SF725 (Legislative Session 94 (2025-2026))
Classification rate removal and property that exemption establishment for certain property owned and operated by congressionally chartered veterans service organizations
Related bill: HF195
AI Generated Summary
Purpose
- To provide a property tax exemption for certain property owned and operated by congressionally chartered veterans service organizations, by removing the existing classification rate that would otherwise apply.
Main Provisions
- Adds a new Subdivision 106 to Minnesota Statutes 2024 section 272.02 establishing a property tax exemption for Congressionally chartered veterans service organizations.
- The exemption applies to property that is owned and operated by a congressionally chartered veterans service organization and that qualifies for classification under Minnesota Statutes, section 27313, subdivision 25, paragraph d, clause 3.
- The Commissioner of Veterans Affairs must annually provide a list of congressionally chartered veterans service organizations to the Commissioner of Revenue by January 1 each year.
Changes to Existing Law
- Creates a new exemption category in section 272.02 (Subd 106) for properties of congressionally chartered veterans service organizations.
- Modifies how these properties are taxed by effectively removing the classification rate for them and granting a property tax exemption.
- Establishes an annual reporting requirement to ensure the tax authorities know which organizations and properties qualify.
Implementation and Impact
- Implementation hinges on the annual list provided by the Commissioner of Veterans Affairs to the Commissioner of Revenue by January 1.
- The effect is a reduction in property tax obligations for qualifying properties, reducing tax revenue from those properties, while clarifying eligibility criteria tied to section 27313, subdivision 25, paragraph d, clause 3.
Relevant Terms - Congressionally chartered veterans service organizations - Property tax exemption - Classification rate - Minnesota Statutes 2024 - Section 27202 - Subdivision 106 - Section 27313, subdivision 25, paragraph d, clause 3 - Commissioner of Veterans Affairs - Commissioner of Revenue - Annual list by January 1
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 27, 2025 | Senate | Action | Introduction and first reading | ||
| January 27, 2025 | Senate | Action | Referred to | Taxes | |
| April 03, 2025 | Senate | Action | Authors added |
Citations
[
{
"analysis": {
"added": [
"Adds Subd. 106: Congressionally chartered veterans service organizations property qualifying for classification under section 273.13, subdivision 25, paragraph d, clause 3 is exempt."
],
"removed": [],
"summary": "This bill adds a new subdivision (Subd. 106) to Minnesota Statutes, section 272.02, to exempt from classification as property tax under section 272.02 property that is owned and operated by a congressionally chartered veterans service organization and qualifies for classification under Minnesota Statutes 273.13, subdivision 25, paragraph d, clause 3.",
"modified": []
},
"citation": "272.02",
"subdivision": "subdivision 106"
},
{
"analysis": {
"added": [
"No changes to Minnesota Statutes 273.13; cross-reference is used to define exemption eligibility."
],
"removed": [],
"summary": "This bill references Minnesota Statutes 273.13, subdivision 25, paragraph d, clause 3 in defining the exemption for property owned and operated by congressionally chartered veterans service organizations. It uses this cross-reference to establish which properties qualify for the exemption described in new Subd. 106 of §272.02.",
"modified": []
},
"citation": "273.13",
"subdivision": "subdivision 25, paragraph d, clause 3"
}
]Progress through the legislative process
In Committee