SF 1370

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:59am

A bill for an act
relating to charter schools; modifying the property tax status of certain charter
schools; amending Minnesota Statutes 2010, section 272.02, subdivision 42.

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

Section 1.

Minnesota Statutes 2010, section 272.02, subdivision 42, is amended to read:

Subd. 42.

Property leased to schools.

(a) 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 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.

(b) Property that is leased or rented to a charter school formed and operated under
section 124D.10 is exempt from taxation if it meets all of the following requirements:

(1) the lease is for a period of at least 12 consecutive months;

(2) deleted text begin the property is owned by (i) a nonprofit corporation or association exempt from
federal income tax under section 501(c)(2) or (3) of the Internal Revenue Code; (ii) a
public school district, college, or university; (iii) a private academy, college, university, or
seminary of learning; (iv) a church; or (v) the state or a political subdivision of the state;
deleted text end

deleted text begin (3) deleted text end the charter school must use the property to provide (i) direct instruction in any
grade from kindergarten through grade 12; (ii) special education for disabled children; or
(iii) administrative services directly related to the educational program at that site; and

deleted text begin (4) deleted text end new text begin (3) new text end except for lease provisions that allow for the shared use of the property by
(i) the charter school and another public or private school; (ii) the charter school and a
church; or (iii) the charter school and the state or a political subdivision of the state, the
lease must provide that the charter school has the exclusive right to use 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 2012 and
thereafter.
new text end