Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                         CHAPTER 239-S.F.No. 46 
           An act relating to taxation; exempting leased hangars 
          at airports in small cities from property taxation; 
          amending Minnesota Statutes 1988, sections 272.01, 
          subdivision 2; and 273.19, subdivision 1.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, section 272.01, 
subdivision 2, is amended to read: 
    Subd. 2.  (a) When any real or personal property which for 
any reason is exempt from ad valorem taxes, and taxes in lieu 
thereof, is leased, loaned, or otherwise made available and used 
by a private individual, association, or corporation in 
connection with a business conducted for profit, there shall be 
imposed a tax, for the privilege of so using or possessing such 
real or personal property, in the same amount and to the same 
extent as though the lessee or user was the owner of such 
property. 
    (b) The tax imposed by this subdivision shall not apply to: 
    (1) property leased or used by way of as a concession in or 
relative to the use in whole or part of a public park, market, 
fairgrounds, port authority, economic development authority 
established under chapter 458C, municipal auditorium, airport 
owned by a city, town, county, or group thereof but not the 
airports owned or operated by the metropolitan airports 
commission or a city of over 50,000 population or an airport 
authority therein, municipal museum, or municipal stadium or; 
    (2) property of an airport owned by a city, town, county, 
or group thereof which is:  
    (i) leased to or used by any person or entity including a 
fixed base operator; and 
    (ii) used as a hangar for the storage or repair of aircraft 
or to provide aviation goods, services, or facilities to the 
airport or general public; 
the exception from taxation provided in this clause does not 
apply to: 
    (i) property located at an airport owned or operated by the 
metropolitan airports commission or by a city of over 50,000 
population according to the most recent federal census or such a 
city's airport authority; or 
    (ii) hangars leased by a private individual, association, 
or corporation in connection with a business conducted for 
profit other than an aviation-related business; 
    (3) property constituting or used as a public pedestrian 
ramp or concourse in connection with a public airport; or 
    (3) (4) property constituting or used as a passenger 
check-in area or ticket sale counter, boarding area, or luggage 
claim area in connection with a public airport but not the 
airports owned or operated by the metropolitan airports 
commission or cities of over 50,000 population or an airport 
authority therein.  Real estate owned by a municipality in 
connection with the operation of a public airport and leased or 
used for agricultural purposes shall is not be exempt. 
    (c) Taxes imposed by this subdivision shall be due and are 
payable as in the case of personal property taxes and such taxes 
shall be assessed to such the lessees or users of real or 
personal property in the same manner as taxes assessed to owners 
of real or personal property, except that such taxes shall not 
become a lien against the property.  When due, the taxes shall 
constitute a debt due from the lessee or user to the state, 
township, city, county and school district for which the taxes 
were assessed and shall be collected in the same manner as 
personal property taxes.  If property subject to the tax imposed 
by this subdivision is leased or used jointly by two or more 
persons, each lessee or user shall be jointly and severally 
liable for payment of the tax. 
    Sec. 2.  Minnesota Statutes 1988, section 273.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  Except as provided in subdivision 3 or 4, 
tax-exempt property held under a lease for a term of at least 
one year, and not taxable under section 272.01, subdivision 2, 
or under a contract for the purchase thereof, when the property 
belongs to the United States, to the state, or to any religious, 
scientific, or benevolent society or institution, incorporated 
or unincorporated, or to any railroad company or other 
corporation whose property is not taxed in the same manner as 
other property, or when the property is school or other state 
lands, shall be considered, for all purposes of taxation, as the 
property of the person so holding the same it.  In this 
subdivision, "tax-exempt property" means property owned by the 
United States, the state, a school, or any religious, 
scientific, or benevolent society or institution, incorporated 
or unincorporated, or any corporation whose property is not 
taxed in the same manner as other property.  This subdivision 
does not apply to property exempt from taxation under section 
272.01, subdivision 2, clause paragraph (b), clauses (2), (3), 
and (4). 
    Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective for taxes levied in 1989, 
payable in 1990, and thereafter. 
    Presented to the governor May 22, 1989 
    Signed by the governor May 25, 1989, 5:22 p.m.