SF4793

Purpose

Introduce a property tax exemption for certain property owned by a federally recognized Indian tribe or its instrumentality, located in Minnesota, and used exclusively as a medical clinic. The exemption is added to the state’s property tax statute (Minnesota Statutes, section 272.02 subdivision 101).

Main Provisions

• Exemption type: Property tax exemption for eligible property owned by a federally recognized Indian tribe or its instrumentality.
• Location requirement: The property must be located in a city of the first class with a population of less than 100,000 as of the 2010 federal census.
• Use requirement: The property must be used exclusively as a medical clinic for the current assessment.
• Ownership: The property must be owned by a federally recognized Indian tribe or its instrumentality.
• Size and parcel limits: The exemption applies to no more than five contiguous parcels and the structures on them, with the total aggregate square footage not exceeding 30,000 square feet.
• Ineligible properties: Property acquired for single-family housing, market-rate apartments, agriculture, or forestry does not qualify for the exemption.
• Legal basis: The exemption is added to Minnesota Statutes 2024 section 272.02 subdivision 101.
• Effective period: The exemption expires for taxes payable in 2028 and again in 2038.

Significant Changes to Existing Law

• Adds a targeted property tax exemption to the list of exemptions under Minnesota Statutes 272.02 subdivision 101, expanding tax relief specifically for small-scale tribal medical clinics in certain cities.
• Establishes explicit geographic and use-based qualifiers (city class, population threshold, exclusive medical use) and quantitative limits (up to five contiguous parcels, up to 30,000 total square feet).
• Introduces sunset provisions with two expiration years (2028 and 2038), meaning the exemption is not permanent and will require renewal or legislative action to continue beyond those dates.

Relevant scope note: This change narrows eligibility to properties linked to federally recognized tribes or their instrumentalities, tied to a particular city category and to medical clinic use, with clear size and parcel constraints.

Relevant Terms - property tax exemption - Indian tribe - federally recognized - instrumentality - medical clinic - city of the first class - population less than 100,000 - 2010 federal census - current assessment - Minnesota Statutes 272.02 subdivision 101 - contiguous parcels - square feet - 30,000 square feet - single-family housing - market-rate apartments - agriculture - forestry - taxes payable - expiration/sunset 2028 - expiration/sunset 2038