HF 2340

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing that certain property leased to school districts
is exempt from taxation; amending Minnesota Statutes 2006, section 272.02,
subdivision 42.

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

Section 1.

Minnesota Statutes 2006, section 272.02, subdivision 42, is amended to read:

Subd. 42.

Property leased to school districts.

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 new text begin either:
new text end

new text begin (i) new text end require the school district to pay a nominal consideration for use of the building; new text begin or
new text end

new text begin (ii) provide that the consideration that would otherwise be charged to the school
district for lease or rental of the property will be reduced by an amount equal to the
property tax forgone due to the exemption, as verified by the assessor;
new text end

(3) the school district must use the property to provide direct instruction in any
grade from kindergarten through grade 12; special education for disabled children; adult
basic education as described in section 124D.52; preschool and early childhood family
education; or 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2007 and
thereafter.
new text end