Associated Press, Published December 09 2009
Minnesota lake cabin owners prepare for property tax hitST. PAUL, Minn. — A change in state law means thousands of Minnesota property owners will face big property tax increases next year and cabin owners will be among the hardest hit.
Minnesota Public Radio News reports that for many years the limited market value provision in the tax code has shielded lake cabin owners when property values rapidly increased.
There was a cap on how much of that increase could be taxed, so in many cases the gap between market value and taxable value grew.
At the program's peak in 2004, nearly $32 billion was excluded from the property tax rolls under LMV. However, the Legislature voted in 2000 to phase out the program in 2009.
For an example of what it means to lake cabin owners, look to Otter Tail County. Assessor Robert Moe says some lake residents there may see property tax increases of 30 percent or more.
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