HF 2815

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; exempting from taxation property leased or rented
and used exclusively for charter schools; amending Minnesota Statutes 2004,
section 272.02, subdivision 42.

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

Section 1.

Minnesota Statutes 2004, section 272.02, subdivision 42, is amended to read:

Subd. 42.

Property leased to school districts.

new text begin (a) new text end 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 direct instruction in any grade
from kindergarten through grade 12; special education for handicapped 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 (b) Property that is leased or rented to a charter school is exempt from taxation if it
meets the following requirements:
new text end

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

new text begin (2) the terms of the lease cannot provide revenue to the landlord in an amount
exceeding the landlord's expenses, whereby no net earnings from this exemption inure
to the landlord;
new text end

new text begin (3) the charter school must use the property to provide direct instruction in any grade
from kindergarten through grade 12; special education for disabled children; 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
new text end

new text begin (4) the lease must provide that the charter school has the exclusive use of the
property during the lease period.
new text end

new text begin The landlord shall provide the board of the charter school documentation of the
landlord's expenses to insure that the savings from the property tax exemption under
this paragraph are realized by the charter school. A copy of this documentation must be
made available to the assessor upon request.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter.
new text end