Bill Text: MN HF629 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Nonprofit community-service organization expenditures allowed to be considered charitable contributions to qualify for a reduced property tax classification.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-02-22 - Referred by Chair to Property and Local Tax Division [HF629 Detail]
Download: Minnesota-2011-HF629-Introduced.html
1.2relating to property taxation; allowing certain expenditures by nonprofit
1.3community-service organizations to be considered charitable contributions to
1.4qualify for a reduced property tax classification;amending Minnesota Statutes
1.52010, section 273.13, subdivision 25.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:
1.8 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
1.9units and used or held for use by the owner or by the tenants or lessees of the owner
1.10as a residence for rental periods of 30 days or more, excluding property qualifying for
1.11class 4d. Class 4a also includes hospitals licensed under sections144.50 to
144.56 , other
1.12than hospitals exempt under section272.02 , and contiguous property used for hospital
1.13purposes, without regard to whether the property has been platted or subdivided. The
1.14market value of class 4a property has a class rate of 1.25 percent.
1.15 (b) Class 4b includes:
1.16 (1) residential real estate containing less than four units that does not qualify as class
1.174bb, other than seasonal residential recreational property;
1.18 (2) manufactured homes not classified under any other provision;
1.19 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
1.20farm classified under subdivision 23, paragraph (b) containing two or three units; and
1.21 (4) unimproved property that is classified residential as determined under subdivision
1.2233.
1.23 The market value of class 4b property has a class rate of 1.25 percent.
1.24 (c) Class 4bb includes:
2.1 (1) nonhomestead residential real estate containing one unit, other than seasonal
2.2residential recreational property; and
2.3 (2) a single family dwelling, garage, and surrounding one acre of property on a
2.4nonhomestead farm classified under subdivision 23, paragraph (b).
2.5 Class 4bb property has the same class rates as class 1a property under subdivision 22.
2.6 Property that has been classified as seasonal residential recreational property at
2.7any time during which it has been owned by the current owner or spouse of the current
2.8owner does not qualify for class 4bb.
2.9 (d) Class 4c property includes:
2.10 (1) except as provided in subdivision 22, paragraph (c), real and personal property
2.11devoted to temporary and seasonal residential occupancy for recreation purposes,
2.12including real and personal property devoted to temporary and seasonal residential
2.13occupancy for recreation purposes and not devoted to commercial purposes for more
2.14than 250 days in the year preceding the year of assessment. For purposes of this clause,
2.15property is devoted to a commercial purpose on a specific day if any portion of the
2.16property is used for residential occupancy, and a fee is charged for residential occupancy.
2.17Class 4c property under this clause must contain three or more rental units. A "rental unit"
2.18is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
2.19equipped with water and electrical hookups for recreational vehicles. Class 4c property
2.20under this clause must provide recreational activities such as renting ice fishing houses,
2.21boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
2.22services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
2.23offered for rent by a property that otherwise qualifies for class 4c under this clause is also
2.24class 4c under this clause regardless of the term of the rental agreement, as long as the use
2.25of the camping pad does not exceed 250 days. In order for a property to be classified as
2.26class 4c, seasonal residential recreational for commercial purposes under this clause, at
2.27least 40 percent of the annual gross lodging receipts related to the property must be from
2.28business conducted during 90 consecutive days and either (i) at least 60 percent of all paid
2.29bookings by lodging guests during the year must be for periods of at least two consecutive
2.30nights; or (ii) at least 20 percent of the annual gross receipts must be from charges for
2.31rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski
2.32equipment, or charges for marina services, launch services, and guide services, or the
2.33sale of bait and fishing tackle. For purposes of this determination, a paid booking of
2.34five or more nights shall be counted as two bookings. Class 4c property classified under
2.35this clause also includes commercial use real property used exclusively for recreational
2.36purposes in conjunction with other class 4c property classified under this clause and
3.1devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
3.2total of two acres, provided the property is not devoted to commercial recreational use for
3.3more than 250 days in the year preceding the year of assessment and is located within two
3.4miles of the class 4c property with which it is used. Owners of real and personal property
3.5devoted to temporary and seasonal residential occupancy for recreation purposes and all
3.6or a portion of which was devoted to commercial purposes for not more than 250 days in
3.7the year preceding the year of assessment desiring classification as class 4c, must submit a
3.8declaration to the assessor designating the cabins or units occupied for 250 days or less in
3.9the year preceding the year of assessment by January 15 of the assessment year. Those
3.10cabins or units and a proportionate share of the land on which they are located must
3.11be designated class 4c under this clause as otherwise provided. The remainder of the
3.12cabins or units and a proportionate share of the land on which they are located will be
3.13designated as class 3a. The owner of property desiring designation as class 4c property
3.14under this clause must provide guest registers or other records demonstrating that the units
3.15for which class 4c designation is sought were not occupied for more than 250 days in the
3.16year preceding the assessment if so requested. The portion of a property operated as a
3.17(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
3.18nonresidential facility operated on a commercial basis not directly related to temporary
3.19and seasonal residential occupancy for recreation purposes does not qualify for class 4c;
3.20 (2) qualified property used as a golf course if:
3.21 (i) it is open to the public on a daily fee basis. It may charge membership fees or
3.22dues, but a membership fee may not be required in order to use the property for golfing,
3.23and its green fees for golfing must be comparable to green fees typically charged by
3.24municipal courses; and
3.25 (ii) it meets the requirements of section273.112, subdivision 3 , paragraph (d).
3.26 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
3.27with the golf course is classified as class 3a property;
3.28 (3) real property up to a maximum of three acres of land owned and used by a
3.29nonprofit community service oriented organization and not used for residential purposes
3.30on either a temporary or permanent basis, provided that:
3.31 (i) the property is not used for a revenue-producing activity for more than six days
3.32in the calendar year preceding the year of assessment; or
3.33 (ii) the organization makes annual charitable contributionsand donations at least
3.34equal to the property's previous year's property taxes and the property is allowed to be
3.35used for public and community meetings or events for no charge, as appropriate to the
3.36size of the facility.
4.1 For purposes of this clause,
4.2 (A) "charitablecontributions and donations contribution" has the same meaning
4.3aslawful gambling purposes under section
349.12, subdivision 25, excluding those
4.4purposes relating to the payment of taxes, assessments, fees, auditing costs, and utility
4.5payments given in section 349.12, subdivision 7a, except that expenditures for erection or
4.6acquisition of a replacement building, as defined under section 349.12, subdivision 25,
4.7paragraph (a), clause (25), may be counted to meet up to 50 percent of the contribution
4.8requirement, for a period of not more than 20 years from the erection or acquisition of
4.9the replacement building;
4.10 (B) "property taxes" excludes the state general tax;
4.11 (C) a "nonprofit community service oriented organization" means any corporation,
4.12society, association, foundation, or institution organized and operated exclusively for
4.13charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
4.14federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
4.15Revenue Code; and
4.16 (D) "revenue-producing activities" shall include but not be limited to property or that
4.17portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
4.18liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
4.19alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
4.20insurance business, or office or other space leased or rented to a lessee who conducts a
4.21for-profit enterprise on the premises.
4.22Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
4.23of the property for social events open exclusively to members and their guests for periods
4.24of less than 24 hours, when an admission is not charged nor any revenues are received by
4.25the organization shall not be considered a revenue-producing activity.
4.26 The organization shall maintain records of its charitable contributionsand donations
4.27and of public meetings and events held on the property and make them available upon
4.28request any time to the assessor to ensure eligibility. An organization meeting the
4.29requirement under item (ii) must file an application by May 1 with the assessor for
4.30eligibility for the current year's assessment. The commissioner shall prescribe a uniform
4.31application form and instructions;
4.32 (4) postsecondary student housing of not more than one acre of land that is owned by
4.33a nonprofit corporation organized under chapter 317A and is used exclusively by a student
4.34cooperative, sorority, or fraternity for on-campus housing or housing located within two
4.35miles of the border of a college campus;
5.1 (5) (i) manufactured home parks as defined in section327.14, subdivision 3 ,
5.2excluding manufactured home parks described in section273.124, subdivision 3a , and (ii)
5.3manufactured home parks as defined in section327.14, subdivision 3 , that are described in
5.4section273.124, subdivision 3a ;
5.5 (6) real property that is actively and exclusively devoted to indoor fitness, health,
5.6social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
5.7and is located within the metropolitan area as defined in section473.121, subdivision 2 ;
5.8 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
5.9under section272.01, subdivision 2 , and the land on which it is located, provided that:
5.10 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
5.11Airports Commission, or group thereof; and
5.12 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
5.13leased premise, prohibits commercial activity performed at the hangar.
5.14 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
5.15be filed by the new owner with the assessor of the county where the property is located
5.16within 60 days of the sale;
5.17 (8) a privately owned noncommercial aircraft storage hangar not exempt under
5.18section272.01, subdivision 2 , and the land on which it is located, provided that:
5.19 (i) the land abuts a public airport; and
5.20 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
5.21agreement restricting the use of the premises, prohibiting commercial use or activity
5.22performed at the hangar; and
5.23 (9) residential real estate, a portion of which is used by the owner for homestead
5.24purposes, and that is also a place of lodging, if all of the following criteria are met:
5.25 (i) rooms are provided for rent to transient guests that generally stay for periods
5.26of 14 or fewer days;
5.27 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
5.28in the basic room rate;
5.29 (iii) meals are not provided to the general public except for special events on fewer
5.30than seven days in the calendar year preceding the year of the assessment; and
5.31 (iv) the owner is the operator of the property.
5.32The market value subject to the 4c classification under this clause is limited to five rental
5.33units. Any rental units on the property in excess of five, must be valued and assessed as
5.34class 3a. The portion of the property used for purposes of a homestead by the owner must
5.35be classified as class 1a property under subdivision 22;
6.1 (10) real property up to a maximum of three acres and operated as a restaurant
6.2as defined under section157.15, subdivision 12 , provided it: (A) is located on a lake
6.3as defined under section103G.005, subdivision 15 , paragraph (a), clause (3); and (B)
6.4is either devoted to commercial purposes for not more than 250 consecutive days, or
6.5receives at least 60 percent of its annual gross receipts from business conducted during
6.6four consecutive months. Gross receipts from the sale of alcoholic beverages must be
6.7included in determining the property's qualification under subitem (B). The property's
6.8primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
6.9sales located on the premises must be excluded. Owners of real property desiring 4c
6.10classification under this clause must submit an annual declaration to the assessor by
6.11February 1 of the current assessment year, based on the property's relevant information for
6.12the preceding assessment year; and
6.13(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
6.14as a marina, as defined in section86A.20, subdivision 5 , which is made accessible to
6.15the public and devoted to recreational use for marina services. The marina owner must
6.16annually provide evidence to the assessor that it provides services, including lake or river
6.17access to the public by means of an access ramp or other facility that is either located on
6.18the property of the marina or at a publicly owned site that abuts the property of the marina.
6.19No more than 800 feet of lakeshore may be included in this classification. Buildings used
6.20in conjunction with a marina for marina services, including but not limited to buildings
6.21used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
6.22tackle, are classified as class 3a property.
6.23 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
6.24parcel of seasonal residential recreational property not used for commercial purposes
6.25has the same class rates as class 4bb property, (ii) manufactured home parks assessed
6.26under clause (5), item (i), have the same class rate as class 4b property, and the market
6.27value of manufactured home parks assessed under clause (5), item (ii), has the same class
6.28rate as class 4d property if more than 50 percent of the lots in the park are occupied by
6.29shareholders in the cooperative corporation or association and a class rate of one percent if
6.3050 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
6.31recreational property and marina recreational land as described in clause (11), has a
6.32class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
6.33remaining market value, (iv) the market value of property described in clause (4) has a
6.34class rate of one percent, (v) the market value of property described in clauses (2), (6), and
6.35(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
6.36in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
7.1 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
7.2by the Housing Finance Agency under section273.128, subdivision 3 . If only a portion
7.3of the units in the building qualify as low-income rental housing units as certified under
7.4section273.128, subdivision 3 , only the proportion of qualifying units to the total number
7.5of units in the building qualify for class 4d. The remaining portion of the building shall be
7.6classified by the assessor based upon its use. Class 4d also includes the same proportion of
7.7land as the qualifying low-income rental housing units are to the total units in the building.
7.8For all properties qualifying as class 4d, the market value determined by the assessor must
7.9be based on the normal approach to value using normal unrestricted rents.
7.10 Class 4d property has a class rate of 0.75 percent.
7.11EFFECTIVE DATE.This section is effective for assessment year 2011 and
7.12thereafter, for taxes payable in 2012 and thereafter.
1.3community-service organizations to be considered charitable contributions to
1.4qualify for a reduced property tax classification;amending Minnesota Statutes
1.52010, section 273.13, subdivision 25.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:
1.8 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
1.9units and used or held for use by the owner or by the tenants or lessees of the owner
1.10as a residence for rental periods of 30 days or more, excluding property qualifying for
1.11class 4d. Class 4a also includes hospitals licensed under sections
1.12than hospitals exempt under section
1.13purposes, without regard to whether the property has been platted or subdivided. The
1.14market value of class 4a property has a class rate of 1.25 percent.
1.15 (b) Class 4b includes:
1.16 (1) residential real estate containing less than four units that does not qualify as class
1.174bb, other than seasonal residential recreational property;
1.18 (2) manufactured homes not classified under any other provision;
1.19 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
1.20farm classified under subdivision 23, paragraph (b) containing two or three units; and
1.21 (4) unimproved property that is classified residential as determined under subdivision
1.2233.
1.23 The market value of class 4b property has a class rate of 1.25 percent.
1.24 (c) Class 4bb includes:
2.1 (1) nonhomestead residential real estate containing one unit, other than seasonal
2.2residential recreational property; and
2.3 (2) a single family dwelling, garage, and surrounding one acre of property on a
2.4nonhomestead farm classified under subdivision 23, paragraph (b).
2.5 Class 4bb property has the same class rates as class 1a property under subdivision 22.
2.6 Property that has been classified as seasonal residential recreational property at
2.7any time during which it has been owned by the current owner or spouse of the current
2.8owner does not qualify for class 4bb.
2.9 (d) Class 4c property includes:
2.10 (1) except as provided in subdivision 22, paragraph (c), real and personal property
2.11devoted to temporary and seasonal residential occupancy for recreation purposes,
2.12including real and personal property devoted to temporary and seasonal residential
2.13occupancy for recreation purposes and not devoted to commercial purposes for more
2.14than 250 days in the year preceding the year of assessment. For purposes of this clause,
2.15property is devoted to a commercial purpose on a specific day if any portion of the
2.16property is used for residential occupancy, and a fee is charged for residential occupancy.
2.17Class 4c property under this clause must contain three or more rental units. A "rental unit"
2.18is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
2.19equipped with water and electrical hookups for recreational vehicles. Class 4c property
2.20under this clause must provide recreational activities such as renting ice fishing houses,
2.21boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
2.22services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
2.23offered for rent by a property that otherwise qualifies for class 4c under this clause is also
2.24class 4c under this clause regardless of the term of the rental agreement, as long as the use
2.25of the camping pad does not exceed 250 days. In order for a property to be classified as
2.26class 4c, seasonal residential recreational for commercial purposes under this clause, at
2.27least 40 percent of the annual gross lodging receipts related to the property must be from
2.28business conducted during 90 consecutive days and either (i) at least 60 percent of all paid
2.29bookings by lodging guests during the year must be for periods of at least two consecutive
2.30nights; or (ii) at least 20 percent of the annual gross receipts must be from charges for
2.31rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski
2.32equipment, or charges for marina services, launch services, and guide services, or the
2.33sale of bait and fishing tackle. For purposes of this determination, a paid booking of
2.34five or more nights shall be counted as two bookings. Class 4c property classified under
2.35this clause also includes commercial use real property used exclusively for recreational
2.36purposes in conjunction with other class 4c property classified under this clause and
3.1devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
3.2total of two acres, provided the property is not devoted to commercial recreational use for
3.3more than 250 days in the year preceding the year of assessment and is located within two
3.4miles of the class 4c property with which it is used. Owners of real and personal property
3.5devoted to temporary and seasonal residential occupancy for recreation purposes and all
3.6or a portion of which was devoted to commercial purposes for not more than 250 days in
3.7the year preceding the year of assessment desiring classification as class 4c, must submit a
3.8declaration to the assessor designating the cabins or units occupied for 250 days or less in
3.9the year preceding the year of assessment by January 15 of the assessment year. Those
3.10cabins or units and a proportionate share of the land on which they are located must
3.11be designated class 4c under this clause as otherwise provided. The remainder of the
3.12cabins or units and a proportionate share of the land on which they are located will be
3.13designated as class 3a. The owner of property desiring designation as class 4c property
3.14under this clause must provide guest registers or other records demonstrating that the units
3.15for which class 4c designation is sought were not occupied for more than 250 days in the
3.16year preceding the assessment if so requested. The portion of a property operated as a
3.17(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
3.18nonresidential facility operated on a commercial basis not directly related to temporary
3.19and seasonal residential occupancy for recreation purposes does not qualify for class 4c;
3.20 (2) qualified property used as a golf course if:
3.21 (i) it is open to the public on a daily fee basis. It may charge membership fees or
3.22dues, but a membership fee may not be required in order to use the property for golfing,
3.23and its green fees for golfing must be comparable to green fees typically charged by
3.24municipal courses; and
3.25 (ii) it meets the requirements of section
3.26 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
3.27with the golf course is classified as class 3a property;
3.28 (3) real property up to a maximum of three acres of land owned and used by a
3.29nonprofit community service oriented organization and not used for residential purposes
3.30on either a temporary or permanent basis, provided that:
3.31 (i) the property is not used for a revenue-producing activity for more than six days
3.32in the calendar year preceding the year of assessment; or
3.33 (ii) the organization makes annual charitable contributions
3.34equal to the property's previous year's property taxes and the property is allowed to be
3.35used for public and community meetings or events for no charge, as appropriate to the
3.36size of the facility.
4.1 For purposes of this clause,
4.2 (A) "charitable
4.3as
4.4
4.5
4.6acquisition of a replacement building, as defined under section 349.12, subdivision 25,
4.7paragraph (a), clause (25), may be counted to meet up to 50 percent of the contribution
4.8requirement, for a period of not more than 20 years from the erection or acquisition of
4.9the replacement building;
4.10 (B) "property taxes" excludes the state general tax;
4.11 (C) a "nonprofit community service oriented organization" means any corporation,
4.12society, association, foundation, or institution organized and operated exclusively for
4.13charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
4.14federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
4.15Revenue Code; and
4.16 (D) "revenue-producing activities" shall include but not be limited to property or that
4.17portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
4.18liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
4.19alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
4.20insurance business, or office or other space leased or rented to a lessee who conducts a
4.21for-profit enterprise on the premises.
4.22Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
4.23of the property for social events open exclusively to members and their guests for periods
4.24of less than 24 hours, when an admission is not charged nor any revenues are received by
4.25the organization shall not be considered a revenue-producing activity.
4.26 The organization shall maintain records of its charitable contributions
4.27and of public meetings and events held on the property and make them available upon
4.28request any time to the assessor to ensure eligibility. An organization meeting the
4.29requirement under item (ii) must file an application by May 1 with the assessor for
4.30eligibility for the current year's assessment. The commissioner shall prescribe a uniform
4.31application form and instructions;
4.32 (4) postsecondary student housing of not more than one acre of land that is owned by
4.33a nonprofit corporation organized under chapter 317A and is used exclusively by a student
4.34cooperative, sorority, or fraternity for on-campus housing or housing located within two
4.35miles of the border of a college campus;
5.1 (5) (i) manufactured home parks as defined in section
5.2excluding manufactured home parks described in section
5.3manufactured home parks as defined in section
5.4section
5.5 (6) real property that is actively and exclusively devoted to indoor fitness, health,
5.6social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
5.7and is located within the metropolitan area as defined in section
5.8 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
5.9under section
5.10 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
5.11Airports Commission, or group thereof; and
5.12 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
5.13leased premise, prohibits commercial activity performed at the hangar.
5.14 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
5.15be filed by the new owner with the assessor of the county where the property is located
5.16within 60 days of the sale;
5.17 (8) a privately owned noncommercial aircraft storage hangar not exempt under
5.18section
5.19 (i) the land abuts a public airport; and
5.20 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
5.21agreement restricting the use of the premises, prohibiting commercial use or activity
5.22performed at the hangar; and
5.23 (9) residential real estate, a portion of which is used by the owner for homestead
5.24purposes, and that is also a place of lodging, if all of the following criteria are met:
5.25 (i) rooms are provided for rent to transient guests that generally stay for periods
5.26of 14 or fewer days;
5.27 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
5.28in the basic room rate;
5.29 (iii) meals are not provided to the general public except for special events on fewer
5.30than seven days in the calendar year preceding the year of the assessment; and
5.31 (iv) the owner is the operator of the property.
5.32The market value subject to the 4c classification under this clause is limited to five rental
5.33units. Any rental units on the property in excess of five, must be valued and assessed as
5.34class 3a. The portion of the property used for purposes of a homestead by the owner must
5.35be classified as class 1a property under subdivision 22;
6.1 (10) real property up to a maximum of three acres and operated as a restaurant
6.2as defined under section
6.3as defined under section
6.4is either devoted to commercial purposes for not more than 250 consecutive days, or
6.5receives at least 60 percent of its annual gross receipts from business conducted during
6.6four consecutive months. Gross receipts from the sale of alcoholic beverages must be
6.7included in determining the property's qualification under subitem (B). The property's
6.8primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
6.9sales located on the premises must be excluded. Owners of real property desiring 4c
6.10classification under this clause must submit an annual declaration to the assessor by
6.11February 1 of the current assessment year, based on the property's relevant information for
6.12the preceding assessment year; and
6.13(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
6.14as a marina, as defined in section
6.15the public and devoted to recreational use for marina services. The marina owner must
6.16annually provide evidence to the assessor that it provides services, including lake or river
6.17access to the public by means of an access ramp or other facility that is either located on
6.18the property of the marina or at a publicly owned site that abuts the property of the marina.
6.19No more than 800 feet of lakeshore may be included in this classification. Buildings used
6.20in conjunction with a marina for marina services, including but not limited to buildings
6.21used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
6.22tackle, are classified as class 3a property.
6.23 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
6.24parcel of seasonal residential recreational property not used for commercial purposes
6.25has the same class rates as class 4bb property, (ii) manufactured home parks assessed
6.26under clause (5), item (i), have the same class rate as class 4b property, and the market
6.27value of manufactured home parks assessed under clause (5), item (ii), has the same class
6.28rate as class 4d property if more than 50 percent of the lots in the park are occupied by
6.29shareholders in the cooperative corporation or association and a class rate of one percent if
6.3050 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
6.31recreational property and marina recreational land as described in clause (11), has a
6.32class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
6.33remaining market value, (iv) the market value of property described in clause (4) has a
6.34class rate of one percent, (v) the market value of property described in clauses (2), (6), and
6.35(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
6.36in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
7.1 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
7.2by the Housing Finance Agency under section
7.3of the units in the building qualify as low-income rental housing units as certified under
7.4section
7.5of units in the building qualify for class 4d. The remaining portion of the building shall be
7.6classified by the assessor based upon its use. Class 4d also includes the same proportion of
7.7land as the qualifying low-income rental housing units are to the total units in the building.
7.8For all properties qualifying as class 4d, the market value determined by the assessor must
7.9be based on the normal approach to value using normal unrestricted rents.
7.10 Class 4d property has a class rate of 0.75 percent.
7.11EFFECTIVE DATE.This section is effective for assessment year 2011 and
7.12thereafter, for taxes payable in 2012 and thereafter.
