HF 3386

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

A bill for an act
relating to property taxes; providing clarification for eligibility for property tax
exemption for public charity institutions; amending Minnesota Statutes 2006,
section 272.02, subdivision 7.

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

Section 1.

Minnesota Statutes 2006, section 272.02, subdivision 7, is amended to read:

Subd. 7.

Institutions of public charity.

new text begin (a) new text end Institutions of purely public charity are
exempt. new text begin In determining whether the owner of real property is exempt as an institution of
purely public charity, the assessing authority shall consider each of the following factors:
new text end

new text begin (1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;
new text end

new text begin (2) whether the entity involved is supported by donations and gifts in whole or in
part;
new text end

new text begin (3) whether the recipients of the charity are required to pay for the assistance
received in whole or in part;
new text end

new text begin (4) whether the income received from the gifts and donations and charges to users
produces a profit to the charitable institution;
new text end

new text begin (5) whether the beneficiaries of the charity are restricted or unrestricted and, if
restricted, whether the class of persons to whom the charity is made available is one
having a reasonable relationship to the charitable objectives; and
new text end

new text begin (6) whether dividends, in form or substance, or assets upon dissolutions are available
to private interests.
new text end

new text begin None of the six factors alone shall be determinative or given greater weight by the
assessing authority and the courts and other factors may be considered.
new text end

new text begin (b) new text end In determining whether rental housing property qualifies for exemption under
this subdivision, the following are not gifts or donations to the owner of the rental housing:

(1) rent assistance provided by the government to or on behalf of tenants; and

(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or
families with certain income characteristics.

new text begin In all other instances, government payments of any nature whatsoever to an entity shall
be considered as gifts or donations to the entity for purposes of determining whether an
entity satisfies the factors enumerated above.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2009 and
thereafter.
new text end

Sec. 2. new text begin PURPOSE.
new text end

new text begin The purpose of section 1 is to codify, but not expand, the standards set forth for
consideration in North Star Research Institute v. County of Hennepin, 306 Minn. 1,
6, 236 N.W.2d 754, 757 (1975).
new text end