This bill amends Minnesota Statutes 2024, section 272.01, subdivision 2, to modify the property tax exemption for certain airport properties. It establishes that when real or personal property exempt from ad valorem taxes is leased or used by a private entity for profit, a tax will be imposed equivalent to what would be owed if the lessee were the owner. However, the bill specifies exceptions to this tax, particularly for properties related to public airports and certain airport facilities, including hangars used for aviation-related purposes.

Notably, the bill introduces new provisions that exempt specific airport properties from taxation, particularly those located at airports owned by cities with populations between 50,000 and 150,000, provided they are not operated by the Metropolitan Airports Commission. For these properties, the tax will be calculated with a 50% reduction in net tax capacity for property taxes payable from 2026 through 2037. The bill also clarifies that the tax does not become a lien against the property and outlines the responsibilities of lessees or users regarding tax payments. The effective date for these changes is set for property taxes payable in 2026.

Statutes affected:
Introduction: 272.01