1.1 A bill for an act
1.2 relating to taxation; property; modifying property tax exemption for certain airport
1.3 property; amending Minnesota Statutes 2024, section 272.01, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 272.01, subdivision 2, is amended to read:
1.6 Subd. 2.Exempt property used by private entity for profit.(a) When any real or
1.7personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased,
1.8loaned, or otherwise made available and used by a private individual, association, or
1.9corporation in connection with a business conducted for profit, there shall be imposed a
1.10tax, for the privilege of so using or possessing such real or personal property, in the same
1.11amount and to the same extent as though the lessee or user was the owner of such property.
1.12 (b) The tax imposed by this subdivision shall not apply to:
1.13 (1) property leased or used as a concession in or relative to the use in whole or part of
1.14a public park, market, fairgrounds, port authority, economic development authority
1.15established under chapter 469, municipal auditorium, municipal parking facility, municipal
1.16museum, or municipal stadium;
1.17 (2) property of an airport owned by a city, town, county, or group thereof which is:
1.18 (i) leased to or used by any person or entity including a fixed base operator; and
1.19 (ii) used as a hangar for the storage or, repair, or manufacture of aircraft or to provide
1.20aviation goods, services, or facilities to the airport or general public;
1.21the exception from taxation provided in this clause does not apply to:
1Section 1.
REVISOR MS/VJ 25-0199601/16/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 443
NINETY-FOURTH SESSION
Authored by Kozlowski; Johnson, P.; Zeleznikar and Skraba02/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 (i) property located at an airport owned or operated by the Metropolitan Airports
2.2Commission or by a city of over 50,000 population according to the most recent federal
2.3census or such a city's airport authority; or
2.4 (ii) hangars leased by a private individual, association, or corporation in connection with
2.5a business conducted for profit other than an aviation-related business;
2.6 (3) property constituting or used as a public pedestrian ramp or concourse in connection
2.7with a public airport;
2.8 (4) except as provided in paragraph (f), property constituting or used as a passenger
2.9check-in area or ticket sale counter, boarding area, or luggage claim area in connection with
2.10a public airport but not the airports owned or operated by the Metropolitan Airports
2.11Commission or cities of over 50,000 population or an airport authority therein. Real estate
2.12owned by a municipality in connection with the operation of a public airport and leased or
2.13used for agricultural purposes is not exempt;
2.14 (5) property leased, loaned, or otherwise made available to a private individual,
2.15corporation, or association under a cooperative farming agreement made pursuant to section
2.1697A.135; or
2.17 (6) property leased, loaned, or otherwise made available to a private individual,
2.18corporation, or association under section 272.68, subdivision 4.
2.19 (c) Except as provided in paragraph (f), the exception from taxation provided in paragraph
2.20(b), clause (2), does not apply to:
2.21 (1) property located at an airport owned or operated by the Metropolitan Airports
2.22Commission or by a city of over 50,000 population according to the most recent federal
2.23census or such a city's airport authority; or
2.24 (2) hangars leased by a private individual, association, or corporation in connection with
2.25a business conducted for profit other than an aviation-related business.
2.26 (c) (d) Taxes imposed by this subdivision are payable as in the case of personal property
2.27taxes and shall be assessed to the lessees or users of real or personal property in the same
2.28manner as taxes assessed to owners of real or personal property, except that such taxes shall
2.29not become a lien against the property. When due, the taxes shall constitute a debt due from
2.30the lessee or user to the state, township, city, county, and school district for which the taxes
2.31were assessed and shall be collected in the same manner as personal property taxes. If
2.32property subject to the tax imposed by this subdivision is leased or used jointly by two or
2Section 1.
REVISOR MS/VJ 25-0199601/16/25 3.1more persons, each lessee or user shall be jointly and severally liable for payment of the
3.2tax.
3.3 (d) (e) The tax on real property of the federal government, the state or any of its political
3.4subdivisions that is leased, loaned, or otherwise made available to a private individual,
3.5association, or corporation and becomes taxable under this subdivision or other provision
3.6of law must be assessed and collected as a personal property assessment. The taxes do not
3.7become a lien against the real property.
3.8 (f) Property of an airport that is:
3.9 (1) located at an airport owned or operated by a city of over 50,000 but under 150,000
3.10in population according to the most recent federal census or such a city's airport authority;
3.11 (2) not owned or operated by the Metropolitan Airports Commission; and
3.12 (3) used as a hangar for the storage, repair, or manufacture of aircraft or to provide
3.13aviation goods, services, or facilities to the airport or general public, or used as a passenger
3.14check-in area or ticket sale counter, boarding area, or luggage claim area, shall have the tax
3.15imposed by this subdivision calculated as follows: for property taxes payable in 2026 through
3.162037, the net tax capacity of such property shall be reduced by 50 percent.
3.17 EFFECTIVE DATE.This section is effective beginning with property taxes payable
3.18in 2026.
3Section 1.
REVISOR MS/VJ 25-0199601/16/25