Bill Text: MN HF3336 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Property tax exemption created for property used to provide services to school district employees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-04-03 - Introduction and first reading, referred to Taxes [HF3336 Detail]
Download: Minnesota-2013-HF3336-Introduced.html
1.2relating to taxation; property; exempting certain property used to provide services
1.3to school district employees from taxation;amending Minnesota Statutes 2012,
1.4section 272.02, subdivision 42; Minnesota Statutes 2013 Supplement, section
1.5272.01, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2013 Supplement, section 272.01, subdivision 2, is
1.8amended to read:
1.9 Subd. 2. Exempt property used by private entity for profit. (a) When any real or
1.10personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
1.11leased, loaned, or otherwise made available and used by a private individual, association,
1.12or corporation in connection with a business conducted for profit, there shall be imposed a
1.13tax, for the privilege of so using or possessing such real or personal property, in the same
1.14amount and to the same extent as though the lessee or user was the owner of such property.
1.15 (b) The tax imposed by this subdivision shall not apply to:
1.16 (1) property leased or used as a concession in or relative to the use in whole
1.17or part of a public park, market, fairgrounds, port authority, economic development
1.18authority established under chapter 469, municipal auditorium, municipal parking facility,
1.19municipal museum, or municipal stadium;
1.20 (2) property of an airport owned by a city, town, county, or group thereof which is:
1.21 (i) leased to or used by any person or entity including a fixed base operator; and
1.22 (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
1.23services, or facilities to the airport or general public;
1.24the 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
2.2Commission or by a city of over 50,000 population according to the most recent federal
2.3census or such a city's airport authority; or
2.4 (ii) hangars leased by a private individual, association, or corporation in connection
2.5with 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
2.7connection with a public airport;
2.8 (4) property constituting or used as a passenger check-in area or ticket sale counter,
2.9boarding area, or luggage claim area in connection with a public airport but not the
2.10airports owned or operated by the Metropolitan Airports Commission or cities of over
2.1150,000 population or an airport authority therein. Real estate owned by a municipality
2.12in connection with the operation of a public airport and leased or used for agricultural
2.13purposes is not exempt;
2.14 (5) property leased, loaned, or otherwise made available to a private individual,
2.15corporation, or association under a cooperative farming agreement made pursuant to
2.16section97A.135 ; or
2.17 (6) property leased, loaned, or otherwise made available to a private individual,
2.18corporation, or association under section272.68, subdivision 4; or
2.19 (7) property owned by a school district and leased for use as a medical clinic serving
2.20employees of the district.
2.21 (c) Taxes imposed by this subdivision are payable as in the case of personal property
2.22taxes and shall be assessed to the lessees or users of real or personal property in the same
2.23manner as taxes assessed to owners of real or personal property, except that such taxes
2.24shall not become a lien against the property. When due, the taxes shall constitute a debt due
2.25from the lessee or user to the state, township, city, county, and school district for which the
2.26taxes were assessed and shall be collected in the same manner as personal property taxes.
2.27If property subject to the tax imposed by this subdivision is leased or used jointly by two or
2.28more 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
2.30subdivisions that is leased, loaned, or otherwise made available to a private individual,
2.31association, or corporation and becomes taxable under this subdivision or other provision
2.32of law must be assessed and collected as a personal property assessment. The taxes do
2.33not become a lien against the real property.
2.34EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
2.35 Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 42, is amended to read:
3.1 Subd. 42. Property leased to schools. (a) Property that is leased or rented to a
3.2school district is exempt from taxation if it meets the following requirements:
3.3 (1) the lease must be for a period of at least 12 consecutive months;
3.4 (2) the terms of the lease must require the school district to pay a nominal
3.5consideration for use of the building;
3.6 (3) the school district must use the property to provide (i) direct instruction in any
3.7grade from kindergarten through grade 12; (ii) special education for disabled children; (iii)
3.8adult basic education as described in section124D.52 ; (iv) preschool and early childhood
3.9family education; (v) services to employees of the school district; or (vi) community
3.10education programs, including provision of administrative services directly related to
3.11the educational program at that site; and
3.12 (4) the lease must provide that the school district has the exclusive use of the
3.13property during the lease period.
3.14 (b) Property that is leased or rented to a charter school formed and operated under
3.15section124D.10 is exempt from taxation if it meets all of the following requirements:
3.16 (1) the lease is for a period of at least 12 consecutive months;
3.17 (2) the property is owned by (i) a nonprofit corporation or association exempt from
3.18federal income tax under section 501(c)(2) or (3) of the Internal Revenue Code; (ii) a
3.19public school district, college, or university; (iii) a private academy, college, university, or
3.20seminary of learning; (iv) a church; or (v) the state or a political subdivision of the state;
3.21 (3) the charter school must use the property to provide (i) direct instruction in any
3.22grade from kindergarten through grade 12; (ii) special education for disabled children; or
3.23(iii) administrative services directly related to the educational program at that site; and
3.24 (4) except for lease provisions that allow for the shared use of the property by (i)
3.25the charter school and another public or private school; (ii) the charter school and a
3.26church; or (iii) the charter school and the state or a political subdivision of the state, the
3.27lease must provide that the charter school has the exclusive right to use the property
3.28during the lease period.
3.29EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
1.3to school district employees from taxation;amending Minnesota Statutes 2012,
1.4section 272.02, subdivision 42; Minnesota Statutes 2013 Supplement, section
1.5272.01, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2013 Supplement, section 272.01, subdivision 2, is
1.8amended to read:
1.9 Subd. 2. Exempt property used by private entity for profit. (a) When any real or
1.10personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
1.11leased, loaned, or otherwise made available and used by a private individual, association,
1.12or corporation in connection with a business conducted for profit, there shall be imposed a
1.13tax, for the privilege of so using or possessing such real or personal property, in the same
1.14amount and to the same extent as though the lessee or user was the owner of such property.
1.15 (b) The tax imposed by this subdivision shall not apply to:
1.16 (1) property leased or used as a concession in or relative to the use in whole
1.17or part of a public park, market, fairgrounds, port authority, economic development
1.18authority established under chapter 469, municipal auditorium, municipal parking facility,
1.19municipal museum, or municipal stadium;
1.20 (2) property of an airport owned by a city, town, county, or group thereof which is:
1.21 (i) leased to or used by any person or entity including a fixed base operator; and
1.22 (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
1.23services, or facilities to the airport or general public;
1.24the 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
2.2Commission or by a city of over 50,000 population according to the most recent federal
2.3census or such a city's airport authority; or
2.4 (ii) hangars leased by a private individual, association, or corporation in connection
2.5with 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
2.7connection with a public airport;
2.8 (4) property constituting or used as a passenger check-in area or ticket sale counter,
2.9boarding area, or luggage claim area in connection with a public airport but not the
2.10airports owned or operated by the Metropolitan Airports Commission or cities of over
2.1150,000 population or an airport authority therein. Real estate owned by a municipality
2.12in connection with the operation of a public airport and leased or used for agricultural
2.13purposes is not exempt;
2.14 (5) property leased, loaned, or otherwise made available to a private individual,
2.15corporation, or association under a cooperative farming agreement made pursuant to
2.16section
2.17 (6) property leased, loaned, or otherwise made available to a private individual,
2.18corporation, or association under section
2.20employees of the district.
2.21 (c) Taxes imposed by this subdivision are payable as in the case of personal property
2.22taxes and shall be assessed to the lessees or users of real or personal property in the same
2.23manner as taxes assessed to owners of real or personal property, except that such taxes
2.24shall not become a lien against the property. When due, the taxes shall constitute a debt due
2.25from the lessee or user to the state, township, city, county, and school district for which the
2.26taxes were assessed and shall be collected in the same manner as personal property taxes.
2.27If property subject to the tax imposed by this subdivision is leased or used jointly by two or
2.28more 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
2.30subdivisions that is leased, loaned, or otherwise made available to a private individual,
2.31association, or corporation and becomes taxable under this subdivision or other provision
2.32of law must be assessed and collected as a personal property assessment. The taxes do
2.33not become a lien against the real property.
2.34EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
2.35 Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 42, is amended to read:
3.1 Subd. 42. Property leased to schools. (a) Property that is leased or rented to a
3.2school district is exempt from taxation if it meets the following requirements:
3.3 (1) the lease must be for a period of at least 12 consecutive months;
3.4 (2) the terms of the lease must require the school district to pay a nominal
3.5consideration for use of the building;
3.6 (3) the school district must use the property to provide (i) direct instruction in any
3.7grade from kindergarten through grade 12; (ii) special education for disabled children; (iii)
3.8adult basic education as described in section
3.9family education; (v) services to employees of the school district; or (vi) community
3.10education programs, including provision of administrative services directly related to
3.11the educational program at that site; and
3.12 (4) the lease must provide that the school district has the exclusive use of the
3.13property during the lease period.
3.14 (b) Property that is leased or rented to a charter school formed and operated under
3.15section
3.16 (1) the lease is for a period of at least 12 consecutive months;
3.17 (2) the property is owned by (i) a nonprofit corporation or association exempt from
3.18federal income tax under section 501(c)(2) or (3) of the Internal Revenue Code; (ii) a
3.19public school district, college, or university; (iii) a private academy, college, university, or
3.20seminary of learning; (iv) a church; or (v) the state or a political subdivision of the state;
3.21 (3) the charter school must use the property to provide (i) direct instruction in any
3.22grade from kindergarten through grade 12; (ii) special education for disabled children; or
3.23(iii) administrative services directly related to the educational program at that site; and
3.24 (4) except for lease provisions that allow for the shared use of the property by (i)
3.25the charter school and another public or private school; (ii) the charter school and a
3.26church; or (iii) the charter school and the state or a political subdivision of the state, the
3.27lease must provide that the charter school has the exclusive right to use the property
3.28during the lease period.
3.29EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
