SF 1751

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

A bill for an act
relating to taxation; clarifying the treatment of
government housing payments for purpose of the
property tax exemption for charitable institutions;
amending Minnesota Statutes 2004, section 272.02,
subdivision 7.

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

Section 1.

Minnesota Statutes 2004, 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 deleted text begin except parcels
of property containing structures and the structures described
in section 273.13, subdivision 25, paragraph (e), other than
those that qualify for exemption under subdivision 26 deleted text end .

new text begin (b) In determining whether rental housing property is
exempt under this subdivision or under article XI, section 2, of
the Constitution as an institution of purely public charity,
government housing assistance payments are income, not gifts or
donations, to the owner or manager of the rental housing.
Receipt of government housing assistance payments does not
disqualify a rental housing property from qualifying for
exemption if the requirements under this subdivision, including
receipt of sufficient gifts and donations, are otherwise
satisfied.
new text end

new text begin (c) For purposes of this subdivision, government housing
assistance payments include:
new text end

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

new text begin (2) government financial assistance or tax credits
requiring units to be set aside for persons or families with
certain income or other characteristics, or limiting the rents,
or both.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for
taxes payable in 2006.
new text end