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HF 1740

as introduced - 89th Legislature (2015 - 2016) Posted on 03/11/2015 11:55am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2015

Current Version - as introduced

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A bill for an act
relating to taxation; property; exempting certain property used to provide services
to school district employees from taxation; amending Minnesota Statutes 2014,
sections 272.01, subdivision 2; 272.02, subdivision 42.

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

Section 1.

Minnesota Statutes 2014, section 272.01, subdivision 2, is amended to read:


Subd. 2.

Exempt property used by private entity for profit.

(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
leased, loaned, or otherwise made available and used by a private individual, association,
or corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.

(b) The tax imposed by this subdivision shall not apply to:

(1) property leased or used as a concession in or relative to the use in whole
or part of a public park, market, fairgrounds, port authority, economic development
authority established under chapter 469, municipal auditorium, municipal parking facility,
municipal museum, or municipal stadium;

(2) property of an airport owned by a city, town, county, or group thereof which is:

(i) leased to or used by any person or entity including a fixed base operator; and

(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
services, or facilities to the airport or general public;

the exception from taxation provided in this clause does not apply to:

(i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or

(ii) hangars leased by a private individual, association, or corporation in connection
with a business conducted for profit other than an aviation-related business;

(3) property constituting or used as a public pedestrian ramp or concourse in
connection with a public airport;

(4) property constituting or used as a passenger check-in area or ticket sale counter,
boarding area, or luggage claim area in connection with a public airport but not the
airports owned or operated by the Metropolitan Airports Commission or cities of over
50,000 population or an airport authority therein. Real estate owned by a municipality
in connection with the operation of a public airport and leased or used for agricultural
purposes is not exempt;

(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to
section 97A.135; deleted text begin or
deleted text end

(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4deleted text begin .deleted text end new text begin ; or
new text end

new text begin (7) property owned by a school district and leased for use as a medical clinic serving
employees of the district.
new text end

(c) Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes
shall not become a lien against the property. When due, the taxes shall constitute a debt due
from the lessee or user to the state, township, city, county, and school district for which the
taxes were assessed and shall be collected in the same manner as personal property taxes.
If property subject to the tax imposed by this subdivision is leased or used jointly by two or
more persons, each lessee or user shall be jointly and severally liable for payment of the tax.

(d) The tax on real property of the federal government, the state or any of its political
subdivisions that is leased, loaned, or otherwise made available to a private individual,
association, or corporation and becomes taxable under this subdivision or other provision
of law must be assessed and collected as a personal property assessment. The taxes do
not become a lien against the real property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 272.02, subdivision 42, is amended to read:


Subd. 42.

Property leased to schools.

(a) Property that is leased or rented to a
school district is exempt from taxation if it meets the following requirements:

(1) the lease must be for a period of at least 12 consecutive months;

(2) the terms of the lease must require the school district to pay a nominal
consideration for use of the building;

(3) the school district must use the property to provide new text begin (i) new text end direct instruction in any
grade from kindergarten through grade 12; new text begin (ii) new text end special education for disabled children; new text begin (iii)
new text end adult basic education as described in section 124D.52; new text begin (iv) new text end preschool and early childhood
family education; new text begin (v) services to employees of the school district; new text end or new text begin (vi) new text end community
education programs, including provision of administrative services directly related to
the educational program at that site; and

(4) the lease must provide that the school district has the exclusive use of the
property during the lease period.

(b) Property that is leased or rented to a charter school formed and operated under
section 124D.10 is exempt from taxation if it meets all of the following requirements:

(1) the lease is for a period of at least 12 consecutive months;

(2) the property is owned by (i) a nonprofit corporation or association exempt from
federal income tax under section 501(c)(2) or (3) of the Internal Revenue Code; (ii) a
public school district, college, or university; (iii) a private academy, college, university, or
seminary of learning; (iv) a church; or (v) the state or a political subdivision of the state;

(3) the charter school must use the property to provide (i) direct instruction in any
grade from kindergarten through grade 12; (ii) special education for disabled children; or
(iii) administrative services directly related to the educational program at that site; and

(4) except for lease provisions that allow for the shared use of the property by (i)
the charter school and another public or private school; (ii) the charter school and a
church; or (iii) the charter school and the state or a political subdivision of the state, the
lease must provide that the charter school has the exclusive right to use the property
during the lease period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2015.
new text end