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 paid if the lessee were the owner. However, specific exemptions are outlined, including properties used in public parks, certain airport properties, and those used for agricultural purposes. Notably, the bill clarifies that the tax exemption does not apply to properties at airports owned by the Metropolitan Airports Commission or cities with populations over 50,000, as well as hangars leased for non-aviation-related businesses.

Additionally, the bill introduces a new provision that reduces the net tax capacity of certain airport properties located in cities with populations between 50,000 and 150,000 by 50% for property taxes payable from 2026 to 2037. This reduction applies to properties not owned by the Metropolitan Airports Commission and used for aviation-related purposes, such as hangars or passenger service areas. The effective date for these changes is set for property taxes payable in 2026.

Statutes affected:
Introduction: 272.01