Share Could the City look into something like a homestead tax savings to better promote individual homeownership instead of landlord-purchased housing? on Facebook
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Could the City look into something like a homestead tax savings to better promote individual homeownership instead of landlord-purchased housing?
Blooming Ton Minnie Sota
asked
over 2 years ago
Property classification for homestead or rental is a state classification. The homestead market value exclusion is determined by the legislature along with class rates. So unfortunately, the city has no control over the difference in taxes paid by an owner-occupied home and a rental home. Rates are also significantly different between owner-occupied and rental properties with owner-occupied rates lower than rental property rates. More specific information about rates and classification are below.
There is a difference in the class rate – a homestead property is class 1a and receive a 1.0% class rate for the first $500,000 in value, then a 1.25% class rate for everything over that threshold. A rental property is class 4b(1) and receives a 1.25% class rate with no lower rate for the first $500,000 in value.
Additionally, the homestead market value exclusion can exclude a maximum of $38,000 in value. This exclusion scales down as the value of a property increases towards $517,200 and disappears once the value surpasses that mark. This was increased in last year’s tax bill from a max $30,400 exclusion and top end threshold of $413,800.
So, there is already a sizeable difference in taxes paid between a homestead property and a rental property.
Share This is such an important topic! I wish the city would allow apartment buildings intermixed in purely residential areas, and not only on busier main streets like Lyndale or Nicollet, for example. Why can't a small apartment or condo with 4 or 8 units be built between two single-family homes? There is no reason other than its never been allowed, but that hardly is a reason not to allow it now. Minneapolis and St. Paul both do, and many of the apartment buildings hardly seem like apartments. We have to move away from the idea that apartments must be separate and that they must be near public transport (that should be a priority for all neighborhoods, but that is a different topic!).
And then another thing to change is ordinances about lot size, set-back and minimum house size. If I have a large lot that can fit two smaller homes, I should be allowed to build two smaller homes and rent one or sell it. Why not? on Facebook
Share This is such an important topic! I wish the city would allow apartment buildings intermixed in purely residential areas, and not only on busier main streets like Lyndale or Nicollet, for example. Why can't a small apartment or condo with 4 or 8 units be built between two single-family homes? There is no reason other than its never been allowed, but that hardly is a reason not to allow it now. Minneapolis and St. Paul both do, and many of the apartment buildings hardly seem like apartments. We have to move away from the idea that apartments must be separate and that they must be near public transport (that should be a priority for all neighborhoods, but that is a different topic!).
And then another thing to change is ordinances about lot size, set-back and minimum house size. If I have a large lot that can fit two smaller homes, I should be allowed to build two smaller homes and rent one or sell it. Why not? on X (formerly Twitter)
Share This is such an important topic! I wish the city would allow apartment buildings intermixed in purely residential areas, and not only on busier main streets like Lyndale or Nicollet, for example. Why can't a small apartment or condo with 4 or 8 units be built between two single-family homes? There is no reason other than its never been allowed, but that hardly is a reason not to allow it now. Minneapolis and St. Paul both do, and many of the apartment buildings hardly seem like apartments. We have to move away from the idea that apartments must be separate and that they must be near public transport (that should be a priority for all neighborhoods, but that is a different topic!).
And then another thing to change is ordinances about lot size, set-back and minimum house size. If I have a large lot that can fit two smaller homes, I should be allowed to build two smaller homes and rent one or sell it. Why not? on Linkedin
Email This is such an important topic! I wish the city would allow apartment buildings intermixed in purely residential areas, and not only on busier main streets like Lyndale or Nicollet, for example. Why can't a small apartment or condo with 4 or 8 units be built between two single-family homes? There is no reason other than its never been allowed, but that hardly is a reason not to allow it now. Minneapolis and St. Paul both do, and many of the apartment buildings hardly seem like apartments. We have to move away from the idea that apartments must be separate and that they must be near public transport (that should be a priority for all neighborhoods, but that is a different topic!).
And then another thing to change is ordinances about lot size, set-back and minimum house size. If I have a large lot that can fit two smaller homes, I should be allowed to build two smaller homes and rent one or sell it. Why not? link
This is such an important topic! I wish the city would allow apartment buildings intermixed in purely residential areas, and not only on busier main streets like Lyndale or Nicollet, for example. Why can't a small apartment or condo with 4 or 8 units be built between two single-family homes? There is no reason other than its never been allowed, but that hardly is a reason not to allow it now. Minneapolis and St. Paul both do, and many of the apartment buildings hardly seem like apartments. We have to move away from the idea that apartments must be separate and that they must be near public transport (that should be a priority for all neighborhoods, but that is a different topic!).
And then another thing to change is ordinances about lot size, set-back and minimum house size. If I have a large lot that can fit two smaller homes, I should be allowed to build two smaller homes and rent one or sell it. Why not?
KarenMpls
asked
almost 3 years ago
Thank you for your comment, and we are so pleased to hear that you value diversity in the form and scale of housing. Much of the conditions you describe (i.e., why can’t small apartments or condos be built as infill development between two existing single-unit dwellings, why must multi-family apartments exist in such a small percentage of the land zoned for residential use in the City) are the result of, as you described, the mere fact that it represents a change from how the community developed in the Post-WW2 era expansion. The goal of the Missing Middle study is to determine the right balance of change using code changes, interdepartmental coordination efforts, wide- reaching outreach and education opportunities to ensure that high-opportunity areas increase their housing options. If you would like to stay in touch as this project evolves, please feel free to reach out to me (my contact information is provided under the heading 'Who's Listening') or you may sign up for periodic updates by subscribing to this project. Thanks again for your question! -Mallory
Missing Middle Housing Phase II Ordinance (478 KB) (pdf)
