SF5206

1. Purpose

2. Establish a one-time property tax exemption for a property acquired by the United Way of Bemidji Area on August 1, 2025, so it would be exempt from property taxes payable in 2026.

3. Main Provisions and what the bill seeks to accomplish

4. Exemption scope: The property acquired by the United Way of Bemidji Area on August 1, 2025 is exempt from property taxes payable in 2026.

5. Legal override: Notwithstanding existing law (including Minnesota Statutes section 272.02 subdivision 38 paragraph b and any other law to the contrary), the exemption applies.

6. Exemption process for the property: The county assessor must provide the United Way with an exemption application for assessment year 2025, and the United Way must file the application with the county assessor by August 1, 2026 to qualify.

7. State funding to support the exemption: An amount necessary to make a payment to the county for the taxes attributable to the exemption is appropriated from the general fund to the commissioner of revenue in fiscal year 2027.

8. Determination of payment: By August 1, 2026, the Beltrami County auditor must certify to the commissioner of revenue the amount to be paid to the county under the exemption.

9. Timely payment by state: The commissioner of revenue must make this payment by August 15, 2026.

10. Allocation of any unpaid tax: For any unpaid portion of the 2026 tax, the county auditor must distribute the payment to local jurisdictions in proportion to the amount of tax levied on the property in 2026.

11. Tax refunds: The county auditor must also provide a refund of any taxes paid by the United Way of Bemidji Area for property taxes payable in 2026 on the property.

12. Timing and Key Steps

13. August 1, 2026: United Way must file the exemption application for assessment year 2025 to qualify.

14. August 1, 2026: Beltrami County auditor certifies the amount to be paid by the state to the county.

15. August 15, 2026: The commissioner of revenue must make the payment to the county.

16. Fiscal year 2027: The state appropriates from the general fund the amount needed to fund the exemption.

17. Fiscal Impact and Funding Mechanism

18. Funding source: The exemption is supported by an appropriation from the general fund to the commissioner of revenue.

19. Payment timeline: The state pays the county by mid-August 2026, with the initial funding arranged through a general-fund appropriation in 2027 to cover the exemption.

20. Affected Parties and Roles

21. United Way of Bemidji Area: Property owner receiving the exemption if requirements are met.

22. Beltrami County: County where the property is located; county assessor issues the exemption process and the county auditor handles certification, payment distribution, and refunds.

23. County assessor: Must provide and process the exemption application.

24. County auditor: Must certify the amount to be paid, distribute any unpaid tax to local jurisdictions, and issue refunds for any taxes paid.

25. Commissioner of revenue: Receives the certification amount and makes the payment to the county; administers the appropriation.

26. Changes to Existing Law

27. Adds a new, targeted property tax exemption for the United Way of Bemidji Area property and outlines a specific funding mechanism to reimburse the counties and local jurisdictions, overriding certain provisions of existing tax-exemption statutes for this case.

Relevant Terms - property tax exemption - United Way of Bemidji Area - Beltrami County - county assessor - county auditor - commissioner of revenue - general fund - appropriation - assessment year 2025 - taxes payable in 2026 - not withstanding (notwithstanding existing law) - refund - local jurisdictions - proportion to tax levied - August 1, 2026 - August 15, 2026 - fiscal year 2027