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HF1698 (Legislative Session 94 (2025-2026))

Property tax exemption allowed for certain leased land.

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide specific exemptions from property taxes for certain types of leased land in Minnesota. This legislation amends existing tax laws to clarify which properties, when leased, are still exempt from state property taxes.

Main Provisions

  • Property Tax on Exempted Properties:

    • Generally, when tax-exempt properties are used for profit by private entities, they are subject to property taxes as if the lessee were the owner.

  • Exemption Criteria:

    • Property leased as part of operations in public spaces like parks, markets, municipal facilities, and stadiums remain exempt from these taxes.
    • Airport properties owned by local governments that are leased for aviation-related activities (like hangars for plane storage) are also exempt, with exceptions for airports owned by large cities or the Metropolitan Airports Commission.
    • Real estate leased for agricultural purposes by municipalities connected to public airports does not receive an exemption.
    • Properties in active conservation use that are leased for grazing to further conservation goals of nonprofit organizations are exempt as well.

Significant Changes

  • The bill specifies additional circumstances under which leased properties remain exempt from taxation, particularly focusing on aviation-related facilities and conservation land.
  • Adjusts how taxes are assessed and collected on properties used for profit or private purposes despite being owned by government entities or nonprofits.

Relevant Terms

  • Property tax exemption
  • Leased land
  • Public facilities
  • Aviation-related activities
  • Conservation objectives
  • Tax assessment and collection

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies property usage exemptions for municipal facilities and airport properties not owned by the Metropolitan Airports Commission."
      ],
      "removed": [
        "Exemption for municipal properties used for agriculture related to public airports."
      ],
      "summary": "This bill modifies property tax exemption rules for properties leased for profit under section 272.01.",
      "modified": [
        "Adjustments to tax imposition rules for leased municipal airport properties."
      ]
    },
    "citation": "272.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section compliant with existing laws for cooperative farming agreements.",
      "modified": []
    },
    "citation": "272.68"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to agreements under conservation laws.",
      "modified": []
    },
    "citation": "97A.135"
  }
]

Sponsors