Legion halls across Minnesota could face closure without relief, House panel hears

Many American Legions across the state, including in Coon Rapids, Marshall, Northfield, Stillwater and Waite Park, have had to sell their post to survive.

More may not be far behind.

“The American Legion in Minnesota has 531 posts, but more than half of these already do not have buildings,” Carl Moon, department commander of the Minnesota American Legion, told the House Veterans and Military Affairs Division Wednesday. Of the 260 posts with buildings, several are at risk of closing because of taxes.

Rep. Peggy Bennett (R-Albert Lea) aims to help by sponsoring HF195.

It would create a property tax exemption for certain property owned by a congressionally chartered veterans service organization, such as a VFW or American Legion.

A 2017 law, Bennett said, reduced property taxes for such organizations to 1%, but they’ve continued struggling to remain open, especially post-pandemic.

“I hope for your support to get this bill passed, to help posts like ours survive because without it we won’t,” said Alan Skramstad, adjutant of Lee Goldsmith Post 201 in Mora.

Receiving division approval, the bill’s next stop is the House Taxes Committee. No fiscal note was provided.

Many 501(c)(3) nonprofit organizations receive property tax exemptions after qualifying through their county assessor, Moon said. Veterans’ organizations are classified as 501(c)(4) or 501(c)(19).

“We’re asking for the same tax exemptions as provided to 501(c)(3)s,” he said.

Supporters emphasized that posts are far more than just a drinking and gambling establishment, for which they are often perceived.

Moon and VFW State Commander David Staehlin cited as examples making community meeting rooms available to the public, hosting wedding receptions, veterans training for things like suicide awareness, and providing funds for local fire departments, youth sports teams and other community wants.