1.1 	A bill for an act
1.2 	relating to taxation; providing property tax exemption for certain leased lands; 
1.3 	modifying definition of personal property; clarifying tax-exempt property held 
1.4 	under a lease;amending Minnesota Statutes 2006, sections 272.02, by adding a 
1.5 	subdivision; 272.03, subdivision 2; 273.19, subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2006, section 272.02, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 18a.Leased lands. Lands of a county, city, or town that are leased or 
1.10 	rented by that entity for noncommercial seasonal recreational or noncommercial seasonal 
1.11 	recreational residential use are exempt.

1.12 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
1.13 	thereafter.

1.14 	Sec. 2. Minnesota Statutes 2006, section 272.03, subdivision 2, is amended to read:
1.15 		Subd. 2.Personal property. For the purposes of taxation, "personal property" 
1.16 	includes:
1.17 	(1) All goods, chattels, money and effects;
1.18 	(2) All ships, boats, and vessels belonging to inhabitants of this state and all capital 
1.19 	invested therein;
1.20 	(3) All improvements upon land the fee of which is vested in the United States, the 
1.21 	state, except lands held in trust by the state under section 281.25, a county, city, or town,
1.22 	and all improvements upon land the title to which is vested in any corporation whose 
1.23 	property is not subject to the same mode and rule of taxation as other property;
2.1 	(4) All stock of nursery operators, growing or otherwise;
2.2 	(5) All gas, electric, and water mains, pipes, conduits, subways, poles, and wires of 
2.3 	gas, electric light, water, heat, or power companies, and all tracks, roads, conduits, poles, 
2.4 	and wires of street railway, plank road, gravel road, and turnpike companies;
2.5 	(6) All credits over and above debts owed by the creditor;
2.6 	(7) The income of every annuity, unless the capital of the annuity is taxed within 
2.7 	this state;
2.8 	(8) All public stocks and securities;
2.9 	(9) All personal estate of moneyed corporations, whether the owners reside within 
2.10 	or without the state;
2.11 	(10) All shares in foreign corporations owned by residents of this state; and
2.12 	(11) All shares in banks organized under the laws of the United States or of this state.

2.13 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
2.14 	thereafter.

2.15 	Sec. 3. Minnesota Statutes 2006, section 273.19, subdivision 1, is amended to read:
2.16 		Subdivision 1.Tax-exempt property; lease. Except as provided in subdivision 3 or 
2.17 	4, tax-exempt property held under a lease for a term of at least one year, and not taxable 
2.18 	under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be 
2.19 	considered, for all purposes of taxation, as the property of the person holding it. In this 
2.20 	subdivision, "tax-exempt property" means property owned by the United States, the state, 
2.21 	a school, or any religious, scientific, or benevolent society or institution, incorporated or 
2.22 	unincorporated, or any corporation whose property is not taxed in the same manner as 
2.23 	other property. This subdivision does not apply to property exempt from taxation under 
2.24 	section 272.01, subdivision 2, paragraph (b), clauses (2), (3), and (4), and does not apply 
2.25 	to federal or state government fee land that is leased or rented for noncommercial seasonal 
2.26 	recreational or noncommercial seasonal recreational residential use. 

2.27 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
2.28 	thereafter.