Minnesota 2025-2026 Regular Session

Minnesota House Bill HF805 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property tax refunds; establishing a property tax refund program
3	3	1.3 for child care providers that rent a child care facility; requiring a report;
4	4	1.4 appropriating money; amending Minnesota Statutes 2024, sections 290A.03,
5	5	1.5 subdivision 12, by adding subdivisions; 290A.04, by adding a subdivision; 290A.19;
6	6	1.6 290A.23, by adding a subdivision.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2024, section 290A.03, subdivision 12, is amended to read:
9	9	1.9 Subd. 12.Gross rent.(a) "Gross rent" means rent paid for the right of occupancy, at
10	10	1.10arm's length, of:
11	11	1.11 (1) a site on which a homestead which is a manufactured home is located; or
12	12	1.12 (2) eligible child care property.
13	13	1.13 (b) If the landlord and tenant have not dealt with each other at arm's length and the
14	14	1.14commissioner determines that the gross rent charged was excessive, the commissioner may
15	15	1.15adjust the gross rent to a reasonable amount for purposes of this chapter.
16	16	1.16 (c) Any amount paid by a claimant residing in property assessed pursuant to section
17	17	1.17273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be included within
18	18	1.18the term "property taxes payable" as defined in subdivision 13, to the extent allowed,
19	19	1.19notwithstanding the fact that ownership is not in the name of the claimant.
20	20	1.20 EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2024
21	21	1.21and thereafter.
22	22	1Section 1.
23	23	REVISOR EAP/LJ 25-0164101/31/25
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 805
29	29	NINETY-FOURTH SESSION
30	30	Authored by Youakim, Pinto, Kotyza-Witthuhn, Kresha, Clardy and others02/17/2025
31	31	The bill was read for the first time and referred to the Committee on Taxes 2.1 Sec. 2. Minnesota Statutes 2024, section 290A.03, is amended by adding a subdivision to
32	32	2.2read:
33	33	2.3 Subd. 17.Eligible child care facility."Eligible child care facility" means a licensed
34	34	2.4child care facility that accepts families participating in the child care assistance program
35	35	2.5under chapter 142E, and that is operated by a nonprofit charitable organization that qualifies
36	36	2.6for tax exemption under section 501(c)(3) of the Internal Revenue Code. For the purposes
37	37	2.7of this subdivision, "licensed child care facility" means a child care center licensed under
38	38	2.8Minnesota Rules, chapter 9503, or a facility used to provide licensed family day care or
39	39	2.9group family day care as defined under Minnesota Rules, chapter 9502.
40	40	2.10 EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2024
41	41	2.11and thereafter.
42	42	2.12 Sec. 3. Minnesota Statutes 2024, section 290A.03, is amended by adding a subdivision to
43	43	2.13read:
44	44	2.14 Subd. 18.Eligible child care property."Eligible child care property" means the portion
45	45	2.15of a property used to operate an eligible child care facility for which the facility paid gross
46	46	2.16rent.
47	47	2.17 EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2024
48	48	2.18and thereafter.
49	49	2.19 Sec. 4. Minnesota Statutes 2024, section 290A.04, is amended by adding a subdivision to
50	50	2.20read:
51	51	2.21 Subd. 7.Refund for child care facilities.(a) An eligible child care facility is allowed
52	52	2.22a refund equal to ten percent of gross rent paid in a calendar year for the use of eligible child
53	53	2.23care property. The refund is limited to payments of gross rent in cash or cash equivalent.
54	54	2.24 (b) To claim the refund under this subdivision, an eligible child care facility must apply
55	55	2.25to the commissioner in the calendar year following the year in which the facility paid rent.
56	56	2.26The application must be in the form and manner specified by the commissioner.
57	57	2.27 (c) The commissioner must pay refunds under this section in accordance with the schedule
58	58	2.28in section 290A.07, subdivision 3.
59	59	2.29 EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2024
60	60	2.30and thereafter.
61	61	2Sec. 4.
62	62	REVISOR EAP/LJ 25-0164101/31/25 3.1 Sec. 5. Minnesota Statutes 2024, section 290A.19, is amended to read:
63	63	3.2 290A.19 PARK OWNER TO FURNISH RENT CERTIFICATE.
64	64	3.3 (a) The park owner of a property for which rent is paid for occupancy as a homestead
65	65	3.4must furnish a certificate of rent paid to a person who is a renter on December 31, in the
66	66	3.5form prescribed by the commissioner. If the renter moves before December 31, the park
67	67	3.6owner may give the certificate to the renter at the time of moving, or mail the certificate to
68	68	3.7the forwarding address if an address has been provided by the renter. The certificate must
69	69	3.8be made available to the renter before February 1 of the year following the year in which
70	70	3.9the rent was paid. The park owner must retain a duplicate of each certificate or an equivalent
71	71	3.10record showing the same information for a period of three years. The duplicate or other
72	72	3.11record must be made available to the commissioner upon request.
73	73	3.12 (b) The commissioner may require the park owner, through a simple process, to furnish
74	74	3.13to the commissioner on or before March 1 a copy of each certificate of rent paid furnished
75	75	3.14to a renter for rent paid in the prior year. The commissioner shall prescribe the content,
76	76	3.15format, and manner of the form pursuant to section 270C.30. The commissioner may require
77	77	3.16the Social Security number, individual taxpayer identification number, federal employer
78	78	3.17identification number, or Minnesota taxpayer identification number of the park owner who
79	79	3.18is required to furnish a certificate of rent paid under this paragraph. Prior to implementation,
80	80	3.19the commissioner, after consulting with representatives of park owners, shall develop an
81	81	3.20implementation and administration plan for the requirements of this paragraph that attempts
82	82	3.21to minimize financial burdens, administration and compliance costs, and takes into
83	83	3.22consideration existing systems of park owners.
84	84	3.23 (c) For the purposes of this section, "park owner" means a park owner as defined under
85	85	3.24section 327C.015, subdivision 9, and "property" includes a lot as defined under section
86	86	3.25327C.015, subdivision 6.
87	87	3.26 (d) No later than December 31, the owner of eligible child care property for which an
88	88	3.27eligible child care facility paid gross rent must furnish a certificate of rent paid to the eligible
89	89	3.28child care facility, in the form prescribed by the commissioner. If the facility vacates the
90	90	3.29property before December 31, the owner may give the certificate to the facility at the time
91	91	3.30of moving, or mail the certificate to the forwarding address if an address has been provided
92	92	3.31by the facility. The certificate must be made available to the facility before February 1 of
93	93	3.32the year following the year in which the rent was paid. The property owner must retain a
94	94	3.33duplicate of each certificate or an equivalent record showing the same information for a
95	95	3Sec. 5.
96	96	REVISOR EAP/LJ 25-0164101/31/25 4.1period of three years. The duplicate or other record must be made available to the
97	97	4.2commissioner upon request.
98	98	4.3 EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2024
99	99	4.4and thereafter.
100	100	4.5 Sec. 6. Minnesota Statutes 2024, section 290A.23, is amended by adding a subdivision to
101	101	4.6read:
102	102	4.7 Subd. 4.Refund for child care facilities; appropriation.The amount necessary to pay
103	103	4.8refunds under section 290A.04, subdivision 7, is appropriated to the commissioner from
104	104	4.9the general fund.
105	105	4.10 EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2024
106	106	4.11and thereafter.
107	107	4.12 Sec. 7. SPECIAL RULE FOR CERTIFICATES OF RENT PAID FOR ELIGIBLE
108	108	4.13CHILD CARE FACILITIES BASED ON RENT PAID IN 2024.
109	109	4.14 For property tax refunds to an eligible child care facility under Minnesota Statutes,
110	110	4.15chapter 290A, based on rent paid in 2024, the property owner of an eligible child care facility
111	111	4.16must furnish a certificate of rent paid as provided in Minnesota Statutes, section 290A.19,
112	112	4.17paragraph (d), except the owner must furnish the certificate no later than July 31, 2025.
113	113	4.18 EFFECTIVE DATE.This section is effective the day following final enactment.
114	114	4.19 Sec. 8. REPORT; RENT CONSTITUTING PROPERTY TAXES FOR CHILD
115	115	4.20CARE FACILITIES.
116	116	4.21 No later than March 1, 2026, the commissioner of revenue must submit a report to the
117	117	4.22chairs and ranking minority members of the legislative committees and divisions with
118	118	4.23jurisdiction over taxes and property taxes. The report must estimate the share of rent
119	119	4.24constituting property taxes for child care facilities eligible for a refund under Minnesota
120	120	4.25Statutes, section 290A.04, subdivision 7. To the extent feasible, the report must provide
121	121	4.26separate estimates for the share of rent constituting property taxes for child care facilities
122	122	4.27in Minneapolis, St. Paul, the seven-county metropolitan area, and counties outside of the
123	123	4.28metropolitan area. The report may include any other information the commissioner deems
124	124	4.29relevant to determining the appropriate percentage under Minnesota Statutes, section
125	125	4.30290A.04, subdivision 7, paragraph (a), and recommendations for modifications to the
126	126	4.31property tax refund for child care facilities. The report must comply with Minnesota Statutes,
127	127	4.32sections 3.195 and 3.197.
128	128	4Sec. 8.
129	129	REVISOR EAP/LJ 25-0164101/31/25 5.1 EFFECTIVE DATE.This section is effective the day following final enactment.
130	130	5Sec. 8.
131	131	REVISOR EAP/LJ 25-0164101/31/25