1.1 	A bill for an act
1.2 	relating to taxation; property; exempting from taxation the for-profit use of 
1.3 	certain tax-exempt airport property;amending Minnesota Statutes 2014, sections 
1.4 	272.01, subdivision 2; 273.19, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2014, section 272.01, subdivision 2, is amended to read:
1.7 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
1.8 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is 
1.9 	leased, loaned, or otherwise made available and used by a private individual, association, 
1.10 	or corporation in connection with a business conducted for profit, there shall be imposed a 
1.11 	tax, for the privilege of so using or possessing such real or personal property, in the same 
1.12 	amount and to the same extent as though the lessee or user was the owner of such property.
1.13 	(b) The tax imposed by this subdivision shall not apply to:
1.14 	(1) property leased or used as a concession in or relative to the use in whole 
1.15 	or part of a public park, market, fairgrounds, port authority, economic development 
1.16 	authority established under chapter 469, municipal auditorium, municipal parking facility, 
1.17 	municipal museum, or municipal stadium;
1.18 	(2) property of an airport owned by a city, town, county, or group thereof which is:
1.19 	(i) leased to or used by any person or entity including a fixed base operator; and
1.20 	(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 
1.21 	services, or facilities to the airport or general public;
1.22 	the exception from taxation provided in this clause does not apply to:
2.1 	(i) property located at an airport owned or operated by the Metropolitan Airports 
2.2 	Commission or by a city of over 50,000 population according to the most recent federal 
2.3 	census or such a city's airport authority; or
2.4 	(ii) hangars leased by a private individual, association, or corporation in connection 
2.5 	with a business conducted for profit other than an aviation-related business;
2.6 	(3) property constituting or used as a public pedestrian ramp or concourse in 
2.7 	connection with a public airport;
2.8 	(4) property constituting or used as a passenger check-in area or ticket sale counter, 
2.9 	boarding area, or luggage claim area in connection with a public airport but not the 
2.10 	airports owned or operated by the Metropolitan Airports Commission or cities of over 
2.11 	50,000 population or an airport authority therein. Real estate owned by a municipality 
2.12 	in connection with the operation of a public airport and leased or used for agricultural 
2.13 	purposes is not exempt;
2.14 	(5) property leased, loaned, or otherwise made available to a private individual, 
2.15 	corporation, or association under a cooperative farming agreement made pursuant to 
2.16 	section 97A.135; or
2.17 	(6) property leased, loaned, or otherwise made available to a private individual, 
2.18 	corporation, or association under section 272.68, subdivision 4.; or
2.19 	(7) electronic advertising signage leased from an airport owned by a city, town, 
2.20 	county, or group thereof which serves 400,000 or fewer passengers per year.
2.21 	(c) Taxes imposed by this subdivision are payable as in the case of personal property 
2.22 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
2.23 	manner as taxes assessed to owners of real or personal property, except that such taxes 
2.24 	shall not become a lien against the property. When due, the taxes shall constitute a debt due 
2.25 	from the lessee or user to the state, township, city, county, and school district for which the 
2.26 	taxes were assessed and shall be collected in the same manner as personal property taxes. 
2.27 	If property subject to the tax imposed by this subdivision is leased or used jointly by two or 
2.28 	more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
2.29 	(d) The tax on real property of the federal government, the state or any of its political 
2.30 	subdivisions that is leased, loaned, or otherwise made available to a private individual, 
2.31 	association, or corporation and becomes taxable under this subdivision or other provision 
2.32 	of law must be assessed and collected as a personal property assessment. The taxes do 
2.33 	not become a lien against the real property.

2.34 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2016.

2.35 	Sec. 2. Minnesota Statutes 2014, section 273.19, subdivision 1, is amended to read:
3.1 		Subdivision 1.Tax-exempt property; lease. Except as provided in subdivision 3 or 
3.2 	4, tax-exempt property held under a lease for a term of at least one year, and not taxable 
3.3 	under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be 
3.4 	considered, for all purposes of taxation, as the property of the person holding it. In this 
3.5 	subdivision, "tax-exempt property" means property owned by the United States, the state 
3.6 	or any of its political subdivisions, a school, or any religious, scientific, or benevolent 
3.7 	society or institution, incorporated or unincorporated, or any corporation whose property 
3.8 	is not taxed in the same manner as other property. This subdivision does not apply to 
3.9 	property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses 
3.10 	(2), (3), and (4), and (7), or to property exempt from taxation under section 272.0213.

3.11 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2016.