This bill amends Minnesota Statutes 2024, section 272.02, subdivision 7, to modify the provisions related to property tax exemptions for institutions of public charity. It clarifies that institutions exempt under section 501(c)(3) must meet specific criteria to qualify for property tax exemptions, including the nature of their charitable activities and the financial support they receive. Notably, the bill introduces a new provision stating that rental housing property will not qualify for an exemption unless its use furthers the tax-exempt charitable purpose of the organization and does not solely provide housing based on income characteristics.

Additionally, the bill specifies that certain forms of government assistance, such as rent assistance to tenants and financing or tax credits to property owners conditioned on setting aside units for specific income groups, do not count as gifts or donations to the owner of rental housing. The changes are set to take effect for property taxes payable in 2025 and thereafter.

Statutes affected:
Introduction: 272.02