| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; property; modifying property tax exemption for certain airport |
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| 3 | 3 | | 1.3 property; amending Minnesota Statutes 2024, section 272.01, subdivision 2. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. Minnesota Statutes 2024, section 272.01, subdivision 2, is amended to read: |
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| 6 | 6 | | 1.6 Subd. 2.Exempt property used by private entity for profit.(a) When any real or |
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| 7 | 7 | | 1.7personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, |
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| 8 | 8 | | 1.8loaned, or otherwise made available and used by a private individual, association, or |
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| 9 | 9 | | 1.9corporation in connection with a business conducted for profit, there shall be imposed a |
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| 10 | 10 | | 1.10tax, for the privilege of so using or possessing such real or personal property, in the same |
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| 11 | 11 | | 1.11amount and to the same extent as though the lessee or user was the owner of such property. |
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| 12 | 12 | | 1.12 (b) The tax imposed by this subdivision shall not apply to: |
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| 13 | 13 | | 1.13 (1) property leased or used as a concession in or relative to the use in whole or part of |
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| 14 | 14 | | 1.14a public park, market, fairgrounds, port authority, economic development authority |
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| 15 | 15 | | 1.15established under chapter 469, municipal auditorium, municipal parking facility, municipal |
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| 16 | 16 | | 1.16museum, or municipal stadium; |
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| 17 | 17 | | 1.17 (2) property of an airport owned by a city, town, county, or group thereof which is: |
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| 18 | 18 | | 1.18 (i) leased to or used by any person or entity including a fixed base operator; and |
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| 19 | 19 | | 1.19 (ii) used as a hangar for the storage or, repair, or manufacture of aircraft or to provide |
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| 20 | 20 | | 1.20aviation goods, services, or facilities to the airport or general public; |
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| 21 | 21 | | 1.21the exception from taxation provided in this clause does not apply to: |
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| 22 | 22 | | 1Section 1. |
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| 23 | 23 | | 25-01996 as introduced01/16/25 REVISOR MS/VJ |
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| 24 | 24 | | SENATE |
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| 25 | 25 | | STATE OF MINNESOTA |
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| 26 | 26 | | S.F. No. 1027NINETY-FOURTH SESSION |
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| 27 | 27 | | (SENATE AUTHORS: HAUSCHILD, Lang, Hoffman and Putnam) |
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| 28 | 28 | | OFFICIAL STATUSD-PGDATE |
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| 29 | 29 | | Introduction and first reading02/06/2025 |
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| 30 | 30 | | Referred to Taxes 2.1 (i) property located at an airport owned or operated by the Metropolitan Airports |
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| 31 | 31 | | 2.2Commission or by a city of over 50,000 population according to the most recent federal |
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| 32 | 32 | | 2.3census or such a city's airport authority; or |
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| 33 | 33 | | 2.4 (ii) hangars leased by a private individual, association, or corporation in connection with |
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| 34 | 34 | | 2.5a business conducted for profit other than an aviation-related business; |
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| 35 | 35 | | 2.6 (3) property constituting or used as a public pedestrian ramp or concourse in connection |
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| 36 | 36 | | 2.7with a public airport; |
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| 37 | 37 | | 2.8 (4) except as provided in paragraph (f), property constituting or used as a passenger |
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| 38 | 38 | | 2.9check-in area or ticket sale counter, boarding area, or luggage claim area in connection with |
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| 39 | 39 | | 2.10a public airport but not the airports owned or operated by the Metropolitan Airports |
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| 40 | 40 | | 2.11Commission or cities of over 50,000 population or an airport authority therein. Real estate |
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| 41 | 41 | | 2.12owned by a municipality in connection with the operation of a public airport and leased or |
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| 42 | 42 | | 2.13used for agricultural purposes is not exempt; |
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| 43 | 43 | | 2.14 (5) property leased, loaned, or otherwise made available to a private individual, |
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| 44 | 44 | | 2.15corporation, or association under a cooperative farming agreement made pursuant to section |
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| 45 | 45 | | 2.1697A.135; or |
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| 46 | 46 | | 2.17 (6) property leased, loaned, or otherwise made available to a private individual, |
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| 47 | 47 | | 2.18corporation, or association under section 272.68, subdivision 4. |
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| 48 | 48 | | 2.19 (c) Except as provided in paragraph (f), the exception from taxation provided in paragraph |
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| 49 | 49 | | 2.20(b), clause (2), does not apply to: |
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| 50 | 50 | | 2.21 (1) property located at an airport owned or operated by the Metropolitan Airports |
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| 51 | 51 | | 2.22Commission or by a city of over 50,000 population according to the most recent federal |
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| 52 | 52 | | 2.23census or such a city's airport authority; or |
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| 53 | 53 | | 2.24 (2) hangars leased by a private individual, association, or corporation in connection with |
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| 54 | 54 | | 2.25a business conducted for profit other than an aviation-related business. |
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| 55 | 55 | | 2.26 (c) (d) Taxes imposed by this subdivision are payable as in the case of personal property |
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| 56 | 56 | | 2.27taxes and shall be assessed to the lessees or users of real or personal property in the same |
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| 57 | 57 | | 2.28manner as taxes assessed to owners of real or personal property, except that such taxes shall |
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| 58 | 58 | | 2.29not become a lien against the property. When due, the taxes shall constitute a debt due from |
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| 59 | 59 | | 2.30the lessee or user to the state, township, city, county, and school district for which the taxes |
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| 60 | 60 | | 2.31were assessed and shall be collected in the same manner as personal property taxes. If |
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| 61 | 61 | | 2.32property subject to the tax imposed by this subdivision is leased or used jointly by two or |
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| 62 | 62 | | 2Section 1. |
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| 63 | 63 | | 25-01996 as introduced01/16/25 REVISOR MS/VJ 3.1more persons, each lessee or user shall be jointly and severally liable for payment of the |
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| 64 | 64 | | 3.2tax. |
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| 65 | 65 | | 3.3 (d) (e) The tax on real property of the federal government, the state or any of its political |
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| 66 | 66 | | 3.4subdivisions that is leased, loaned, or otherwise made available to a private individual, |
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| 67 | 67 | | 3.5association, or corporation and becomes taxable under this subdivision or other provision |
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| 68 | 68 | | 3.6of law must be assessed and collected as a personal property assessment. The taxes do not |
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| 69 | 69 | | 3.7become a lien against the real property. |
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| 70 | 70 | | 3.8 (f) Property of an airport that is: |
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| 71 | 71 | | 3.9 (1) located at an airport owned or operated by a city of over 50,000 but under 150,000 |
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| 72 | 72 | | 3.10in population according to the most recent federal census or such a city's airport authority; |
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| 73 | 73 | | 3.11 (2) not owned or operated by the Metropolitan Airports Commission; and |
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| 74 | 74 | | 3.12 (3) used as a hangar for the storage, repair, or manufacture of aircraft or to provide |
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| 75 | 75 | | 3.13aviation goods, services, or facilities to the airport or general public, or used as a passenger |
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| 76 | 76 | | 3.14check-in area or ticket sale counter, boarding area, or luggage claim area, shall have the tax |
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| 77 | 77 | | 3.15imposed by this subdivision calculated as follows: for property taxes payable in 2026 through |
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| 78 | 78 | | 3.162037, the net tax capacity of such property shall be reduced by 50 percent. |
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| 79 | 79 | | 3.17 EFFECTIVE DATE.This section is effective beginning with property taxes payable |
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| 80 | 80 | | 3.18in 2026. |
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| 81 | 81 | | 3Section 1. |
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| 82 | 82 | | 25-01996 as introduced01/16/25 REVISOR MS/VJ |
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