1.1 	A bill for an act
1.2 	relating to education finance; requiring the
1.3 	commissioner of education to conduct a study on the
1.4 	effect of property tax payments on charter school
1.5 	finances; requiring a report.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. CHARTER SCHOOL FACILITY PROPERTY TAX PAYMENT
1.8 	STUDY.
 1.9 		Subdivision 1.Commissioner to conduct study. The
1.10 	commissioner of education, in consultation with the commissioner
1.11 	of revenue, must conduct a study to evaluate the impact of
1.12 	property tax payments on charter school finances.  The study
1.13 	must identify the types of building lease arrangements and
1.14 	building ownership configurations that subject the owner of a
1.15 	charter school facility to state and local property taxes.  The
1.16 	study must also determine whether assessment practices related
1.17 	to charter school facilities are consistent across the state.
1.18 		Subd. 2.Report. The commissioner of education must
1.19 	report the results of the study to the house and senate
1.20 	committees with jurisdiction over education and taxes by
1.21 	February 15, 2006.  The commissioner of education may include in
1.22 	the report proposed legislation to clarify the property tax
1.23 	treatment of charter school facilities.
1.24 	
EFFECTIVE DATE. This section is effective the day
1.25 	following final enactment.