The 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 must meet specific criteria to qualify for exemptions, including the requirement that their activities are aimed at helping others without immediate material reward and that they are supported by donations or government grants. Additionally, the bill introduces new language 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 the income characteristics of tenants.

Furthermore, the bill specifies that certain forms of assistance, such as government rent assistance to tenants and financing or tax credits provided to property owners with conditions related to income characteristics, do not count as gifts or donations to the owner of rental housing. The effective date for these changes is set for property taxes payable in 2025 and thereafter.

Statutes affected:
Introduction: 272.02