HF 1661

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:53am

A bill for an act
relating to taxation; providing that certain elderly living facilities are exempt
from property taxation; providing an exemption for the purchase of materials
and supplies used in the construction of certain elderly living facilities from
sales taxation; amending Minnesota Statutes 2008, sections 272.02, by adding a
subdivision; 297A.71, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 272.02, is amended by adding a
subdivision to read:

new text begin Subd. 90. new text end

new text begin Elderly living facility. new text end

new text begin An elderly living facility is exempt from taxation
if it meets all of the following requirements:
new text end

new text begin (1) the facility consists of no more than 75 living units;
new text end

new text begin (2) the facility is located in a city of the first class with a population of more than
350,000;
new text end

new text begin (3) the facility is owned and operated by a nonprofit corporation organized under
chapter 317A;
new text end

new text begin (4) the owner of the facility is an affiliate of entities that own and operate assisted
living and skilled nursing facilities that:
new text end

new text begin (i) are located across a street from the facility;
new text end

new text begin (ii) are adjacent to a church that is exempt from taxation under subdivision 6;
new text end

new text begin (iii) include a congregate dining program; and
new text end

new text begin (iv) provide assisted living or similar social and physical support;
new text end

new text begin (5) the residents of the facility must be:
new text end

new text begin (i) at least 62 years of age; or
new text end

new text begin (ii) handicapped;
new text end

new text begin (6) at least 30 percent of the units in the facility are occupied by persons whose
annual income does not exceed 50 percent of median family income for the area or, in the
alternative, 40 percent of the units in the facility are occupied by persons whose annual
income does not exceed 60 percent of median family income for the area; and
new text end

new text begin (7) before the effective date of this subdivision, the facility has received design
approval from the city in which it is to be located.
new text end

new text begin In this subdivision, "affiliate" means any entity directly or indirectly controlling or
controlled by or under direct or indirect common control with an entity, and "control"
means the power to direct management and policies through membership or ownership
of voting securities.
new text end

new text begin The exemption provided in this subdivision applies to taxes levied in each year or
partial year of the term of the facility's initial permanent financing or 25 years, whichever
is later.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2008, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 41. new text end

new text begin Elderly living facility. new text end

new text begin Purchases of materials and supplies used or
consumed in and equipment incorporated into the construction of an elderly living facility
is exempt from the tax imposed by this chapter if the facility meets all of the following
requirements:
new text end

new text begin (1) the facility is to consist of no more than 75 living units;
new text end

new text begin (2) the facility is to be located in a city of the first class with a population of more
than 350,000;
new text end

new text begin (3) the facility is to be owned and operated by a nonprofit corporation organized
under chapter 317A;
new text end

new text begin (4) the owner of the facility is to be an affiliate of entities that own and operate
assisted living and skilled nursing facilities that:
new text end

new text begin (i) are located across a street from the facility;
new text end

new text begin (ii) are adjacent to a church that is exempt from taxation under section 272.02,
subdivision 6;
new text end

new text begin (iii) include a congregate dining program; and
new text end

new text begin (iv) provide assisted living or similar social and physical support;
new text end

new text begin (5) the residents of the facility must be:
new text end

new text begin (i) at least 62 years of age; or
new text end

new text begin (ii) handicapped;
new text end

new text begin (6) at least 30 percent of the units in the facility are to be occupied by persons whose
annual income does not exceed 50 percent of median family income for the area or, in the
alternative, 40 percent of the units in the facility are occupied by persons whose annual
income does not exceed 60 percent of median family income for the area; and
new text end

new text begin (7) before the effective date of this subdivision, the facility has received design
approval from the city in which it is to be located.
new text end

new text begin In this subdivision, "affiliate" means any entity directly or indirectly controlling or
controlled by or under direct or indirect common control with an entity, and "control"
means the power to direct management and policies through membership or ownership
of voting securities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made the day following
final enactment and thereafter.
new text end