| 1 | 1 | | 1.1 A bill for an act |
|---|
| 2 | 2 | | 1.2 relating to taxation; property; establishing a property tax exemption for certain |
|---|
| 3 | 3 | | 1.3 property owned and operated by a congressionally chartered veterans service |
|---|
| 4 | 4 | | 1.4 organization; amending Minnesota Statutes 2022, sections 272.02, by adding a |
|---|
| 5 | 5 | | 1.5 subdivision; 273.13, subdivision 25. |
|---|
| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
|---|
| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision |
|---|
| 8 | 8 | | 1.8to read: |
|---|
| 9 | 9 | | 1.9 Subd. 105.Congressionally chartered veterans service organizations.(a) Property |
|---|
| 10 | 10 | | 1.10qualifying for classification under section 273.13, subdivision 25, paragraph (d), clause (3), |
|---|
| 11 | 11 | | 1.11that is owned and operated by a congressionally chartered veterans service organization is |
|---|
| 12 | 12 | | 1.12exempt. The commissioner of veterans affairs must annually provide a list of congressionally |
|---|
| 13 | 13 | | 1.13charted veterans service organizations to the commissioner of revenue by January 1. |
|---|
| 14 | 14 | | 1.14 (b) For assessment year 2023 only: (1) the commissioner of veterans affairs must provide |
|---|
| 15 | 15 | | 1.15a list of congressionally charted veterans service organizations to the commissioner of |
|---|
| 16 | 16 | | 1.16revenue by July 1, 2023; and (2) a congressionally chartered veterans service organization |
|---|
| 17 | 17 | | 1.17must file an exemption application under this section with the county assessor by August |
|---|
| 18 | 18 | | 1.181, 2023. |
|---|
| 19 | 19 | | 1.19 EFFECTIVE DATE.This section is effective beginning with assessment year 2023. |
|---|
| 20 | 20 | | 1.20 Sec. 2. Minnesota Statutes 2022, section 273.13, subdivision 25, is amended to read: |
|---|
| 21 | 21 | | 1.21 Subd. 25.Class 4.(a) Class 4a is residential real estate containing four or more units |
|---|
| 22 | 22 | | 1.22and used or held for use by the owner or by the tenants or lessees of the owner as a residence |
|---|
| 23 | 23 | | 1Sec. 2. |
|---|
| 24 | 24 | | REVISOR MS/RC 23-0081801/05/23 |
|---|
| 25 | 25 | | State of Minnesota |
|---|
| 26 | 26 | | This Document can be made available |
|---|
| 27 | 27 | | in alternative formats upon request |
|---|
| 28 | 28 | | HOUSE OF REPRESENTATIVES |
|---|
| 29 | 29 | | H. F. No. 446 |
|---|
| 30 | 30 | | NINETY-THIRD SESSION 2.1for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a |
|---|
| 31 | 31 | | 2.2also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt |
|---|
| 32 | 32 | | 2.3under section 272.02, and contiguous property used for hospital purposes, without regard |
|---|
| 33 | 33 | | 2.4to whether the property has been platted or subdivided. The market value of class 4a property |
|---|
| 34 | 34 | | 2.5has a classification rate of 1.25 percent. |
|---|
| 35 | 35 | | 2.6 (b) Class 4b includes: |
|---|
| 36 | 36 | | 2.7 (1) residential real estate containing less than four units, including property rented as a |
|---|
| 37 | 37 | | 2.8short-term rental property for more than 14 days in the preceding year, that does not qualify |
|---|
| 38 | 38 | | 2.9as class 4bb, other than seasonal residential recreational property; |
|---|
| 39 | 39 | | 2.10 (2) manufactured homes not classified under any other provision; |
|---|
| 40 | 40 | | 2.11 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm |
|---|
| 41 | 41 | | 2.12classified under subdivision 23, paragraph (b) containing two or three units; and |
|---|
| 42 | 42 | | 2.13 (4) unimproved property that is classified residential as determined under subdivision |
|---|
| 43 | 43 | | 2.1433. |
|---|
| 44 | 44 | | 2.15 For the purposes of this paragraph, "short-term rental property" means nonhomestead |
|---|
| 45 | 45 | | 2.16residential real estate rented for periods of less than 30 consecutive days. |
|---|
| 46 | 46 | | 2.17 The market value of class 4b property has a classification rate of 1.25 percent. |
|---|
| 47 | 47 | | 2.18 (c) Class 4bb includes: |
|---|
| 48 | 48 | | 2.19 (1) nonhomestead residential real estate containing one unit, other than seasonal |
|---|
| 49 | 49 | | 2.20residential recreational property; |
|---|
| 50 | 50 | | 2.21 (2) a single family dwelling, garage, and surrounding one acre of property on a |
|---|
| 51 | 51 | | 2.22nonhomestead farm classified under subdivision 23, paragraph (b); and |
|---|
| 52 | 52 | | 2.23 (3) a condominium-type storage unit having an individual property identification number |
|---|
| 53 | 53 | | 2.24that is not used for a commercial purpose. |
|---|
| 54 | 54 | | 2.25 Class 4bb property has the same classification rates as class 1a property under subdivision |
|---|
| 55 | 55 | | 2.2622. |
|---|
| 56 | 56 | | 2.27 Property that has been classified as seasonal residential recreational property at any time |
|---|
| 57 | 57 | | 2.28during which it has been owned by the current owner or spouse of the current owner does |
|---|
| 58 | 58 | | 2.29not qualify for class 4bb. |
|---|
| 59 | 59 | | 2.30 (d) Class 4c property includes: |
|---|
| 60 | 60 | | 2Sec. 2. |
|---|
| 61 | 61 | | REVISOR MS/RC 23-0081801/05/23 3.1 (1) except as provided in subdivision 22, paragraph (c), real and personal property |
|---|
| 62 | 62 | | 3.2devoted to commercial temporary and seasonal residential occupancy for recreation purposes, |
|---|
| 63 | 63 | | 3.3for not more than 250 days in the year preceding the year of assessment. For purposes of |
|---|
| 64 | 64 | | 3.4this clause, property is devoted to a commercial purpose on a specific day if any portion of |
|---|
| 65 | 65 | | 3.5the property is used for residential occupancy, and a fee is charged for residential occupancy. |
|---|
| 66 | 66 | | 3.6Class 4c property under this clause must contain three or more rental units. A "rental unit" |
|---|
| 67 | 67 | | 3.7is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site |
|---|
| 68 | 68 | | 3.8equipped with water and electrical hookups for recreational vehicles. A camping pad offered |
|---|
| 69 | 69 | | 3.9for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c |
|---|
| 70 | 70 | | 3.10under this clause regardless of the term of the rental agreement, as long as the use of the |
|---|
| 71 | 71 | | 3.11camping pad does not exceed 250 days. In order for a property to be classified under this |
|---|
| 72 | 72 | | 3.12clause, either (i) the business located on the property must provide recreational activities, |
|---|
| 73 | 73 | | 3.13at least 40 percent of the annual gross lodging receipts related to the property must be from |
|---|
| 74 | 74 | | 3.14business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid |
|---|
| 75 | 75 | | 3.15bookings by lodging guests during the year must be for periods of at least two consecutive |
|---|
| 76 | 76 | | 3.16nights; or (B) at least 20 percent of the annual gross receipts must be from charges for |
|---|
| 77 | 77 | | 3.17providing recreational activities, or (ii) the business must contain 20 or fewer rental units, |
|---|
| 78 | 78 | | 3.18and must be located in a township or a city with a population of 2,500 or less located outside |
|---|
| 79 | 79 | | 3.19the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion |
|---|
| 80 | 80 | | 3.20of a state trail administered by the Department of Natural Resources. For purposes of item |
|---|
| 81 | 81 | | 3.21(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c |
|---|
| 82 | 82 | | 3.22property also includes commercial use real property used exclusively for recreational |
|---|
| 83 | 83 | | 3.23purposes in conjunction with other class 4c property classified under this clause and devoted |
|---|
| 84 | 84 | | 3.24to temporary and seasonal residential occupancy for recreational purposes, up to a total of |
|---|
| 85 | 85 | | 3.25two acres, provided the property is not devoted to commercial recreational use for more |
|---|
| 86 | 86 | | 3.26than 250 days in the year preceding the year of assessment and is located within two miles |
|---|
| 87 | 87 | | 3.27of the class 4c property with which it is used. In order for a property to qualify for |
|---|
| 88 | 88 | | 3.28classification under this clause, the owner must submit a declaration to the assessor |
|---|
| 89 | 89 | | 3.29designating the cabins or units occupied for 250 days or less in the year preceding the year |
|---|
| 90 | 90 | | 3.30of assessment by January 15 of the assessment year. Those cabins or units and a proportionate |
|---|
| 91 | 91 | | 3.31share of the land on which they are located must be designated class 4c under this clause |
|---|
| 92 | 92 | | 3.32as otherwise provided. The remainder of the cabins or units and a proportionate share of |
|---|
| 93 | 93 | | 3.33the land on which they are located will be designated as class 3a. The owner of property |
|---|
| 94 | 94 | | 3.34desiring designation as class 4c property under this clause must provide guest registers or |
|---|
| 95 | 95 | | 3.35other records demonstrating that the units for which class 4c designation is sought were not |
|---|
| 96 | 96 | | 3.36occupied for more than 250 days in the year preceding the assessment if so requested. The |
|---|
| 97 | 97 | | 3Sec. 2. |
|---|
| 98 | 98 | | REVISOR MS/RC 23-0081801/05/23 4.1portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center |
|---|
| 99 | 99 | | 4.2or meeting room, and (5) other nonresidential facility operated on a commercial basis not |
|---|
| 100 | 100 | | 4.3directly related to temporary and seasonal residential occupancy for recreation purposes |
|---|
| 101 | 101 | | 4.4does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" |
|---|
| 102 | 102 | | 4.5means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country |
|---|
| 103 | 103 | | 4.6ski equipment; providing marina services, launch services, or guide services; or selling bait |
|---|
| 104 | 104 | | 4.7and fishing tackle; |
|---|
| 105 | 105 | | 4.8 (2) qualified property used as a golf course if: |
|---|
| 106 | 106 | | 4.9 (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, |
|---|
| 107 | 107 | | 4.10but a membership fee may not be required in order to use the property for golfing, and its |
|---|
| 108 | 108 | | 4.11green fees for golfing must be comparable to green fees typically charged by municipal |
|---|
| 109 | 109 | | 4.12courses; and |
|---|
| 110 | 110 | | 4.13 (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). |
|---|
| 111 | 111 | | 4.14 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with |
|---|
| 112 | 112 | | 4.15the golf course is classified as class 3a property; |
|---|
| 113 | 113 | | 4.16 (3) real property up to a maximum of three acres of land owned and used by a nonprofit |
|---|
| 114 | 114 | | 4.17community service oriented organization and not used for residential purposes on either a |
|---|
| 115 | 115 | | 4.18temporary or permanent basis, provided that: |
|---|
| 116 | 116 | | 4.19 (i) the property is not used for a revenue-producing activity for more than six days in |
|---|
| 117 | 117 | | 4.20the calendar year preceding the year of assessment; or |
|---|
| 118 | 118 | | 4.21 (ii) the organization makes annual charitable contributions and donations at least equal |
|---|
| 119 | 119 | | 4.22to the property's previous year's property taxes and the property is allowed to be used for |
|---|
| 120 | 120 | | 4.23public and community meetings or events for no charge, as appropriate to the size of the |
|---|
| 121 | 121 | | 4.24facility. |
|---|
| 122 | 122 | | 4.25 For purposes of this clause: |
|---|
| 123 | 123 | | 4.26 (A) "charitable contributions and donations" has the same meaning as lawful gambling |
|---|
| 124 | 124 | | 4.27purposes under section 349.12, subdivision 25, excluding those purposes relating to the |
|---|
| 125 | 125 | | 4.28payment of taxes, assessments, fees, auditing costs, and utility payments; |
|---|
| 126 | 126 | | 4.29 (B) "property taxes" excludes the state general tax; |
|---|
| 127 | 127 | | 4.30 (C) a "nonprofit community service oriented organization" means any corporation, |
|---|
| 128 | 128 | | 4.31society, association, foundation, or institution organized and operated exclusively for |
|---|
| 129 | 129 | | 4.32charitable, religious, fraternal, civic, or educational purposes, and which is exempt from |
|---|
| 130 | 130 | | 4Sec. 2. |
|---|
| 131 | 131 | | REVISOR MS/RC 23-0081801/05/23 5.1federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal |
|---|
| 132 | 132 | | 5.2Revenue Code; and |
|---|
| 133 | 133 | | 5.3 (D) "revenue-producing activities" shall include but not be limited to property or that |
|---|
| 134 | 134 | | 5.4portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt |
|---|
| 135 | 135 | | 5.5liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling |
|---|
| 136 | 136 | | 5.6alley, a retail store, gambling conducted by organizations licensed under chapter 349, an |
|---|
| 137 | 137 | | 5.7insurance business, or office or other space leased or rented to a lessee who conducts a |
|---|
| 138 | 138 | | 5.8for-profit enterprise on the premises. |
|---|
| 139 | 139 | | 5.9 Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The |
|---|
| 140 | 140 | | 5.10use of the property for social events open exclusively to members and their guests for periods |
|---|
| 141 | 141 | | 5.11of less than 24 hours, when an admission is not charged nor any revenues are received by |
|---|
| 142 | 142 | | 5.12the organization shall not be considered a revenue-producing activity. |
|---|
| 143 | 143 | | 5.13 The organization shall maintain records of its charitable contributions and donations |
|---|
| 144 | 144 | | 5.14and of public meetings and events held on the property and make them available upon |
|---|
| 145 | 145 | | 5.15request any time to the assessor to ensure eligibility. An organization meeting the requirement |
|---|
| 146 | 146 | | 5.16under item (ii) must file an application by May 1 with the assessor for eligibility for the |
|---|
| 147 | 147 | | 5.17current year's assessment. The commissioner shall prescribe a uniform application form |
|---|
| 148 | 148 | | 5.18and instructions; |
|---|
| 149 | 149 | | 5.19 (4) postsecondary student housing of not more than one acre of land that is owned by a |
|---|
| 150 | 150 | | 5.20nonprofit corporation organized under chapter 317A and is used exclusively by a student |
|---|
| 151 | 151 | | 5.21cooperative, sorority, or fraternity for on-campus housing or housing located within two |
|---|
| 152 | 152 | | 5.22miles of the border of a college campus; |
|---|
| 153 | 153 | | 5.23 (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding |
|---|
| 154 | 154 | | 5.24manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as |
|---|
| 155 | 155 | | 5.25defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision |
|---|
| 156 | 156 | | 5.263a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision |
|---|
| 157 | 157 | | 5.272; |
|---|
| 158 | 158 | | 5.28 (6) real property that is actively and exclusively devoted to indoor fitness, health, social, |
|---|
| 159 | 159 | | 5.29recreational, and related uses, is owned and operated by a not-for-profit corporation, and is |
|---|
| 160 | 160 | | 5.30located within the metropolitan area as defined in section 473.121, subdivision 2; |
|---|
| 161 | 161 | | 5.31 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under |
|---|
| 162 | 162 | | 5.32section 272.01, subdivision 2, and the land on which it is located, provided that: |
|---|
| 163 | 163 | | 5Sec. 2. |
|---|
| 164 | 164 | | REVISOR MS/RC 23-0081801/05/23 6.1 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan |
|---|
| 165 | 165 | | 6.2Airports Commission, or group thereof; and |
|---|
| 166 | 166 | | 6.3 (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased |
|---|
| 167 | 167 | | 6.4premise, prohibits commercial activity performed at the hangar. |
|---|
| 168 | 168 | | 6.5 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be |
|---|
| 169 | 169 | | 6.6filed by the new owner with the assessor of the county where the property is located within |
|---|
| 170 | 170 | | 6.760 days of the sale; |
|---|
| 171 | 171 | | 6.8 (8) a privately owned noncommercial aircraft storage hangar not exempt under section |
|---|
| 172 | 172 | | 6.9272.01, subdivision 2, and the land on which it is located, provided that: |
|---|
| 173 | 173 | | 6.10 (i) the land abuts a public airport; and |
|---|
| 174 | 174 | | 6.11 (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement |
|---|
| 175 | 175 | | 6.12restricting the use of the premises, prohibiting commercial use or activity performed at the |
|---|
| 176 | 176 | | 6.13hangar; and |
|---|
| 177 | 177 | | 6.14 (9) residential real estate, a portion of which is used by the owner for homestead purposes, |
|---|
| 178 | 178 | | 6.15and that is also a place of lodging, if all of the following criteria are met: |
|---|
| 179 | 179 | | 6.16 (i) rooms are provided for rent to transient guests that generally stay for periods of 14 |
|---|
| 180 | 180 | | 6.17or fewer days; |
|---|
| 181 | 181 | | 6.18 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in |
|---|
| 182 | 182 | | 6.19the basic room rate; |
|---|
| 183 | 183 | | 6.20 (iii) meals are not provided to the general public except for special events on fewer than |
|---|
| 184 | 184 | | 6.21seven days in the calendar year preceding the year of the assessment; and |
|---|
| 185 | 185 | | 6.22 (iv) the owner is the operator of the property. |
|---|
| 186 | 186 | | 6.23 The market value subject to the 4c classification under this clause is limited to five rental |
|---|
| 187 | 187 | | 6.24units. Any rental units on the property in excess of five, must be valued and assessed as |
|---|
| 188 | 188 | | 6.25class 3a. The portion of the property used for purposes of a homestead by the owner must |
|---|
| 189 | 189 | | 6.26be classified as class 1a property under subdivision 22; |
|---|
| 190 | 190 | | 6.27 (10) real property up to a maximum of three acres and operated as a restaurant as defined |
|---|
| 191 | 191 | | 6.28under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under |
|---|
| 192 | 192 | | 6.29section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to |
|---|
| 193 | 193 | | 6.30commercial purposes for not more than 250 consecutive days, or receives at least 60 percent |
|---|
| 194 | 194 | | 6.31of its annual gross receipts from business conducted during four consecutive months. Gross |
|---|
| 195 | 195 | | 6.32receipts from the sale of alcoholic beverages must be included in determining the property's |
|---|
| 196 | 196 | | 6Sec. 2. |
|---|
| 197 | 197 | | REVISOR MS/RC 23-0081801/05/23 7.1qualification under item (ii). The property's primary business must be as a restaurant and |
|---|
| 198 | 198 | | 7.2not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. |
|---|
| 199 | 199 | | 7.3Owners of real property desiring 4c classification under this clause must submit an annual |
|---|
| 200 | 200 | | 7.4declaration to the assessor by February 1 of the current assessment year, based on the |
|---|
| 201 | 201 | | 7.5property's relevant information for the preceding assessment year; |
|---|
| 202 | 202 | | 7.6 (11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as |
|---|
| 203 | 203 | | 7.7a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public |
|---|
| 204 | 204 | | 7.8and devoted to recreational use for marina services. The marina owner must annually provide |
|---|
| 205 | 205 | | 7.9evidence to the assessor that it provides services, including lake or river access to the public |
|---|
| 206 | 206 | | 7.10by means of an access ramp or other facility that is either located on the property of the |
|---|
| 207 | 207 | | 7.11marina or at a publicly owned site that abuts the property of the marina. No more than 800 |
|---|
| 208 | 208 | | 7.12feet of lakeshore may be included in this classification. Buildings used in conjunction with |
|---|
| 209 | 209 | | 7.13a marina for marina services, including but not limited to buildings used to provide food |
|---|
| 210 | 210 | | 7.14and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified |
|---|
| 211 | 211 | | 7.15as class 3a property; and |
|---|
| 212 | 212 | | 7.16 (12) real and personal property devoted to noncommercial temporary and seasonal |
|---|
| 213 | 213 | | 7.17residential occupancy for recreation purposes. |
|---|
| 214 | 214 | | 7.18 Class 4c property has a classification rate of 1.5 percent of market value, except that: |
|---|
| 215 | 215 | | 7.19(i) each parcel of noncommercial seasonal residential recreational property under clause |
|---|
| 216 | 216 | | 7.20(12) has the same classification rates as class 4bb property,; (ii) manufactured home parks |
|---|
| 217 | 217 | | 7.21assessed under clause (5), item (i), have the same classification rate as class 4b property, |
|---|
| 218 | 218 | | 7.22the market value of manufactured home parks assessed under clause (5), item (ii), have a |
|---|
| 219 | 219 | | 7.23classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied |
|---|
| 220 | 220 | | 7.24by shareholders in the cooperative corporation or association and a classification rate of |
|---|
| 221 | 221 | | 7.25one percent if 50 percent or less of the lots are so occupied, and class I manufactured home |
|---|
| 222 | 222 | | 7.26parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,; |
|---|
| 223 | 223 | | 7.27(iii) commercial-use seasonal residential recreational property and marina recreational land |
|---|
| 224 | 224 | | 7.28as described in clause (11), has a classification rate of one percent for the first $500,000 of |
|---|
| 225 | 225 | | 7.29market value, and 1.25 percent for the remaining market value,; (iv) the market value of |
|---|
| 226 | 226 | | 7.30property described in clause (4) has a classification rate of one percent,; (v) the market value |
|---|
| 227 | 227 | | 7.31of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,; |
|---|
| 228 | 228 | | 7.32and (vi) that portion of the market value of property in clause (9) qualifying for class 4c |
|---|
| 229 | 229 | | 7.33property has a classification rate of 1.25 percent, and (vii) property qualifying for |
|---|
| 230 | 230 | | 7.34classification under clause (3) that is owned or operated by a congressionally chartered |
|---|
| 231 | 231 | | 7.35veterans organization has a classification rate of one percent. The commissioner of veterans |
|---|
| 232 | 232 | | 7Sec. 2. |
|---|
| 233 | 233 | | REVISOR MS/RC 23-0081801/05/23 8.1affairs must provide a list of congressionally chartered veterans organizations to the |
|---|
| 234 | 234 | | 8.2commissioner of revenue by June 30, 2017, and by January 1, 2018, and each year thereafter. |
|---|
| 235 | 235 | | 8.3 (e) Class 4d property is qualifying low-income rental housing certified to the assessor |
|---|
| 236 | 236 | | 8.4by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of |
|---|
| 237 | 237 | | 8.5the units in the building qualify as low-income rental housing units as certified under section |
|---|
| 238 | 238 | | 8.6273.128, subdivision 3, only the proportion of qualifying units to the total number of units |
|---|
| 239 | 239 | | 8.7in the building qualify for class 4d. The remaining portion of the building shall be classified |
|---|
| 240 | 240 | | 8.8by the assessor based upon its use. Class 4d also includes the same proportion of land as |
|---|
| 241 | 241 | | 8.9the qualifying low-income rental housing units are to the total units in the building. For all |
|---|
| 242 | 242 | | 8.10properties qualifying as class 4d, the market value determined by the assessor must be based |
|---|
| 243 | 243 | | 8.11on the normal approach to value using normal unrestricted rents. |
|---|
| 244 | 244 | | 8.12 (f) The first tier of market value of class 4d property has a classification rate of 0.75 |
|---|
| 245 | 245 | | 8.13percent. The remaining value of class 4d property has a classification rate of 0.25 percent. |
|---|
| 246 | 246 | | 8.14For the purposes of this paragraph, the "first tier of market value of class 4d property" means |
|---|
| 247 | 247 | | 8.15the market value of each housing unit up to the first tier limit. For the purposes of this |
|---|
| 248 | 248 | | 8.16paragraph, all class 4d property value must be assigned to individual housing units. The |
|---|
| 249 | 249 | | 8.17first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment |
|---|
| 250 | 250 | | 8.18years, the limit is adjusted each year by the average statewide change in estimated market |
|---|
| 251 | 251 | | 8.19value of property classified as class 4a and 4d under this section for the previous assessment |
|---|
| 252 | 252 | | 8.20year, excluding valuation change due to new construction, rounded to the nearest $1,000, |
|---|
| 253 | 253 | | 8.21provided, however, that the limit may never be less than $100,000. Beginning with |
|---|
| 254 | 254 | | 8.22assessment year 2015, the commissioner of revenue must certify the limit for each assessment |
|---|
| 255 | 255 | | 8.23year by November 1 of the previous year. |
|---|
| 256 | 256 | | 8.24 EFFECTIVE DATE.This section is effective beginning with assessment year 2023. |
|---|
| 257 | 257 | | 8Sec. 2. |
|---|
| 258 | 258 | | REVISOR MS/RC 23-0081801/05/23 |
|---|