Minnesota Seasonal Recreational Property Owners Forum

The phaseout of Limited Market Value is a huge issue for seasonal owners, owners of homesteaded lake shore, and many hunters in greater Minnesota. The phaseout began in 2001, and is graduated, going from a 10% cap in the first year, then 15%, then 20% and so forth, trying to narrow the gap gradually between Limited Market Value and full assessed value. Legislators hoped this would provide a soft landing for tax payers.

But the assessed values of most lakeshore has grown more quickly than the phaseout, so that there is a bigger gap between LMV and assessed value today than there was when the phaseoput began. For these owners, the gradual sunset will not provide a soft landing, but a crash landing.

Just received my proposed tax bill for 2009. Increase of 22%. Called the assessor and he said that a combination of the phase out on limitations on taxable value and the past increases in property values that are carrying over is the cause. Its at the point where our cabin property tax is catching up to our year-round home that decreased by 4%. He also agreed the tax is out of line.

Received tax for “cabin” on Mille Lacs. Basically a double garage with indoor plumbing, no heating system (seasonal) and no bedrooms, closets, etc. Over $2500 a year for a place to use 18 times a year. More than year round home taxes. Doesn’t make sense. Should just bulldoze the place and pay $900 for a lot and camp.