HF4677

Purpose

Provide a property tax exemption for a specific category of property owned by a federally recognized Indian Tribe or its instrumentality, located in Minnesota, and used to store medical clinic equipment and materials.

Main Provisions

• Creates a new subdivision (Subd. 109) to Minnesota Statutes 272.02.
• Exemption applies to property that:
  • Is located in a city with a population greater than 12,400 and less than 12,800 per the 2020 federal census.
  • Is owned by a federally recognized Indian Tribe or its instrumentality and is located in Minnesota.
  • Is used to store medical clinic equipment and materials.
  • Is on the current assessment as of January 1, 2026.
• The exemption is limited to one parcel.
• Exemption does not apply to any portion of the property used for housing, parking facilities, agriculture, or forestry.

Significant Changes to Existing Law

• Adds a new exemption category to the property tax law (Minnesota Statutes 272.02, Subd. 109) for specific tribal-owned property used for medical clinic storage in a defined small-city context.
• Sets parcel-limit and usage restrictions to qualify for the exemption.

Scope and Implications

• Targets a narrow set of tribal-owned property used for healthcare-related storage within a small Minnesota city.
• Aims to reduce property tax burden for this particular use, potentially supporting healthcare infrastructure or clinics operated by Indian Tribes or their entities in that city context.

Key Terms (from the bill)

• property tax exemption
• Minnesota Statutes 272.02
• Subdivision 109
• Indian Tribe
• federally recognized Indian Tribe
• instrumentality
• current assessment
• January 1, 2026
• medical clinic equipment and materials
• one parcel
• housing
• parking facilities
• agriculture
• forestry
• city population (2020 federal census: >12,400 and <12,800)

Relevant Terms property tax exemption; Indian Tribe; federally recognized; instrumentality; medical clinic equipment; medical clinic materials; current assessment; January 1, 2026; one parcel; housing; parking facilities; agriculture; forestry; Minnesota Statutes 272.02; Subd. 109; city population; 2020 federal census.