1.1 	A bill for an act
1.2 	relating to taxation; providing that certain elderly
1.3 	living facilities are exempt from the property tax;
1.4 	amending Minnesota Statutes 2004, section 272.02, by
1.5 	adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 272.02, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 68.Qualified elderly living facility. An elderly
1.10 	living facility is exempt from taxation if it meets all of the
1.11 	following requirements:
1.12 	(1) the facility is located in a city of the first class
1.13 	with a population of more than 350,000;
1.14 	(2) the facility is owned and operated by a nonprofit
1.15 	corporation organized under chapter 317A or by a limited
1.16 	liability company formed under chapter 322B, the sole member of
1.17 	which is a nonprofit corporation organized under chapter 317A;
1.18 	(3) the facility consists of no more than 60 living units;
1.19 	(4) the owner of the facility is an affiliate of entities
1.20 	that own and operate assisted living and skilled nursing
1.21 	facilities that:
1.22 	(i) are located across a street from the facility;
1.23 	(ii) are adjacent to a church that is exempt from taxation
1.24 	under subdivision 6;
1.25 	(iii) include a congregate dining program; and 
2.1 	(iv) provide assisted living or similar social and physical
2.2 	support;
2.3 	(5) the residents of the facility must be:
2.4 	(i) at least 62 years of age; or 
2.5 	(ii) handicapped; and 
2.6 	(6) at least 20 percent of the units in the facility are
2.7 	occupied by persons whose annual income does not exceed 50
2.8 	percent of median family income for the area or, in the
2.9 	alternative, 40 percent of the units in the facility are
2.10 	occupied by persons whose annual income does not exceed 60
2.11 	percent of median family income for the area.
2.12 	For purposes of this subdivision, "affiliate" means any
2.13 	entity directly or indirectly controlling or controlled by or
2.14 	under direct or indirect common control with an entity.  For
2.15 	this purpose, "control" means the power to direct management and
2.16 	policies through membership or ownership of voting securities.
2.17 	The property is exempt under this subdivision for taxes
2.18 	levied in each year or partial year of the term of the
2.19 	facility's initial permanent financing or 25 years, whichever is
2.20 	later.
2.21 	
EFFECTIVE DATE. This section is effective for taxes
2.22 	levied in 2005, payable in 2006, and thereafter.