Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or 4, tax-exempt property held under a lease for a term of at least one year, and not taxable under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be considered, for all purposes of taxation, as the property of the person holding it. In this subdivision, "tax-exempt property" means property owned by the United States, the state or any of its political subdivisions, a school, or any religious, scientific, or benevolent society or institution, incorporated or unincorporated, or any corporation whose property is not taxed in the same manner as other property. This subdivision does not apply to property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses (2), (3), and (4), or to property exempt from taxation under section 272.0213.
Subd. 1a. Lease defined. For purposes of this section, a lease includes any agreement, except a cooperative farming agreement pursuant to section 97A.135, subdivision 3, or a lease executed pursuant to section 272.68, subdivision 4, permitting a nonexempt person or entity to use the property, regardless of whether the agreement is characterized as a lease. A lease has a "term of at least one year" if the term is for a period of less than one year and the lease permits the parties to renew the lease without requiring that similar terms for leasing the property will be offered to other applicants or bidders through a competitive bidding or other form of offer to potential lessees or users.
Subd. 2. Seaway port authority property; exception. The provisions of subdivision 1 shall not apply to any property owned by a seaway port authority exempt from taxation under the provisions of section 272.01, subdivision 3.
Subd. 3. Property located within a federal reservation. The net tax capacity of property held under a lease for a term of at least one year which (i) is located within a federal reservation; (ii) has been conveyed to the state of Minnesota by the federal government; and (iii) had been occupied and used by a branch of the armed services of the United States, shall be no greater than the value added to the property by improvements to the property made by the lessee.
Subd. 4. Property located within a national park. Property held under a lease for a term of at least one year which is owned by the United States and located within a national park shall be exempt, provided the property was acquired by the United States by condemnation or purchased by the United States under threat of condemnation, and within a reasonable time leased back for noncommercial residential purposes to the person owning the property at the time of acquisition by the United States. If property exempt under this subdivision is subsequently leased or subleased for a term of at least one year to another person, it shall no longer qualify for the exemption provided in this subdivision and shall be placed on the assessment rolls as provided in section 272.02, subdivision 38, and taxed pursuant to subdivision 1 of this section.
The value of improvements made to property otherwise exempt pursuant to this subdivision which are owned by the lessee or to which the lessee has salvage rights shall be taxable to the lessee pursuant to subdivision 1.
Subd. 5. [Repealed, 2005 c 151 art 5 s 46]
(1996) RL s 813; Ex1959 c 1 s 2; 1967 c 865 s 2; 1978 c 756 s 1,2; 1980 c 607 art 2 s 16; 1Sp1981 c 1 art 2 s 13,14; 1984 c 502 art 3 s 15; 1985 c 300 s 9; 1987 c 268 art 8 s 4-7; 1988 c 719 art 5 s 84; 1989 c 239 s 2; 1989 c 329 art 13 s 20; 1990 c 391 art 8 s 34; 2005 c 151 art 5 s 23; 2008 c 366 art 6 s 31; 2013 c 143 art 17 s 10
Structure Minnesota Statutes
Chapters 272 - 289 — Property Taxes
Chapter 273 — Taxes; Listing, Assessment
Section 273.01 — Listing And Assessment, Time.
Section 273.02 — Omitted Property.
Section 273.03 — Real Estate; Assessment; Method.
Section 273.032 — Market Value Definition.
Section 273.05 — Assessors; Appointment, Term, And Oath.
Section 273.051 — City Assessors, Term.
Section 273.052 — Appointment; Application.
Section 273.053 — Assessment; Expenses.
Section 273.0535 — County Or Local Assessing District To Assume Cost Of Training.
Section 273.054 — Duties And Powers Of Assessor.
Section 273.055 — Resolution To Appoint Assessor; Termination Of Local Assessor's Office.
Section 273.056 — Revocation Of County Assessor's Election; Local Assessors.
Section 273.06 — Deputy Assessors.
Section 273.061 — Establishment Of Office For Each County.
Section 273.062 — Valuation And Assessment Of Personal Property.
Section 273.063 — Application; Limitations.
Section 273.064 — Examination Of Local Assessor's Work; Completion Of Assessments.
Section 273.0645 — Commissioner Review Of Assessment Practices.
Section 273.065 — Delivery Of Assessment Appraisal Records; Extensions.
Section 273.072 — Agreements For Joint Assessment.
Section 273.0755 — Training And Education Of Property Tax Personnel.
Section 273.08 — Assessor's Duties.
Section 273.10 — School Districts.
Section 273.105 — Internal Revenue Code.
Section 273.11 — Valuation Of Property.
Section 273.1101 — Valuation, Terminology In Statutes, Laws Or Charters.
Section 273.1102 — Rate Of Tax, Terminology Of Laws Or Charters.
Section 273.1104 — Iron Ore, Value.
Section 273.1108 — Annual Report On Agricultural Valuation And Classification.
Section 273.111 — Agricultural Property Tax.
Section 273.1115 — Aggregate Resource Preservation Property Tax Law.
Section 273.112 — Private Outdoor Recreational, Open Space And Park Land Tax.
Section 273.113 — Tax Credit For Property In Proposed Bovine Tuberculosis Modified Accredited Zone.
Section 273.114 — Rural Preserve Property Tax Program.
Section 273.117 — Conservation Property Tax Valuation.
Section 273.118 — Tax Paid In Recognition Of Congressional Medal Of Honor.
Section 273.119 — Conservation Tax Credit.
Section 273.12 — Assessment Of Real Property.
Section 273.121 — Valuation Of Real Property, Notice.
Section 273.1231 — Tax Relief For Destroyed Property; Definitions.
Section 273.1232 — Tax Relief For Destroyed Property; General Provisions.
Section 273.1233 — Tax Relief For Destroyed Property; Local Option Disaster Abatement.
Section 273.1234 — Tax Relief For Destroyed Property; Homestead And Disaster Credits.
Section 273.1235 — Tax Relief For Destroyed Property; Local Option Disaster Credits.
Section 273.124 — Homestead Determination; Special Rules.
Section 273.1245 — Classification Of Data.
Section 273.125 — Assessment Of Manufactured Homes.
Section 273.128 — Certification Of Low-income Rental Property.
Section 273.13 — Classification Of Property.
Section 273.1315 — Certification Of Class 1b Property.
Section 273.1319 — Single Family Housing; Noncompliance; Minneapolis And St. Paul.
Section 273.1321 — Vacant Commercial Industrial Properties.
Section 273.1325 — Adjustment Of Net Tax Capacity.
Section 273.134 — Taconite And Iron Ore Areas; Tax Relief Area; Definitions.
Section 273.1341 — Taconite Assistance Area.
Section 273.1342 — Electric Generating Plants In Taconite Tax Relief Areas.
Section 273.135 — Homestead Property Tax Relief.
Section 273.136 — Taconite Property Tax Relief Account; Replacement Of Revenue.
Section 273.1384 — Agricultural Homestead Market Value Credit.
Section 273.1387 — School Building Bond Agricultural Credit.
Section 273.1391 — Supplementary Homestead Property Tax Relief.
Section 273.1392 — Payment; School Districts.
Section 273.1393 — Computation Of Net Property Taxes.
Section 273.1398 — Disparity Reduction Aid And Credit.
Section 273.16 — Determination Of Classification.
Section 273.165 — Taxation Of Separate Mineral Interests And Unmined Iron Ore.
Section 273.1651 — Taxation And Forfeiture Of Stockpiled Metallic Minerals Material.
Section 273.17 — Assessment Of Real Property.
Section 273.18 — Listing, Valuation, And Assessment Of Exempt Property By County Auditors.
Section 273.19 — Lessees And Equitable Owners.
Section 273.20 — Assessor May Enter Dwellings, Buildings, Or Structures.
Section 273.21 — Neglect By Auditor Or Assessor; Penalty.
Section 273.25 — Lists To Be Verified.
Section 273.26 — Personal Property; Where Listed.
Section 273.32 — Elevators And Warehouses On Railroad.
Section 273.33 — Express, Stage And Transportation Companies; Pipelines.
Section 273.35 — Gas And Water Companies.
Section 273.36 — Electric Light And Power Companies.
Section 273.37 — Companies Supplying Electric Power.
Section 273.371 — Reports Of Utility Companies.
Section 273.3711 — Recommended And Ordered Values.
Section 273.372 — Proceedings And Appeals; Utility Or Railroad Valuations.
Section 273.38 — Percentage Of Assessments; Exceptions.
Section 273.40 — Annual Tax On Cooperative Associations.
Section 273.41 — Amount Of Tax; Distribution.
Section 273.42 — Rate Of Tax; Entry And Certification; Credit On Payment; Property Tax Credit.
Section 273.425 — Adjustment Of Levy.
Section 273.43 — Personal Property Of Certain Companies, Where Listed.
Section 273.46 — Assignees And Receivers.
Section 273.47 — Property Moved Between January And March.
Section 273.48 — Where Listed In Case Of Doubt.
Section 273.50 — Lists May Be Destroyed.
Section 273.51 — [Impliedly repealed, see Bemis Bro Bag Co v Wallace 197 Minn 216, 266 NW 690]
Section 273.65 — Failure To List; Examination Under Oath; Duties Of Assessor.
Section 273.66 — Owner Absent Or Sick.
Section 273.67 — Procedure When Owner Does Not List Or Is Not Sworn.