Purpose of the Bill

The purpose of this bill is to provide a property tax exemption for certain types of property owned by Indian Tribes in Minnesota. This is meant to offer financial relief and support to these communities by excluding specific properties from taxation.

Main Provisions

• Eligibility Criteria: The bill outlines that to qualify for the property tax exemption, the property must meet several conditions:

  • It must be located in a city classified as "of the first class" with a population exceeding 400,000, as per the 2020 federal census data.
  • The property must be owned by a federally recognized Indian Tribe or its subsidiary within Minnesota as of January 2, 2025, and continue to be owned by them during the current assessment.
  • The property must be used exclusively for noncommercial Tribal government activities and should not exceed an aggregate area of 7,955 square feet in market value.

• Exclusions: The bill specifies that certain types of Tribal-owned properties do not qualify for this exemption. These include:

  • Properties used for single-family housing.
  • Properties used for market-rate apartments.
  • Properties allocated for parking facilities.
  • Properties used for agriculture or forestry.

Significant Changes to Existing Law

The bill introduces a new subdivision to Minnesota Statutes 2024, section 272.02, which previously did not include specific provisions for property tax exemptions for Indian Tribe-owned properties used for governmental purposes in large cities.

Relevant Terms

• Property tax exemption
• Indian Tribe
• Noncommercial Tribal government activities
• First class city
• Federally recognized Indian Tribe