From the Minnesota Council on Nonprofits:
A Minnesota Supreme Court decision in December in Under the Rainbow Child Care Center vs. County of Goodhue narrowed the definition of “organizations of purely public charity” that is used in determining property tax exemption. But on the last night of the 2008 legislative session, the Omnibus Tax Bill passed with the House version of the moratorium language.
The final language includes the following text:
Moratorium on changes in assessment practices.
(a) An assessor may not change the current practices or policies used generally in assessing property of institutions of purely public charities.
(b) An assessor may not change the assessment of the taxable status of an existing property of an organization of purely public charity, unless the change is made as a result of a change in ownership, occupancy or use of the facility, or to correct an error. For currently taxable properties, the assessor may change the estimated market value of the property.
(c) This subdivision expires on the earlier of:
(1) the enactment of legislation establishing criteria for the property taxation of purely public charities; or
(2) adjournment of the 2009 regular legislative session to a date in calendar year.
MCN will meet with nonprofits and with the Department of Revenue and assessors this summer to work on language for a more permanent legislative solution for 2009. If you are interested in participating in this solution, contact MCN.
