Short-term Rental Property Classification
Fifth Special Session 2020, Chapter 3, Article 8, Section 2
Amends Minnesota Statutes 2020, section 273.13, subdivision 25.
This section expands the definition of the 4b(1) classification to include short-term rental property rented for more than 14 days in the preceding year. Short-term rental properties under this provision are defined as non-homestead residential real estate that both:
Rents for periods of less than 30 consecutive days
Contains fewer than four units
Homestead properties are not considered short-term rental properties. The 4b(1) classification has a class rate of 1.25%.
Prior to this change, properties determined to have a primary use as a short-term rental were classified as commercial.
Effective Date: Effective beginning with assessment year 2021, taxes payable in 2022, and thereafter.
Market Value Exclusion on the Homestead of a Veteran with a Disability – Allowing a Surviving
Spouse to Move
Fifth Special Session 2020, Chapter 3, Article 8, Section 3
Amends Minnesota Statutes 2018, section 273.13, subdivision 34.
This section expands the market value exclusion for the homestead of a surviving spouse of a qualifying veteran by allowing the spouse to transfer their benefit to a different property if they move. The property must have an estimated market value less than or equal to the value of the original property at the time of sale of the original property. A surviving spouse is limited to one transfer under this new provision.
To qualify for the continuation of the exclusion on a new property, the surviving spouse must:
Make a new application
Hold legal or beneficial title and permanently reside there
Not have already received the exclusion on more than one property
Not have remarried
Previously, once a surviving spouse sells, transfers or otherwise disposes of the property they owned
with the qualifying veteran, they no longer were eligible for the exclusion.
Effective Date: Effective for applications in 2020, taxes payable in 2021, and thereafter.