Bill > SF2915

This bill modifies the property tax exemption rules for institutions of public charity in Minnesota, specifically addressing rental housing properties. Currently, institutions that are exempt from federal income tax under section 501(c)(3) can qualify for property tax exemption by meeting certain criteria, such as having a charitable purpose, receiving donations, providing services at reduced costs, and not distributing profits to private interests. The bill now adds specific provisions for rental housing properties, stipulating that such properties will only qualify for tax exemption if the rental housing directly furthers the organization's charitable purpose and is not merely based on providing housing to people with specific income characteristics. The bill clarifies that government rent assistance or financing support for low-income housing does not automatically constitute a charitable donation. Additionally, the bill specifies that this new provision will take effect for property taxes payable in 2025 and subsequent years. The goal appears to be preventing organizations from claiming charitable tax exemptions for rental properties that do not genuinely serve a broader charitable mission.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2915&ssn=0&y=2025