HF 3605

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/28/2024 05:55pm

A bill for an act
relating to taxation; property tax refunds; establishing a property tax refund program
for child care providers that rent a child care facility; requiring a report;
appropriating money; amending Minnesota Statutes 2022, sections 290A.03, by
adding a subdivision; 290A.04, by adding a subdivision; 290A.23, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Eligible child care facility. new text end

new text begin "Eligible child care facility" means the portion
of a property used as a licensed child care facility that accepts families participating in the
child care assistance program under chapter 119B, and that is operated by a nonprofit
charitable organization that qualifies for tax exemption under section 501(c)(3) of the Internal
Revenue Code. For the purposes of this subdivision, "licensed child care facility" means a
child care center licensed under Minnesota Rules, chapter 9503, or a facility used to provide
licensed family day care or group family day care as defined under Minnesota Rules, chapter
9502.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2023
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2022, section 290A.04, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Refund for child care facilities. new text end

new text begin (a) An eligible child care facility is allowed
a refund equal to ten percent of gross rent actually paid in cash, or cash equivalent, in any
calendar year.
new text end

new text begin (b) To claim the refund under this subdivision, an eligible child care facility must apply
to the commissioner in the calendar year following the year in which the facility paid rent.
The application must be in the form and manner specified by the commissioner.
new text end

new text begin (c) The commissioner must pay refunds under this section in accordance with section
290A.07, subdivision 3.
new text end

new text begin (d) The owner of a property for which an eligible child care facility pays rent for the
right of occupancy must furnish a certificate of rent paid to the eligible child care facility,
as provided in section 290A.19. The rules in that section apply to certificates of rent paid
required under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2023
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2022, section 290A.23, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Refund for child care facilities; appropriation. new text end

new text begin The amount necessary to pay
refunds under section 290A.04, subdivision 7, is appropriated to the commissioner from
the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2023
and thereafter.
new text end

Sec. 4. new text begin REPORT; RENT CONSTITUTING PROPERTY TAXES FOR CHILD
CARE FACILITIES.
new text end

new text begin No later than March 1, 2025, the commissioner of revenue must submit a report to the
chairs and ranking members of the legislative committees and divisions with jurisdiction
over taxes and property taxes. The report must estimate the share of rent constituting property
taxes for child care facilities eligible for a refund under Minnesota Statutes, section 290A.04,
subdivision 7. To the extent feasible, the report must provide separate estimates for the
share of rent constituting property taxes for child care facilities in Minneapolis, St. Paul,
the seven-county metropolitan area, and counties outside of the metropolitan area. The
report may include any other information the commissioner deems relevant to determining
the appropriate percentage under Minnesota Statutes, section 290.04, subdivision 7, paragraph
(a), and recommendations for modifications to the property tax refund for child care facilities.
The report must comply with Minnesota Statutes, sections 3.195 and 3.197.
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