HF 3678

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/21/2022 02:50pm

A bill for an act
relating to taxation; modifying property tax exemption for certain airport property;
amending Minnesota Statutes 2020, section 272.01, subdivision 2.

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

Section 1.

Minnesota Statutes 2020, 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) new text begin except as provided in paragraph (c), new text end 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 deleted text begin or deleted text end new text begin , new text end repair new text begin , or manufacture new text end of aircraft or to provide
aviation goods, services, or facilities to the airport or general public;

deleted text begin the exception from taxation provided in this clause does not apply to:
deleted text end

deleted text begin (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
deleted text end

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

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

(4) new text begin except as provided in paragraph (d), new text end 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 deleted text begin 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 deleted text end ;

(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; or

(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4.

new text begin (c) The exception from taxation provided in paragraph (b), clause (2), does not apply
to:
new text end

new text begin (1) property located at an airport owned or operated by:
new text end

new text begin (i) the Metropolitan Airports Commission; or
new text end

new text begin (ii) a city of over 150,000 population according to the most recent federal census or such
a city's airport authority. For a city over 50,001 but under 150,000 in population according
to the most recent federal census or such a city's airport authority, for calculating the tax
imposed by this subdivision, the net tax capacity of the property is reduced by 50 percent;
or
new text end

new text begin (2) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business.
new text end

new text begin (d) The exception from taxation provided in paragraph (b), clause (4), does not apply
to:
new text end

new text begin (1) the property described in paragraph (b), clause (4), at airports that are owned or
operated by:
new text end

new text begin (i) the Metropolitan Airports Commission; or
new text end

new text begin (ii) cities of over 150,000 population or an airport authority therein. For a city over
50,001 but under 150,000 in population according to the most recent federal census or such
a city's airport authority, for calculating the tax imposed by this subdivision, the net tax
capacity of the property is reduced by 50 percent; or
new text end

new text begin (2) real estate owned by a municipality in connection with the operation of a public
airport and leased or used for agricultural purposes.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end 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.

deleted text begin (d) deleted text end new text begin (f) new text end 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.