Minnesota 2025-2026 Regular Session

Minnesota House Bill HF443 Latest Draft

Bill / Introduced Version Filed 02/11/2025

                            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:​
1​Section 1.​
REVISOR MS/VJ 25-01996​01/16/25 ​
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 Skraba​02/13/2025​
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​
2​Section 1.​
REVISOR MS/VJ 25-01996​01/16/25 ​ 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.​
3​Section 1.​
REVISOR MS/VJ 25-01996​01/16/25 ​