Bill could drown state property tax on cabins

Minnesota's famous cabin culture could soon get a big tax break from the Legislature.

Rep. Greg Davids, R-Preston, the chair of the House of Representatives tax committee, said a DFL provision to gradually phase out the state property tax on cabins made it (with some changes) into the House's tax bill. However, the cabin provision along with the rest of the omnibus tax reform bill is idling in the conference committee phase, where the DFL-controlled Senate and the Republican-controlled House negotiate to reconcile their two versions of the bill.

---

"That's not high on my priority list." - Sen. Paul Gazelka, R-Nisswa

--- As it stands now, cabins are taxed by the state alongside commercial and industrial property. The Star Tribune reported that the tax generates almost $44 million revenue from roughly 120,000 properties.

Rep. Ron Erhardt, DFL-Edina, authored House File 665, a bill that would gradually shift the state tax burden from "seasonal residential recreational property"-that is to say, cabins-to business property over a period of five years.

Davids said there were multiple tax reform proposals on cabins put in by both sides of the aisle.

"What in the world are we lining the state's coffers off of cabin owner's property tax (for)?" he said. "If the DFL has a proposal to get rid of, phase out the commercial-industrial tax in any area, I'm certainly going to take a look at it. I need to build a bipartisan bill that (DFL Gov. Mark Dayton) will sign."

Sen. Paul Gazelka, R-Nisswa, serves on the tax conference committee. He said the cabin proposal depends on what legislators decide to set as the numerical target of all overall tax reductions for the omnibus tax bill. In Gazelka's opinion, there are probably more worthy recipients of tax cuts than cabin owners.

"That's not high on my priority list," he said.

Cuts to state taxes on military pensions, business property and Social Security income are important to Minnesotans, he said.

Davids said it was "hard to say" whether the cabin proposal would make it into the final bill. The Senate, he said, has "some concerns."

ZACH KAYSER may be reached at 218-855-5860 or Zach.Kayser@brainerddispatch.com . Follow him on Twitter at www.twitter.com/ZWKayser .