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 upon 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 charitable contributions, requiring organizations to maintain records of their charitable activities and public events for verification purposes.

Moreover, the bill modifies classification rates for various property types, particularly focusing on manufactured home parks, commercial-use seasonal residential recreational property, and low-income rental housing. It establishes a classification rate of 0.75 percent for manufactured home parks with over 50 percent of lots occupied by shareholders and 1.0 percent for those with 50 percent or less occupancy. Additionally, it sets a classification rate of 1.25 percent for commercial-use seasonal residential recreational property exceeding $500,000 in market value, while outlining specific provisions for Class 4d properties, including low-income rental housing and community land trust properties, with respective classification rates of 0.25 percent and 0.75 percent. The new classification rates and the property tax exemption provisions will take effect for property taxes payable starting in 2026, allowing for a transition period for property owners and assessors.

Statutes affected:
Introduction: 272.02, 273.13