HF1088

Purpose

This bill aims to extend a property tax exemption for land held for economic development by a local port authority in Bloomington. It allows the property to remain tax-exempt for a future tax period, and sets a deadline for applying for the exemption.

Main Provisions

• Extension of exemption: For land owned by the Port Authority of the City of Bloomington that was acquired in May 2016 and was exempt for taxes payable in 2017 through 2025, the exemption must continue for taxes payable in 2026 through 2031 if the requirements of the relevant exemption statute are met.
• Override of existing rules: The extension uses “Notwithstanding” to override certain standard requirements of Minnesota law (272.02, subdivision 39) and requires the continued application of those rules to the extended period.
• Application deadline: An initial application for the exemption under this section must be filed with the local assessor by June 30, 2025, overriding the usual deadlines in Minnesota law (section 272.025).

Significant Changes to Existing Law

• Creates a post-2025 continuation of the exemption for the specified Bloomington port authority property (2026–2031), conditional on meeting the subdivision 39 requirements.
• Sets a new, explicit deadline (June 30, 2025) for filing an initial exemption application under this section, overriding the normal process.

Intended Effect

• Maintains a long-term tax exemption for a specific economic development property to support development efforts, while establishing a clear deadline to apply for the exemption.

Potential Implications

• Local tax revenue from this property would remain exempt through 2031 if requirements are met.
• The bill focuses narrowly on a single property and its related exemption, rather than broadening exemptions for other properties.

Relevant Terms property tax exemption land held for economic development Port Authority of the City of Bloomington acquired May 2016 taxes payable 2017-2025 taxes payable 2026-2031 Minnesota Statutes section 272.02 subdivision 39 Minnesota Statutes section 272.025 initial application assessor June 30, 2025 Notwithstanding exemption requirements economic development land continued exemption