Governor Dayton recently proposed a budget that, among other things, may broaden the “snow bird” tax base. While those affected by the proposed legislation are most likely wealthy people who have second homes in warmer climates, the law would affect any individual who owns Minnesota real estate and spends more than 60 days in Minnesota each year. The proposed tax liability would be pro-rata based on the number of days an individual spends in Minnesota.
There is much speculation surrounding this proposed legislation: who will it affect, how will it be enforced, and what will the snowbirds do? For now, all we can do is speculate. If the proposed tax becomes law, we will be sure to share a detailed analysis of how it affects our clients.