Changes in Minnesota tax law, and potential for 50% return on investment prompt conversion of Duluth neighborhood to student rentals.
"A 1995 change in homestead tax laws accelerated the land grab in neighborhoods around University of Minnesota - Duluth. The legislation allows Minnesota residents to pay lower property tax rates on more than one property, if a family member is the primary tenant. The legislation was designed to provide tax breaks for cabin owners, but another result was it saved families thousands if parents bought homes for their children in college. St. Cloud and Winona, which both have state colleges, have seen similar trends...Many local residents don't have the money to compete."
Thanks to Bob Karrow
FULL STORY: Residents fear rentals will bury neighborhoods
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