1.1.................... moves to amend H.F. No. 5247, the second engrossment, as follows:
1.2Page 20, after line 6, insert:

1.3    "Sec. .... Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to
1.4read:
1.5    Subd. 108. Congressionally chartered veterans organizations. (a) The following
1.6property is exempt:
1.7(1) real property up to a maximum of three acres of land owned and used by a
1.8congressionally chartered veterans organization; provided that:
1.9(i) the organization is also a nonprofit community service oriented organization;
1.10(ii) the property is not used for residential purposes on either a temporary or permanent
1.11basis; and
1.12(iii)(A) the property is not used by the organization for a revenue-producing activity for
1.13more than six days in the calendar year preceding the year of assessment; or
1.14(B) the organization makes annual charitable contributions and donations at least equal
1.15to two-thirds of the previous year's property taxes, or equal to the previous year's property
1.16taxes that would have been due on the property had it not been exempt, and the property is
1.17allowed to be used for public and community meetings or events for no charge, as appropriate
1.18to the size of the facility; and
1.19(2) all or a portion of real property, up to a maximum of three acres, leased or rented to
1.20a congressionally chartered veterans organization, provided that:
1.21(i) the congressionally chartered veterans organization is also a nonprofit community
1.22service oriented organization;
2.1(ii) the property is not used for residential purposes on either a temporary or permanent
2.2basis; and
2.3(iii)(A) the property is not used by the organization for a revenue-producing activity for
2.4more than six days in the calendar year preceding the year of assessment; or
2.5(B) the organization makes annual charitable contributions and donations at least equal
2.6to two-thirds of the previous year's property taxes attributable to the portion of the property
2.7leased or rented by the organization, or equal to the previous year's property taxes that would
2.8have been attributable to the portion of the property leased or rented by the organization
2.9had it not been exempt, and the property is allowed to be used for public and community
2.10meetings or events for no charge, as appropriate to the size of the facility.
2.11(b) For property meeting the requirements of paragraph (a), clause (1), item (iii), subitem
2.12(B), and paragraph (a), clause (2), item (iii), subitem (B), the organization must maintain
2.13records of its charitable contributions and donations and of public meetings and events held
2.14on the property and make them available upon request any time to ensure eligibility. The
2.15assessor must make available the required charitable contributions and donations amount
2.16for a property under paragraph (a), clause (1), item (iii), subitem (B), and paragraph (a),
2.17clause (2), item (iii), subitem (B), upon request of the property owner.
2.18(c) For the purposes of this subdivision, "charitable contributions and donations,"
2.19"property taxes," "nonprofit community service oriented organization," and
2.20"revenue-producing activities" have the same meanings as provided in section 273.13,
2.21subdivision 25, paragraph (d), clause (3).
2.22(d) To claim the exemption for property meeting the requirements under paragraph (a),
2.23clause (2), the owner of the property must file an application by May 1 with the assessor
2.24for eligibility for the current year's assessment. The commissioner of revenue must prescribe
2.25a uniform application form and instructions.
2.26    (e) The commissioner of veterans affairs must annually provide a list of congressionally
2.27chartered veterans organizations to the commissioner of revenue by January 1.
2.28EFFECTIVE DATE.This section is effective beginning with property taxes payable
2.29in 2025."
2.30Page 22, after line 30, insert:

3.1    "Sec. .... Minnesota Statutes 2023 Supplement, section 273.13, subdivision 25, is amended
3.2to read:
3.3    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units
3.4and used or held for use by the owner or by the tenants or lessees of the owner as a residence
3.5for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
3.6also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
3.7under section 272.02, and contiguous property used for hospital purposes, without regard
3.8to whether the property has been platted or subdivided. The market value of class 4a property
3.9has a classification rate of 1.25 percent.
3.10    (b) Class 4b includes:
3.11    (1) residential real estate containing less than four units, including property rented as a
3.12short-term rental property for more than 14 days in the preceding year, that does not qualify
3.13as class 4bb, other than seasonal residential recreational property;
3.14    (2) manufactured homes not classified under any other provision;
3.15    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
3.16classified under subdivision 23, paragraph (b) containing two or three units; and
3.17    (4) unimproved property that is classified residential as determined under subdivision
3.1833.
3.19    For the purposes of this paragraph, "short-term rental property" means nonhomestead
3.20residential real estate rented for periods of less than 30 consecutive days.
3.21    The market value of class 4b property has a classification rate of 1.25 percent.
3.22    (c) Class 4bb includes:
3.23    (1) nonhomestead residential real estate containing one unit, other than seasonal
3.24residential recreational property;
3.25    (2) a single family dwelling, garage, and surrounding one acre of property on a
3.26nonhomestead farm classified under subdivision 23, paragraph (b); and
3.27    (3) a condominium-type storage unit having an individual property identification number
3.28that is not used for a commercial purpose.
3.29    Class 4bb property has the same classification rates as class 1a property under subdivision
3.3022.
4.1    Property that has been classified as seasonal residential recreational property at any time
4.2during which it has been owned by the current owner or spouse of the current owner does
4.3not qualify for class 4bb.
4.4    (d) Class 4c property includes:
4.5    (1) except as provided in subdivision 22, paragraph (c), real and personal property
4.6devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
4.7for not more than 250 days in the year preceding the year of assessment. For purposes of
4.8this clause, property is devoted to a commercial purpose on a specific day if any portion of
4.9the property is used for residential occupancy, and a fee is charged for residential occupancy.
4.10Class 4c property under this clause must contain three or more rental units. A "rental unit"
4.11is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
4.12equipped with water and electrical hookups for recreational vehicles. A camping pad offered
4.13for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
4.14under this clause regardless of the term of the rental agreement, as long as the use of the
4.15camping pad does not exceed 250 days. In order for a property to be classified under this
4.16clause, either (i) the business located on the property must provide recreational activities,
4.17at least 40 percent of the annual gross lodging receipts related to the property must be from
4.18business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
4.19bookings by lodging guests during the year must be for periods of at least two consecutive
4.20nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
4.21providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
4.22and must be located in a township or a city with a population of 2,500 or less located outside
4.23the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
4.24of a state trail administered by the Department of Natural Resources. For purposes of item
4.25(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
4.26property also includes commercial use real property used exclusively for recreational
4.27purposes in conjunction with other class 4c property classified under this clause and devoted
4.28to temporary and seasonal residential occupancy for recreational purposes, up to a total of
4.29two acres, provided the property is not devoted to commercial recreational use for more
4.30than 250 days in the year preceding the year of assessment and is located within two miles
4.31of the class 4c property with which it is used. In order for a property to qualify for
4.32classification under this clause, the owner must submit a declaration to the assessor
4.33designating the cabins or units occupied for 250 days or less in the year preceding the year
4.34of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
4.35share of the land on which they are located must be designated class 4c under this clause
5.1as otherwise provided. The remainder of the cabins or units and a proportionate share of
5.2the land on which they are located will be designated as class 3a. The owner of property
5.3desiring designation as class 4c property under this clause must provide guest registers or
5.4other records demonstrating that the units for which class 4c designation is sought were not
5.5occupied for more than 250 days in the year preceding the assessment if so requested. The
5.6portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
5.7or meeting room, and (5) other nonresidential facility operated on a commercial basis not
5.8directly related to temporary and seasonal residential occupancy for recreation purposes
5.9does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
5.10means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
5.11ski equipment; providing marina services, launch services, or guide services; or selling bait
5.12and fishing tackle;
5.13    (2) qualified property used as a golf course if:
5.14    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
5.15but a membership fee may not be required in order to use the property for golfing, and its
5.16green fees for golfing must be comparable to green fees typically charged by municipal
5.17courses; and
5.18    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
5.19    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
5.20the golf course is classified as class 3a property;
5.21    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
5.22community service oriented organization and not used for residential purposes on either a
5.23temporary or permanent basis, provided that:
5.24    (i) the property is not used for a revenue-producing activity for more than six days in
5.25the calendar year preceding the year of assessment; or
5.26    (ii) the organization makes annual charitable contributions and donations at least equal
5.27to the property's previous year's property taxes and the property is allowed to be used for
5.28public and community meetings or events for no charge, as appropriate to the size of the
5.29facility.
5.30    For purposes of this clause:
5.31    (A) "charitable contributions and donations" has the same meaning as lawful gambling
5.32purposes under section 349.12, subdivision 25, excluding those purposes relating to the
5.33payment of taxes, assessments, fees, auditing costs, and utility payments;
6.1    (B) "property taxes" excludes the state general tax;
6.2    (C) a "nonprofit community service oriented organization" means any corporation,
6.3society, association, foundation, or institution organized and operated exclusively for
6.4charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
6.5federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
6.6Revenue Code; and
6.7    (D) "revenue-producing activities" shall include but not be limited to property or that
6.8portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
6.9liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
6.10alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
6.11insurance business, or office or other space leased or rented to a lessee who conducts a
6.12for-profit enterprise on the premises.
6.13    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
6.14use of the property for social events open exclusively to members and their guests for periods
6.15of less than 24 hours, when an admission is not charged nor any revenues are received by
6.16the organization shall not be considered a revenue-producing activity.
6.17    The organization shall maintain records of its charitable contributions and donations
6.18and of public meetings and events held on the property and make them available upon
6.19request any time to the assessor to ensure eligibility. An organization meeting the requirement
6.20under item (ii) must file an application by May 1 with the assessor for eligibility for the
6.21current year's assessment. The commissioner shall prescribe a uniform application form
6.22and instructions;
6.23    (4) postsecondary student housing of not more than one acre of land that is owned by a
6.24nonprofit corporation organized under chapter 317A and is used exclusively by a student
6.25cooperative, sorority, or fraternity for on-campus housing or housing located within two
6.26miles of the border of a college campus;
6.27    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
6.28manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
6.29defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
6.303a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision
6.312;
6.32    (6) real property that is actively and exclusively devoted to indoor fitness, health, social,
6.33recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
6.34located within the metropolitan area as defined in section 473.121, subdivision 2;
7.1    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
7.2section 272.01, subdivision 2, and the land on which it is located, provided that:
7.3    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
7.4Airports Commission, or group thereof; and
7.5    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
7.6premise, prohibits commercial activity performed at the hangar.
7.7    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
7.8filed by the new owner with the assessor of the county where the property is located within
7.960 days of the sale;
7.10    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
7.11272.01, subdivision 2, and the land on which it is located, provided that:
7.12    (i) the land abuts a public airport; and
7.13    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
7.14restricting the use of the premises, prohibiting commercial use or activity performed at the
7.15hangar; and
7.16    (9) residential real estate, a portion of which is used by the owner for homestead purposes,
7.17and that is also a place of lodging, if all of the following criteria are met:
7.18    (i) rooms are provided for rent to transient guests that generally stay for periods of 14
7.19or fewer days;
7.20    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
7.21the basic room rate;
7.22    (iii) meals are not provided to the general public except for special events on fewer than
7.23seven days in the calendar year preceding the year of the assessment; and
7.24    (iv) the owner is the operator of the property.
7.25    The market value subject to the 4c classification under this clause is limited to five rental
7.26units. Any rental units on the property in excess of five, must be valued and assessed as
7.27class 3a. The portion of the property used for purposes of a homestead by the owner must
7.28be classified as class 1a property under subdivision 22;
7.29    (10) real property up to a maximum of three acres and operated as a restaurant as defined
7.30under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
7.31section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
7.32commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
8.1of its annual gross receipts from business conducted during four consecutive months. Gross
8.2receipts from the sale of alcoholic beverages must be included in determining the property's
8.3qualification under item (ii). The property's primary business must be as a restaurant and
8.4not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
8.5Owners of real property desiring 4c classification under this clause must submit an annual
8.6declaration to the assessor by February 1 of the current assessment year, based on the
8.7property's relevant information for the preceding assessment year;
8.8(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
8.9a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
8.10and devoted to recreational use for marina services. The marina owner must annually provide
8.11evidence to the assessor that it provides services, including lake or river access to the public
8.12by means of an access ramp or other facility that is either located on the property of the
8.13marina or at a publicly owned site that abuts the property of the marina. No more than 800
8.14feet of lakeshore may be included in this classification. Buildings used in conjunction with
8.15a marina for marina services, including but not limited to buildings used to provide food
8.16and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
8.17as class 3a property; and
8.18(12) real and personal property devoted to noncommercial temporary and seasonal
8.19residential occupancy for recreation purposes.
8.20    Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
8.21each parcel of noncommercial seasonal residential recreational property under clause (12)
8.22has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
8.23under clause (5), item (i), have the same classification rate as class 4b property, the market
8.24value of manufactured home parks assessed under clause (5), item (ii), have a classification
8.25rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
8.26shareholders in the cooperative corporation or association and a classification rate of one
8.27percent if 50 percent or less of the lots are so occupied, and class I manufactured home
8.28parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,
8.29(iii) commercial-use seasonal residential recreational property and marina recreational land
8.30as described in clause (11), has a classification rate of one percent for the first $500,000 of
8.31market value, and 1.25 percent for the remaining market value, (iv) the market value of
8.32property described in clause (4) has a classification rate of one percent, (v) the market value
8.33of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
8.34and (vi) that portion of the market value of property in clause (9) qualifying for class 4c
8.35property has a classification rate of 1.25 percent, and (vii) property qualifying for
9.1classification under clause (3) that is owned or operated by a congressionally chartered
9.2veterans organization has a classification rate of one percent. The commissioner of veterans
9.3affairs must provide a list of congressionally chartered veterans organizations to the
9.4commissioner of revenue by June 30, 2017, and by January 1, 2018, and each year thereafter.
9.5    (e) Class 4d property includes:
9.6    (1) qualifying low-income rental housing certified to the assessor by the Housing Finance
9.7Agency under section 273.128, subdivision 3. If only a portion of the units in the building
9.8qualify as low-income rental housing units as certified under section 273.128, subdivision
9.93, only the proportion of qualifying units to the total number of units in the building qualify
9.10for class 4d(1). The remaining portion of the building shall be classified by the assessor
9.11based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying
9.12low-income rental housing units are to the total units in the building. For all properties
9.13qualifying as class 4d(1), the market value determined by the assessor must be based on the
9.14normal approach to value using normal unrestricted rents; and
9.15(2) a unit that is owned by the occupant and used as a homestead by the occupant, and
9.16otherwise meets all the requirements for community land trust property under section 273.11,
9.17subdivision 12, provided that by December 31 of each assessment year, the community land
9.18trust certifies to the assessor that (i) the community land trust owns the real property on
9.19which the unit is located, and (ii) the unit owner is a member in good standing of the
9.20community land trust. For all units qualifying as class 4d(2), the market value determined
9.21by the assessor must be based on the normal approach to value without regard to any
9.22restrictions that apply because the unit is a community land trust property.
9.23    (f) Class 4d(1) property has a classification rate of 0.25 percent. Class 4d(2) property
9.24has a classification rate of 0.75 percent.
9.25EFFECTIVE DATE.This section is effective beginning with property taxes payable
9.26in 2025."
9.27Renumber the sections in sequence and correct the internal references
9.28Amend the title accordingly