes commercial
3.2use real property used exclusively for recreational purposes in conjunction with other
3.3class 4c property classified under this clause and devoted to temporary and seasonal
3.4residential occupancy for recreational purposes, up to a total of two acres, provided the
3.5property is not devoted to commercial recreational use for more than 250 days in the year
3.6preceding the year of assessment and is located within two miles of the class 4c property
3.7with which it is used. Owners of real and personal property devoted to temporary and
3.8seasonal residential occupancy for recreation purposes and all or a portion of which was
3.9devoted to commercial purposes for not more than 250 days in the year preceding the
3.10year of assessment desiring classification as class 4c, must submit a declaration to the
3.11assessor designating the cabins or units occupied for 250 days or less in the year preceding
3.12the year of assessment by January 15 of the assessment year. Those cabins or units and
3.13a proportionate share of the land on which they are located must be designated class
3.144c under this clause as otherwise provided. The remainder of the cabins or units and a
3.15proportionate share of the land on which they are located will be designated as class 3a.
3.16The owner of property desiring designation as class 4c property under this clause must
3.17provide guest registers or other records demonstrating that the units for which class 4c
3.18designation is sought were not occupied for more than 250 days in the year preceding the
3.19assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
3.20(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
3.21operated on a commercial basis not directly related to temporary and seasonal residential
3.22occupancy for recreation purposes does not qualify for class 4c;
3.23 (2) qualified property used as a golf course if:
3.24 (i) it is open to the public on a daily fee basis. It may charge membership fees or
3.25dues, but a membership fee may not be required in order to use the property for golfing,
3.26and its green fees for golfing must be comparable to green fees typically charged by
3.27municipal courses; and
3.28 (ii) it meets the requirements of section
3.29 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
3.30with the golf course is classified as class 3a property;
3.31 (3) real property up to a maximum of three acres of land owned and used by a
3.32nonprofit community service oriented organization and not used for residential purposes
3.33on either a temporary or permanent basis, provided that:
3.34 (i) the property is not used for a revenue-producing activity for more than six days
3.35in the calendar year preceding the year of assessment; or
4.1 (ii) the organization makes annual charitable contributions and donations at least
4.2equal to the property's previous year's property taxes and the property is allowed to be
4.3used for public and community meetings or events for no charge, as appropriate to the
4.4size of the facility.
4.5 For purposes of this clause,
4.6 (A) "charitable contributions and donations" has the same meaning as lawful
4.7gambling purposes under section
4.8relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
4.9 (B) "property taxes" excludes the state general tax;
4.10 (C) a "nonprofit community service oriented organization" means any corporation,
4.11society, association, foundation, or institution organized and operated exclusively for
4.12charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
4.13federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
4.14Revenue Code; and
4.15 (D) "revenue-producing activities" shall include but not be limited to property or that
4.16portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
4.17liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
4.18alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
4.19insurance business, or office or other space leased or rented to a lessee who conducts a
4.20for-profit enterprise on the premises.
4.21Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
4.22of the property for social events open exclusively to members and their guests for periods
4.23of less than 24 hours, when an admission is not charged nor any revenues are received by
4.24the organization shall not be considered a revenue-producing activity.
4.25 The organization shall maintain records of its charitable contributions and donations
4.26and of public meetings and events held on the property and make them available upon
4.27request any time to the assessor to ensure eligibility. An organization meeting the
4.28requirement under item (ii) must file an application by May 1 with the assessor for
4.29eligibility for the current year's assessment. The commissioner shall prescribe a uniform
4.30application form and instructions;
4.31 (4) postsecondary student housing of not more than one acre of land that is owned by
4.32a nonprofit corporation organized under chapter 317A and is used exclusively by a student
4.33cooperative, sorority, or fraternity for on-campus housing or housing located within two
4.34miles of the border of a college campus;
4.35 (5) (i) manufactured home parks as defined in section
4.36excluding manufactured home parks described in section
5.1manufactured home parks as defined in section
5.2section
5.3 (6) real property that is actively and exclusively devoted to indoor fitness, health,
5.4social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
5.5and is located within the metropolitan area as defined in section
5.6 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
5.7under section
5.8 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
5.9Airports Commission, or group thereof; and
5.10 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
5.11leased premise, prohibits commercial activity performed at the hangar.
5.12 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
5.13be filed by the new owner with the assessor of the county where the property is located
5.14within 60 days of the sale;
5.15 (8) a privately owned noncommercial aircraft storage hangar not exempt under
5.16section
5.17 (i) the land abuts a public airport; and
5.18 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
5.19agreement restricting the use of the premises, prohibiting commercial use or activity
5.20performed at the hangar; and
5.21 (9) residential real estate, a portion of which is used by the owner for homestead
5.22purposes, and that is also a place of lodging, if all of the following criteria are met:
5.23 (i) rooms are provided for rent to transient guests that generally stay for periods
5.24of 14 or fewer days;
5.25 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
5.26in the basic room rate;
5.27 (iii) meals are not provided to the general public except for special events on fewer
5.28than seven days in the calendar year preceding the year of the assessment; and
5.29 (iv) the owner is the operator of the property.
5.30The market value subject to the 4c classification under this clause is limited to five rental
5.31units. Any rental units on the property in excess of five, must be valued and assessed as
5.32class 3a. The portion of the property used for purposes of a homestead by the owner must
5.33be classified as class 1a property under subdivision 22;
5.34 (10) real property up to a maximum of three acres and operated as a restaurant
5.35as defined under section
5.36as defined under section
6.1is either devoted to commercial purposes for not more than 250 consecutive days, or
6.2receives at least 60 percent of its annual gross receipts from business conducted during
6.3four consecutive months. Gross receipts from the sale of alcoholic beverages must be
6.4included in determining the property's qualification under subitem (B). The property's
6.5primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
6.6sales located on the premises must be excluded. Owners of real property desiring 4c
6.7classification under this clause must submit an annual declaration to the assessor by
6.8February 1 of the current assessment year, based on the property's relevant information for
6.9the preceding assessment year; and
6.10(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
6.11as a marina, as defined in section
6.12the public and devoted to recreational use for marina services. The marina owner must
6.13annually provide evidence to the assessor that it provides services, including lake or river
6.14access to the public by means of an access ramp or other facility that is either located on
6.15the property of the marina or at a publicly owned site that abuts the property of the marina.
6.16No more than 800 feet of lakeshore may be included in this classification. Buildings used
6.17in conjunction with a marina for marina services, including but not limited to buildings
6.18used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
6.19tackle, are classified as class 3a property.
6.20 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
6.21parcel of seasonal residential recreational property not used for commercial purposes
6.22has the same class rates as class 4bb property, (ii) manufactured home parks assessed
6.23under clause (5), item (i), have the same class rate as class 4b property, and the market
6.24value of manufactured home parks assessed under clause (5), item (ii), has the same class
6.25rate as class 4d property if more than 50 percent of the lots in the park are occupied by
6.26shareholders in the cooperative corporation or association and a class rate of one percent if
6.2750 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
6.28recreational property and marina recreational land as described in clause (11), has a
6.29class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
6.30remaining market value, (iv) the market value of property described in clause (4) has a
6.31class rate of one percent, (v) the market value of property described in clauses (2), (6), and
6.32(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
6.33in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
6.34 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
6.35by the Housing Finance Agency under section
6.36of the units in the building qualify as low-income rental housing units as certified under
7.1section
7.2of units in the building qualify for class 4d. The remaining portion of the building shall be
7.3classified by the assessor based upon its use. Class 4d also includes the same proportion of
7.4land as the qualifying low-income rental housing units are to the total units in the building.
7.5For all properties qualifying as class 4d, the market value determined by the assessor must
7.6be based on the normal approach to value using normal unrestricted rents.
7.7 Class 4d property has a class rate of 0.75 percent.
7.8EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
7.9thereafter.
