Commissioner’s Comments

By Robert Doty MN Revenue Commissioner

New Year, New Opportunities

Now that 2021 is here, the Department of Revenue is gearing up for another productive year for the agency and our partners like MAAO.

Before continuing this discussion, I’d like to introduce myself as the new revenue commissioner. For the last three decades, I’ve worked as an accounting, finance, and organizational leader in both the private and public sectors.

Most recently, I served as Revenue’s assistant commissioner for tax policy and public engagement. In that role, I’ve seen how the department’s partnership with MAAO benefits our state.

I look forward to building on this relationship, and to meeting you –whether virtually or in-person – at future MAAO-Revenue events.

Fluid Situation

The COVID-19 pandemic continues to present special challenges to property assessors and dominate public debate at the Capitol as the legislative session begins (January 5). Taxes will also be on the agenda as the governor and legislators craft a budget for 202223.

You play a key role in our property tax system, which helps fund important public services across Minnesota. Whatever this year brings, the department is here to support you with the tools and guidance you need. In normal times, physical inspections and meetings make up a large part of your work. But last year we all needed to adapt quickly to social distancing requirements and other safety measures just as appeals season began – one of the busiest times on the property tax calendar. We continued to adapt our routines throughout the year. Together, we tackled many questions about how to fulfill assessors’ statutory duties in a safe way for you and the Minnesotans we all serve.

I know our Property Tax Division discussed these, and other topics, with you at the MAAO Fall Conference in October. That discussion showed how many assessors found the transition to working from home relatively easy, though not always seamless, which mirrors our experience at Revenue.

We’re fortunate that telework and online conferencing technology make it possible to do much of our work at a safe, social distance. We may be able to transition back to office work this year, as COVID-19 vaccines become more available. However, we all continue to deal with some big unknowns. It’s not yet clear when things will start returning to what we remember as “normal.” At the Fall Conference, some concerns were raised about the pandemic’s continuing impact on our collective work.

We continue to take questions and consider options for how to administer property taxes in a safe and fair manner for 2021 and beyond. For now, please stay safe and follow our existing guidance on the use of virtual meetings and other tools to do your work remotely.

The department will continue to monitor this situation and the

legislative session. As always, we’ll provide updates and guidance on any law or policy changes that affect your work.

Short-Term Rentals

Speaking of changes, in December we sent you guidance on a new law that clarifies the classification of residential properties rented out by their owners. Qualifying short-term rental properties may be classified as 4b(1) residential nonhomestead if they: • Rented for more than 14 days in the previous year

Rented for periods of less than 30 consecutive days

Have fewer than four units

Are not homesteaded

The new law applies only to taxes payable in 2022 and later. For 2021, the classification made during the 2020 assessment applies. If you have any questions, please email us at proptax.questions@state. mn.us or contact your Property Tax Compliance Officer.

Building One Minnesota

Finally, I’m honored that Gov. Tim Walz appointed me to lead the department. I share his vision for One Minnesota. As commissioner, my top priority is to provide a fair and transparent revenue system to help plan for Minnesota’s future.

Increasing diversity, equity, and inclusion for the Minnesotans we serve and within our own agency is a key part of this effort at Revenue– as it is for all government agencies. After the MAAO conference, several of you shared what your organizations are doing in this regard. To name a few:

Training employees on diversity, equity, and inclusion Providing information in alternate languages or formats for people whose primary language is not English, or who may have visual or other impairments to reading

Internship programs to draw new assessors from diverse backgrounds into the field

Sharing information among assessors of different ages and experiences, and mentoring staff

These kinds of engagement help all of us, whether in - or outside of government. I’m excited to see the progress we’ll make together.

On behalf of everyone at Revenue, Happy New Year – and thank you for your partnership. Robert Doty is commissioner of the Minnesota Department of Revenue.

If you have any questions, please email us at proptax.questions@state.mn.us or contact your Property Tax Compliance Officer.