SF4794

Purpose

Introduce a property tax exemption for certain property owned by a federally recognized Indian Tribe or its instrumentality. The exemption targets property used to store medical clinic equipment and materials and located in Minnesota.

Main Provisions

• Establishes a property tax exemption for one parcel of property.
• The property must be located in a city with a population greater than 12,400 but less than 12,800, based on the 2020 federal census.
• The property must be owned by a federally recognized Indian Tribe or its instrumentality and located within Minnesota.
• The property must be used to store medical clinic equipment and materials.
• The exemption applies as of January 1, 2026 and on the current assessment.
• Properties used for housing, parking facilities, agriculture, or forestry do not qualify for the exemption.

Changes to Existing Law

• Adds a new subdivision (Subd. 109) to Minnesota Statutes 2024 section 272.02 to create this specific exemption.
• Limits the exemption to a single parcel.
• Defines eligible use (storing medical clinic equipment and materials) and ineligible uses (housing, parking, agriculture, forestry).

Eligibility and Limitations

• Only one parcel may receive the exemption.
• The property must be owned by a federally recognized Indian Tribe or its instrumentality.
• The property must store medical clinic equipment and materials.
• The city’s population must fall within the specified range according to the 2020 census.
• The exemption does not apply to portions used for housing, parking facilities, agriculture, or forestry.

Practical Impact

• Provides targeted property tax relief for a specific type of tribal-held property used for medical clinic logistics within a narrowly defined city population band.
• May affect tax bills for the eligible parcel beginning with the 2026 assessment year and continue under the statute’s terms, limited to the one qualifying parcel.

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