This bill amends Minnesota Statutes to establish a property tax exemption for certain properties owned or leased by congressionally chartered veterans organizations. It introduces a new subdivision under section 272.02, allowing for the exemption of up to three acres of real property, provided the organization is a nonprofit community service-oriented entity and the property is not used for residential purposes. The exemption is contingent on the organization not engaging in revenue-producing activities for more than six days in the year prior to assessment or making charitable contributions equal to at least two-thirds of the previous year's property taxes. Additionally, the property must be available for public and community meetings at no charge. The bill also amends section 273.13, subdivision 25, to clarify definitions related to nonprofit organizations and their activities, requiring organizations to maintain records of charitable contributions and public events.

Moreover, the bill modifies classification rates for various property types, including manufactured home parks, commercial-use seasonal residential recreational property, and low-income rental housing. It establishes specific classification rates, such as 0.75 percent for manufactured home parks with over 50 percent of lots occupied by shareholders and 1.25 percent for commercial-use seasonal residential recreational property exceeding $500,000 in market value. A significant insertion in the bill is the effective date, which states that the new classification rates will apply to property taxes payable starting in 2026. The commissioner of veterans affairs is also mandated to provide a list of eligible congressionally chartered veterans organizations to the commissioner of revenue annually, ensuring clearer guidelines for property classification and assessment.

Statutes affected:
Introduction: 272.02, 273.13