In 1994, the Minnesota Seasonal and Recreational Property Owners (MSRPO) Coalition formed on Lake Vermilion and organized around the issue of skyrocketing lakeshore property taxes. In particular, taxes on seasonal and recreational properties. Today, that group has grown in size and scope, and is known as Minnesota Lakes and Rivers Advocates (MLRA).
A 2016 study found that the average cabin owner makes just $58,000 per year. Most aren’t millionaires. They are everyday people. Despite the facts, some legislators say, “if you can afford a lake place, you can afford the taxes.”
This a threat to Minnesota’s lakes and rivers because when those properties are sold, they’re often subdivided and overdeveloped, with suburban style lawns replacing natural forests and native buffer zones. In 2000, the average seasonal lot was 78 acres, just seven years later it was down to 40 acres. This degrades the water quality by increasing runoff pollution and reducing natural habitat, and it drives families out of the properties they’ve enjoyed for generations—eroding Minnesota’s lake and river heritage.
Since 1994, MLRA has made significant progress on reducing lakeshore property taxes:
- Lowered the tax rate on a cabin from 2.25% to 1%—the same as a homestead,
- Championed the Limited Market Value law that capped year-to-year increases on property tax assessments at 8% from 1994 to 2009,
- Created the Managed Forest Tax Classification for undeveloped lakeshore property, lowering the tax rate to from 1% to 0.65%,
- Secured higher Payment in Lieu of Taxes (PILT) payments for counties with a high percentage of tax-exempt public lands. This lowers the property taxes burden for residents in those areas.
These accomplishments come from a hard-won reputation for bipartisanship at the legislature. With your support, we can do even more in the coming legislative session.
Your membership in MLRA today is an investment in the affordability of your lake place tomorrow and for generations to come.