2007 Minnesota Statutes

469.040 TAX STATUS.
    Subdivision 1. Declaration, essential public and governmental purposes. The property
of an authority is public property used for essential public and governmental purposes. The
property and the authority shall be exempt from all real and personal property taxes of the city, the
county, the state, or any political subdivision thereof. "Taxes" does not include charges for special
assessments or for utilities and special services, such as heat, water, electricity, gas, sewage
disposal, or garbage removal. For purposes of this subdivision, "special services" means those
physical services provided to a project for which the actual cost of the governing body providing
the service can be calculated. When the obligations issued by an authority to assist in financing
the development of a project have been retired and federal contributions have been discontinued,
or the authority is no longer obligated by contracts with the federal government to maintain a
project as a low-income housing project, whichever is later, then the exemptions from taxes for
that project shall terminate.
    Subd. 2. Leased property, exception. Notwithstanding the provisions of subdivision 1, any
property other than property to be operated as a parking facility that the authority leases to private
individuals or corporations for development in connection with a redevelopment project shall have
the same tax status as if the leased property were owned by the private individuals or corporations.
    Subd. 3. Statement filed with assessor; percentage tax on rentals. Notwithstanding the
provisions of subdivision 1, after a housing project or a housing development project carried on
under sections 469.016 to 469.026 has become occupied, in whole or in part, an authority shall file
with the assessor, on or before April 15 of each year, a statement of the aggregate shelter rentals
of that project collected during the preceding calendar year. Unless a greater amount has been
agreed upon between the authority and the governing body or bodies for which the authority was
created, in whose jurisdiction the project is located, five percent of the aggregate shelter rentals
shall be charged to the authority as a service charge for the services and facilities to be furnished
with respect to that project. The service charge shall be collected from the authority in the manner
provided by law for the assessment and collection of taxes. The amount so collected shall be
distributed to the several taxing bodies in the same proportion as the tax rate of each bears to the
total tax rate of those taxing bodies. The governing body or bodies for which the authority has
been created, in whose jurisdiction the project is located, may agree with the authority for the
payment of a service charge for a housing project or a housing development project in an amount
greater than five percent of the aggregate annual shelter rentals of any project, upon the basis of
shelter rentals or upon another basis agreed upon. The service charge may not exceed the amount
which would be payable in taxes were the property not exempt. If such an agreement is made, the
service charge so agreed upon shall be collected and distributed in the manner above provided. If
the project has become occupied, or if the land upon which the project is to be constructed has
been acquired, the agreement shall specify the location of the project for which the agreement is
made. "Shelter rental" means the total rentals of a housing project exclusive of any charge for
utilities and special services such as heat, water, electricity, gas, sewage disposal, or garbage
removal. "Service charge" means payment in lieu of taxes. The records of each project shall be
open to inspection by the proper assessing officer.
    Subd. 4. Facilities funded from multiple sources. In the metropolitan area, as defined in
section 473.121, subdivision 2, the tax treatment provided in subdivision 3 applies to that portion
of any multifamily rental housing facility represented by the ratio of (1) the number of units in
the facility that are subject to the requirements of Section 5 of the United States Housing Act
of 1937, as the result of the implementation of a federal court order or consent decree to (2)
the total number of units within the facility.
The housing and redevelopment authority for the city in which the facility is located, any
public entity exercising the powers of such housing and redevelopment authority, or the county
housing and redevelopment authority for the county in which the facility is located, shall annually
certify to the assessor responsible for assessing the facility, at the time and in the manner required
by the assessor, the number of units in the facility that are subject to the requirements of Section
5 of the United States Housing Act of 1937.
Nothing in this subdivision shall prevent that portion of the facility not subject to this
subdivision from meeting the requirements of section 273.126, and for that purpose the total
number of units in the facility must be taken into account.
    Subd. 5. Designated housing corporation. (a) To the extent not exempt from taxation
under section 272.01, subdivision 1, property located within the exterior boundaries of an Indian
reservation in the state that is owned by the tribe's designated housing entity as defined in United
States Code, title 25, section 4103(21), and that is a housing project or a housing development
project, as defined in section 469.002, subdivisions 13 and 15, is exempt from all real and personal
property taxes of the city, the county, the state, or any political subdivision thereof.
(b) Property exempt from taxation under paragraph (a) is subject to subdivision 3. A copy of
those portions of the annual reports submitted on behalf of the housing entity to the Secretary of
the United States Department of Housing and Urban Development for the project that contain
information sufficient to determine the amount due under subdivision 3 satisfies the reporting
requirements of subdivision 3 for the project.
History: 1987 c 291 s 40; 1989 c 277 art 2 s 61; 1990 c 532 s 9,10; 1993 c 375 art 5
s 34; 1996 c 471 art 3 s 38; 1997 c 231 art 2 s 44; 2000 c 260 s 62; 2000 c 490 art 5 s 33;
1Sp2001 c 5 art 3 s 67