Purpose of the Bill

The bill aims to amend existing property tax laws to provide a tax exemption for specific properties owned by Indian Tribes in Minnesota. This is to acknowledge and support the noncommercial activities of Tribal governments.

Main Provisions

• Exemption Criteria:

  • The bill introduces a property tax exemption for certain properties owned by federally recognized Indian Tribes within Minnesota.
  • To qualify, the property must be located in a city of the first class with a population exceeding 400,000, based on the 2020 census.
  • The property must be owned by the tribe as of January 2, 2025, and still during the current assessment year.

• Usage Requirements:

  • The exemption is applicable only to portions of the property used exclusively for noncommercial Tribal government activities.
  • The exempt portion’s market value must not collectively exceed an area of 7,955 square feet.

• Exclusions:

  • Properties or portions thereof used for single-family housing, market-rate apartments, parking facilities, agriculture, or forestry purposes are not eligible for the exemption.

Significant Changes to Existing Law

This bill amends Minnesota Statutes section 272.02 by adding a new subdivision that specifically creates a tax exemption for properties owned by Indian Tribes under the outlined conditions. This is a new provision recognizing the unique status and contributions of Tribal governments.

Relevant Terms

• Property tax exemption
• Indian Tribes
• Noncommercial Tribal activities
• Federally recognized tribe
• First-class city
• Market value evaluation
• Tribal government property use