SF 2867

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting low-income housing 
  1.3             owned by a qualified nonprofit agency from property 
  1.4             taxation; exempting construction and rehabilitation of 
  1.5             low-income housing owned by a qualified nonprofit 
  1.6             agency from the sales tax; providing for payments in 
  1.7             lieu of taxes; amending Minnesota Statutes 2000, 
  1.8             section 272.02, by adding a subdivision; Minnesota 
  1.9             Statutes 2001 Supplement, section 297A.71, subdivision 
  1.10            23. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2000, section 272.02, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 50.  [LOW-INCOME HOUSING OWNED BY A QUALIFIED 
  1.15  NONPROFIT AGENCY.] Any property (i) owned by a nonprofit 
  1.16  corporation subject to the provisions of chapter 317A, and 
  1.17  qualifying under section 501(c)(3) or 501(c)(4) of the Internal 
  1.18  Revenue Code of 1986, as amended; (ii) used to provide rental 
  1.19  housing for persons or families with incomes less than 30 
  1.20  percent of area median income, as determined by the United 
  1.21  States Department of Housing and Urban Development, adjusted for 
  1.22  family size; and (iii) rented for an annual amount that does not 
  1.23  exceed nine percent of area median income, adjusted for family 
  1.24  size, is exempt from all taxes and special assessments of the 
  1.25  city, the county, the state, or any political subdivision of the 
  1.26  state in the same manner as property referred to in section 
  1.27  469.040, subdivision 1.  For purposes of this subdivision, 
  1.28  "rent" includes one-half of any additional amounts the occupants 
  2.1   must pay for heat, water, electricity, gas, sewage disposal, or 
  2.2   garbage removal.  Payments in lieu of taxes for the property 
  2.3   must be made as provided in section 469.040, subdivision 3, 
  2.4   according to the procedures specified in that subdivision.  A 
  2.5   property qualifying for exemption under this section continues 
  2.6   to qualify for up to two years after qualification would 
  2.7   otherwise cease due to a tenant's income exceeding the limit 
  2.8   prescribed, if the property continues to be occupied by the same 
  2.9   tenant.  Owners of property qualifying for exemption under this 
  2.10  section must file an annual statement with the assessor 
  2.11  validating the claim for exemption, along with whatever 
  2.12  supporting information the assessor requires. 
  2.13     [EFFECTIVE DATE.] This section is effective for taxes 
  2.14  payable in 2003 and subsequent years. 
  2.15     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.16  297A.71, subdivision 23, is amended to read: 
  2.17     Subd. 23.  [CONSTRUCTION MATERIALS FOR QUALIFIED LOW-INCOME 
  2.18  HOUSING PROJECTS.] (a) Purchases of materials and supplies used 
  2.19  or consumed in and equipment incorporated into the construction, 
  2.20  improvement, or expansion of qualified low-income housing 
  2.21  projects are exempt from the tax imposed under this chapter if 
  2.22  the owner of the qualified low-income housing project is: 
  2.23     (1) the public housing agency or housing and redevelopment 
  2.24  authority of a political subdivision; 
  2.25     (2) an entity exercising the powers of a housing and 
  2.26  redevelopment authority within a political subdivision; 
  2.27     (3) a limited partnership in which the sole general partner 
  2.28  is an authority under clause (1) or an entity under clause (2); 
  2.29  or 
  2.30     (4) a nonprofit corporation subject to the provisions of 
  2.31  chapter 317A, and qualifying under section 501(c)(3) or 
  2.32  501(c)(4) of the Internal Revenue Code of 1986, as amended. 
  2.33     This exemption applies regardless of whether the purchases 
  2.34  are made by the owner of the facility or a contractor.  
  2.35     (b) For purposes of this exemption, "qualified low-income 
  2.36  housing project" means: 
  3.1      (1) a housing or mixed use project in which at least 20 
  3.2   percent of the residential units are qualifying low-income 
  3.3   rental housing units as defined in section 273.126; 
  3.4      (2) a federally assisted low-income housing project 
  3.5   financed by a mortgage insured or held by the United States 
  3.6   Department of Housing and Urban Development under United States 
  3.7   Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 
  3.8   1715z-1; United States Code, title 42, section 1437f; the Native 
  3.9   American Housing Assistance and Self-Determination Act, United 
  3.10  States Code, title 25, section 4101 et seq.; or any similar 
  3.11  successor federal low-income housing program; 
  3.12     (3) a qualified low-income housing project as defined in 
  3.13  United States Code, title 26, section 42(g), meeting all of the 
  3.14  requirements for a low-income housing credit under section 42 of 
  3.15  the Internal Revenue Code regardless of whether the project 
  3.16  actually applies for or receives a low-income housing credit; or 
  3.17     (4) a project that will be operated in compliance with 
  3.18  Internal Revenue Service revenue procedure 96-32; or 
  3.19     (5) a project that is described in section 272.02, 
  3.20  subdivision 50. 
  3.21     [EFFECTIVE DATE.] This section is effective for sales or 
  3.22  purchases made on or after July 1, 2001.