Purpose

• To change how certain properties are taxed by removing the current classification rate and instead providing a property tax exemption for property that is owned and operated by congressionally chartered veterans service organizations.

Main Provisions

• Adds a new exemption rule: A property that qualifies for classification under Minnesota Statutes section 273.13, subdivision 25, paragraph d, clause 3, and is owned and operated by a congressionally chartered veterans service organization, is exempt from property tax.
• Administrative lists: The Commissioner of Veterans Affairs must annually provide a list of congressionally chartered veterans service organizations to the Commissioner of Revenue.
• 2025-specific deadlines: For assessment year 2025 only:
  • The Commissioner of Veterans Affairs must provide the list to the Commissioner of Revenue by July 1, 2025.
  • A congressionally chartered veterans service organization must file an exemption application with the county assessor by August 1, 2025.
• Effect: If these requirements are met, the property is exempt from property tax for the specified year.

Significant Changes to Existing Law

• Replaces the approach of taxation by classification with an automatic property tax exemption for qualifying properties owned and operated by congressionally chartered veterans service organizations.
• Establishes a one-year (2025) exemption process with specific timing for list provision and exemption filing; sets up a framework for potential ongoing exemptions if similar procedures are repeated in future years.

How the change would work in practice

• A qualifying veterans service organization that owns and operates property would be spared property tax for the year 2025 if it appears on the list provided by the Commissioner of Veterans Affairs, and if it timely files the exemption application with the county assessor by the August 1, 2025 deadline.

Key terms and phrases from the bill (explicit mentions and related concepts)

• property tax exemption
• classification rate
• owner and operator
• congressionally chartered veterans service organizations
• Minnesota Statutes 2024
• section 272.02, subdivision 106.C
• section 273.13 subdivision 25 paragraph d clause 3
• exemption for property
• Commissioner of Veterans Affairs
• Commissioner of Revenue
• county assessor
• assessment year 2025
• annual list of organizations

Relevant Terms - property tax exemption - classification rate - congressionally chartered veterans service organizations - Commissioner of Veterans Affairs - Commissioner of Revenue - county assessor - assessment year 2025 - exemption application - Minnesota Statutes 2024 - section 272.02 - section 273.13 subdivision 25 paragraph d clause 3