SF 1683

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

A bill for an act
relating to taxation; providing that certain elderly
living facilities are exempt from the property tax;
amending Minnesota Statutes 2004, section 272.02, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 272.02, is
amended by adding a subdivision to read:

new text begin Subd. 68. new text end

new text begin Qualified elderly living facility. new text end

new text begin An elderly
living facility is exempt from taxation if it meets all of the
following requirements:
new text end

new text begin (1) the facility is located in a city of the first class
with a population of more than 350,000;
new text end

new text begin (2) the facility is owned and operated by a nonprofit
corporation organized under chapter 317A or by a limited
liability company formed under chapter 322B, the sole member of
which is a nonprofit corporation organized under chapter 317A;
new text end

new text begin (3) the facility consists of no more than 60 living units;
new text end

new text begin (4) the owner of the facility is an affiliate of entities
that own and operate assisted living and skilled nursing
facilities that:
new text end

new text begin (i) are located across a street from the facility;
new text end

new text begin (ii) are adjacent to a church that is exempt from taxation
under subdivision 6;
new text end

new text begin (iii) include a congregate dining program; and
new text end

new text begin (iv) provide assisted living or similar social and physical
support;
new text end

new text begin (5) the residents of the facility must be:
new text end

new text begin (i) at least 62 years of age; or
new text end

new text begin (ii) handicapped; and
new text end

new text begin (6) at least 20 percent of the units in the facility are
occupied by persons whose annual income does not exceed 50
percent of median family income for the area or, in the
alternative, 40 percent of the units in the facility are
occupied by persons whose annual income does not exceed 60
percent of median family income for the area.
new text end

new text begin For purposes of this subdivision, "affiliate" means any
entity directly or indirectly controlling or controlled by or
under direct or indirect common control with an entity. For
this purpose, "control" means the power to direct management and
policies through membership or ownership of voting securities.
new text end

new text begin The property is exempt under this subdivision for taxes
levied in each year or partial year of the term of the
facility's initial permanent financing or 25 years, whichever is
later.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
levied in 2005, payable in 2006, and thereafter.
new text end