as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; providing a property tax 1.3 exemption for federal land used for cottage and camp 1.4 purposes; amending Minnesota Statutes 1994, section 1.5 272.02, subdivision 1. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 1994, section 272.02, 1.8 subdivision 1, is amended to read: 1.9 Subdivision 1. All property described in this section to 1.10 the extent herein limited shall be exempt from taxation: 1.11 (1) All public burying grounds. 1.12 (2) All public schoolhouses. 1.13 (3) All public hospitals. 1.14 (4) All academies, colleges, and universities, and all 1.15 seminaries of learning. 1.16 (5) All churches, church property, and houses of worship. 1.17 (6) Institutions of purely public charity except parcels of 1.18 property containing structures and the structures described in 1.19 section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 1.20 and (3), or paragraph (d), other than those that qualify for 1.21 exemption under clause (25). 1.22 (7) All public property exclusively used for any public 1.23 purpose. 1.24 (8) Except for the taxable personal property enumerated 1.25 below, all personal property and the property described in 2.1 section 272.03, subdivision 1, paragraphs (c) and (d), shall be 2.2 exempt. 2.3 The following personal property shall be taxable: 2.4 (a) personal property which is part of an electric 2.5 generating, transmission, or distribution system or a pipeline 2.6 system transporting or distributing water, gas, crude oil, or 2.7 petroleum products or mains and pipes used in the distribution 2.8 of steam or hot or chilled water for heating or cooling 2.9 buildings and structures; 2.10 (b) railroad docks and wharves which are part of the 2.11 operating property of a railroad company as defined in section 2.12 270.80; 2.13 (c) personal property defined in section 272.03, 2.14 subdivision 2, clause (3); 2.15 (d) leasehold or other personal property interests which 2.16 are taxed pursuant to section 272.01, subdivision 2; 273.124, 2.17 subdivision 7; or 273.19, subdivision 1; or any other law 2.18 providing the property is taxable as if the lessee or user were 2.19 the fee owner; 2.20 (e) manufactured homes and sectional structures, including 2.21 storage sheds, decks, and similar removable improvements 2.22 constructed on the site of a manufactured home, sectional 2.23 structure, park trailer or travel trailer as provided in section 2.24 273.125, subdivision 8, paragraph (f); and 2.25 (f) flight property as defined in section 270.071. 2.26 (9) Personal property used primarily for the abatement and 2.27 control of air, water, or land pollution to the extent that it 2.28 is so used, and real property which is used primarily for 2.29 abatement and control of air, water, or land pollution as part 2.30 of an agricultural operation, as a part of a centralized 2.31 treatment and recovery facility operating under a permit issued 2.32 by the Minnesota pollution control agency pursuant to chapters 2.33 115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 2.34 and 7045.0020 to 7045.1260, as a wastewater treatment facility 2.35 and for the treatment, recovery, and stabilization of metals, 2.36 oils, chemicals, water, sludges, or inorganic materials from 3.1 hazardous industrial wastes, or as part of an electric 3.2 generation system. For purposes of this clause, personal 3.3 property includes ponderous machinery and equipment used in a 3.4 business or production activity that at common law is considered 3.5 real property. 3.6 Any taxpayer requesting exemption of all or a portion of 3.7 any real property or any equipment or device, or part thereof, 3.8 operated primarily for the control or abatement of air or water 3.9 pollution shall file an application with the commissioner of 3.10 revenue. The equipment or device shall meet standards, rules, 3.11 or criteria prescribed by the Minnesota pollution control 3.12 agency, and must be installed or operated in accordance with a 3.13 permit or order issued by that agency. The Minnesota pollution 3.14 control agency shall upon request of the commissioner furnish 3.15 information or advice to the commissioner. On determining that 3.16 property qualifies for exemption, the commissioner shall issue 3.17 an order exempting the property from taxation. The equipment or 3.18 device shall continue to be exempt from taxation as long as the 3.19 permit issued by the Minnesota pollution control agency remains 3.20 in effect. 3.21 (10) Wetlands. For purposes of this subdivision, 3.22 "wetlands" means: (i) land described in section 103G.005, 3.23 subdivision 18; (ii) land which is mostly under water, produces 3.24 little if any income, and has no use except for wildlife or 3.25 water conservation purposes, provided it is preserved in its 3.26 natural condition and drainage of it would be legal, feasible, 3.27 and economically practical for the production of livestock, 3.28 dairy animals, poultry, fruit, vegetables, forage and grains, 3.29 except wild rice; or (iii) land in a wetland preservation area 3.30 under sections 103F.612 to 103F.616. "Wetlands" under items (i) 3.31 and (ii) include adjacent land which is not suitable for 3.32 agricultural purposes due to the presence of the wetlands, but 3.33 do not include woody swamps containing shrubs or trees, wet 3.34 meadows, meandered water, streams, rivers, and floodplains or 3.35 river bottoms. Exemption of wetlands from taxation pursuant to 3.36 this section shall not grant the public any additional or 4.1 greater right of access to the wetlands or diminish any right of 4.2 ownership to the wetlands. 4.3 (11) Native prairie. The commissioner of the department of 4.4 natural resources shall determine lands in the state which are 4.5 native prairie and shall notify the county assessor of each 4.6 county in which the lands are located. Pasture land used for 4.7 livestock grazing purposes shall not be considered native 4.8 prairie for the purposes of this clause. Upon receipt of an 4.9 application for the exemption provided in this clause for lands 4.10 for which the assessor has no determination from the 4.11 commissioner of natural resources, the assessor shall refer the 4.12 application to the commissioner of natural resources who shall 4.13 determine within 30 days whether the land is native prairie and 4.14 notify the county assessor of the decision. Exemption of native 4.15 prairie pursuant to this clause shall not grant the public any 4.16 additional or greater right of access to the native prairie or 4.17 diminish any right of ownership to it. 4.18 (12) Property used in a continuous program to provide 4.19 emergency shelter for victims of domestic abuse, provided the 4.20 organization that owns and sponsors the shelter is exempt from 4.21 federal income taxation pursuant to section 501(c)(3) of the 4.22 Internal Revenue Code of 1986, as amended through December 31, 4.23 1992, notwithstanding the fact that the sponsoring organization 4.24 receives funding under section 8 of the United States Housing 4.25 Act of 1937, as amended. 4.26 (13) If approved by the governing body of the municipality 4.27 in which the property is located, property not exceeding one 4.28 acre which is owned and operated by any senior citizen group or 4.29 association of groups that in general limits membership to 4.30 persons age 55 or older and is organized and operated 4.31 exclusively for pleasure, recreation, and other nonprofit 4.32 purposes, no part of the net earnings of which inures to the 4.33 benefit of any private shareholders; provided the property is 4.34 used primarily as a clubhouse, meeting facility, or recreational 4.35 facility by the group or association and the property is not 4.36 used for residential purposes on either a temporary or permanent 5.1 basis. 5.2 (14) To the extent provided by section 295.44, real and 5.3 personal property used or to be used primarily for the 5.4 production of hydroelectric or hydromechanical power on a site 5.5 owned by the state or a local governmental unit which is 5.6 developed and operated pursuant to the provisions of section 5.7 103G.535. 5.8 (15) If approved by the governing body of the municipality 5.9 in which the property is located, and if construction is 5.10 commenced after June 30, 1983: 5.11 (a) a "direct satellite broadcasting facility" operated by 5.12 a corporation licensed by the federal communications commission 5.13 to provide direct satellite broadcasting services using direct 5.14 broadcast satellites operating in the 12-ghz. band; and 5.15 (b) a "fixed satellite regional or national program service 5.16 facility" operated by a corporation licensed by the federal 5.17 communications commission to provide fixed satellite-transmitted 5.18 regularly scheduled broadcasting services using satellites 5.19 operating in the 6-ghz. band. 5.20 An exemption provided by clause (15) shall apply for a period 5.21 not to exceed five years. When the facility no longer qualifies 5.22 for exemption, it shall be placed on the assessment rolls as 5.23 provided in subdivision 4. Before approving a tax exemption 5.24 pursuant to this paragraph, the governing body of the 5.25 municipality shall provide an opportunity to the members of the 5.26 county board of commissioners of the county in which the 5.27 facility is proposed to be located and the members of the school 5.28 board of the school district in which the facility is proposed 5.29 to be located to meet with the governing body. The governing 5.30 body shall present to the members of those boards its estimate 5.31 of the fiscal impact of the proposed property tax exemption. 5.32 The tax exemption shall not be approved by the governing body 5.33 until the county board of commissioners has presented its 5.34 written comment on the proposal to the governing body or 30 days 5.35 have passed from the date of the transmittal by the governing 5.36 body to the board of the information on the fiscal impact, 6.1 whichever occurs first. 6.2 (16) Real and personal property owned and operated by a 6.3 private, nonprofit corporation exempt from federal income 6.4 taxation pursuant to United States Code, title 26, section 6.5 501(c)(3), primarily used in the generation and distribution of 6.6 hot water for heating buildings and structures. 6.7 (17) Notwithstanding section 273.19, state lands that are 6.8 leased from the department of natural resources under section 6.9 92.46 and federal lands that are leased by individuals for 6.10 cottage and camp purposes. 6.11 (18) Electric power distribution lines and their 6.12 attachments and appurtenances, that are used primarily for 6.13 supplying electricity to farmers at retail. 6.14 (19) Transitional housing facilities. "Transitional 6.15 housing facility" means a facility that meets the following 6.16 requirements. (i) It provides temporary housing to individuals, 6.17 couples, or families. (ii) It has the purpose of reuniting 6.18 families and enabling parents or individuals to obtain 6.19 self-sufficiency, advance their education, get job training, or 6.20 become employed in jobs that provide a living wage. (iii) It 6.21 provides support services such as child care, work readiness 6.22 training, and career development counseling; and a 6.23 self-sufficiency program with periodic monitoring of each 6.24 resident's progress in completing the program's goals. (iv) It 6.25 provides services to a resident of the facility for at least 6.26 three months but no longer than three years, except residents 6.27 enrolled in an educational or vocational institution or job 6.28 training program. These residents may receive services during 6.29 the time they are enrolled but in no event longer than four 6.30 years. (v) It is owned and operated or under lease from a unit 6.31 of government or governmental agency under a property 6.32 disposition program and operated by one or more organizations 6.33 exempt from federal income tax under section 501(c)(3) of the 6.34 Internal Revenue Code of 1986, as amended through December 31, 6.35 1992. This exemption applies notwithstanding the fact that the 6.36 sponsoring organization receives financing by a direct federal 7.1 loan or federally insured loan or a loan made by the Minnesota 7.2 housing finance agency under the provisions of either Title II 7.3 of the National Housing Act or the Minnesota housing finance 7.4 agency law of 1971 or rules promulgated by the agency pursuant 7.5 to it, and notwithstanding the fact that the sponsoring 7.6 organization receives funding under Section 8 of the United 7.7 States Housing Act of 1937, as amended. 7.8 (20) Real and personal property, including leasehold or 7.9 other personal property interests, owned and operated by a 7.10 corporation if more than 50 percent of the total voting power of 7.11 the stock of the corporation is owned collectively by: (i) the 7.12 board of regents of the University of Minnesota, (ii) the 7.13 University of Minnesota Foundation, an organization exempt from 7.14 federal income taxation under section 501(c)(3) of the Internal 7.15 Revenue Code of 1986, as amended through December 31, 1992, and 7.16 (iii) a corporation organized under chapter 317A, which by its 7.17 articles of incorporation is prohibited from providing pecuniary 7.18 gain to any person or entity other than the regents of the 7.19 University of Minnesota; which property is used primarily to 7.20 manage or provide goods, services, or facilities utilizing or 7.21 relating to large-scale advanced scientific computing resources 7.22 to the regents of the University of Minnesota and others. 7.23 (21) Wind energy conversion systems, as defined in section 7.24 216C.06, subdivision 12, installed after January 1, 1991, and 7.25 used as an electric power source. 7.26 (22) Containment tanks, cache basins, and that portion of 7.27 the structure needed for the containment facility used to 7.28 confine agricultural chemicals as defined in section 18D.01, 7.29 subdivision 3, as required by the commissioner of agriculture 7.30 under chapter 18B or 18C. 7.31 (23) Photovoltaic devices, as defined in section 216C.06, 7.32 subdivision 13, installed after January 1, 1992, and used to 7.33 produce or store electric power. 7.34 (24) Real and personal property owned and operated by a 7.35 private, nonprofit corporation exempt from federal income 7.36 taxation pursuant to United States Code, title 26, section 8.1 501(c)(3), primarily used for an ice arena or ice rink, and used 8.2 primarily for youth and high school programs. 8.3 (25) A structure that is situated on real property that is 8.4 used for: 8.5 (i) housing for the elderly or for low- and moderate-income 8.6 families as defined in Title II of the National Housing Act, as 8.7 amended through December 31, 1990, and funded by a direct 8.8 federal loan or federally insured loan made pursuant to Title II 8.9 of the act; or 8.10 (ii) housing lower income families or elderly or 8.11 handicapped persons, as defined in section 8 of the United 8.12 States Housing Act of 1937, as amended. 8.13 In order for a structure to be exempt under (i) or (ii), it 8.14 must also meet each of the following criteria: 8.15 (A) is owned by an entity which is operated as a nonprofit 8.16 corporation organized under chapter 317A; 8.17 (B) is owned by an entity which has not entered into a 8.18 housing assistance payments contract under section 8 of the 8.19 United States Housing Act of 1937, or, if the entity which owns 8.20 the structure has entered into a housing assistance payments 8.21 contract under section 8 of the United States Housing Act of 8.22 1937, the contract provides assistance for less than 90 percent 8.23 of the dwelling units in the structure, excluding dwelling units 8.24 intended for management or maintenance personnel; 8.25 (C) operates an on-site congregate dining program in which 8.26 participation by residents is mandatory, and provides assisted 8.27 living or similar social and physical support services for 8.28 residents; and 8.29 (D) was not assessed and did not pay tax under chapter 273 8.30 prior to the 1991 levy, while meeting the other conditions of 8.31 this clause. 8.32 An exemption under this clause remains in effect for taxes 8.33 levied in each year or partial year of the term of its permanent 8.34 financing. 8.35 (26) Real and personal property that is located in the 8.36 Superior National Forest, and owned or leased and operated by a 9.1 nonprofit organization that is exempt from federal income 9.2 taxation under section 501(c)(3) of the Internal Revenue Code of 9.3 1986, as amended through December 31, 1992, and primarily used 9.4 to provide recreational opportunities for disabled veterans and 9.5 their families. 9.6 (27) Manure pits and appurtenances, which may include 9.7 slatted floors and pipes, installed or operated in accordance 9.8 with a permit, order, or certificate of compliance issued by the 9.9 Minnesota pollution control agency. The exemption shall 9.10 continue for as long as the permit, order, or certificate issued 9.11 by the Minnesota pollution control agency remains in effect. 9.12 (28) Notwithstanding clause (8), item (a), attached 9.13 machinery and other personal property which is part of a 9.14 facility containing a cogeneration system as described in 9.15 section 216B.166, subdivision 2, paragraph (a), if the 9.16 cogeneration system has met the following criteria: (i) the 9.17 system utilizes natural gas as a primary fuel and the 9.18 cogenerated steam initially replaces steam generated from 9.19 existing thermal boilers utilizing coal; (ii) the facility 9.20 developer is selected as a result of a procurement process 9.21 ordered by the public utilities commission; and (iii) 9.22 construction of the facility is commenced after July 1, 1994, 9.23 and before July 1, 1997. 9.24 (29) Real property acquired by a home rule charter city, 9.25 statutory city, county, town, or school district under a lease 9.26 purchase agreement or an installment purchase contract during 9.27 the term of the lease purchase agreement as long as and to the 9.28 extent that the property is used by the city, county, town, or 9.29 school district and devoted to a public use and to the extent it 9.30 is not subleased to any private individual, entity, association, 9.31 or corporation in connection with a business or enterprise 9.32 operated for profit. 9.33 Sec. 2. [EFFECTIVE DATE.] 9.34 Section 1 is effective for taxes levied in 1995, payable in 9.35 1996, and thereafter.