Bill > HF2257

This bill modifies Minnesota's property tax exemption rules for public charity institutions, specifically addressing rental housing properties. Currently, institutions of public charity that are exempt from federal income taxation can receive property tax exemptions if they meet certain criteria, such as having a purpose to help others without immediate material reward, being supported by donations or grants, and providing services at reduced or no cost. The bill adds new provisions specifying that rental housing property will not automatically qualify for tax exemption. To be exempt, the rental property must directly further the organization's charitable purpose and cannot qualify solely by providing housing to people based on their income characteristics. The bill clarifies that government rent assistance or financing support for setting aside units for low-income residents will not be considered gifts or donations that contribute to the exemption. Rent assistance and financing help will not automatically qualify the property for a tax exemption. The changes will take effect for property taxes payable in 2025 and subsequent years, potentially limiting tax exemptions for some charitable housing organizations.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2257&ssn=0&y=2025