Purpose of the Bill

The purpose of this legislative bill is to establish a property tax exemption for certain properties owned by Indian Tribes under specific conditions. This is aimed at reducing the financial burden on Indian Tribes for properties used for governmental activities.

Main Provisions

• Property Tax Exemption Criteria: The bill proposes that a portion of property owned by federally recognized Indian Tribes can be exempt from property taxes if:

  1. The property is located in a city classified as the first class, with a population greater than 400,000, based on the 2020 federal census.
  2. The property was owned by the Tribe or its instrumentality as of January 2, 2025, and continues to be owned during the current assessment year.
  3. The property is used exclusively for noncommercial Tribal government activities and its market value does not exceed 7,955 square feet in aggregate.

• Exclusions from Exemption: Portions of the property used for single-family housing, market-rate apartments, parking facilities, agriculture, or forestry are not eligible for the tax exemption.

Significant Changes to Existing Law

• The bill amends Minnesota Statutes 2024 section 272.02 by adding a new subdivision that specifically addresses tax exemptions for properties used by Indian Tribes. This provides a clear legal basis for exempting certain Tribal government properties from tax liabilities.

Relevant Terms

property tax exemption, Indian Tribe, federally recognized, noncommercial Tribal government activities, city of the first class, property assessment, tax liabilities, Minnesota Statutes, market value.