SF 1628

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; extending the exemption from 
  1.3             property tax for certain businesses that lease 
  1.4             property at certain airports; amending Minnesota 
  1.5             Statutes 1994, section 272.01, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 272.01, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  (a) When any real or personal property which is 
  1.10  exempt from ad valorem taxes, and taxes in lieu thereof, is 
  1.11  leased, loaned, or otherwise made available and used by a 
  1.12  private individual, association, or corporation in connection 
  1.13  with a business conducted for profit, there shall be imposed a 
  1.14  tax, for the privilege of so using or possessing such real or 
  1.15  personal property, in the same amount and to the same extent as 
  1.16  though the lessee or user was the owner of such property. 
  1.17     (b) The tax imposed by this subdivision shall not apply to: 
  1.18     (1) property leased or used as a concession in or relative 
  1.19  to the use in whole or part of a public park, market, 
  1.20  fairgrounds, port authority, economic development authority 
  1.21  established under chapter 469, municipal auditorium, municipal 
  1.22  parking facility, municipal museum, or municipal stadium; 
  1.23     (2) property of an airport owned by a city, town, county, 
  1.24  or group thereof which is:  
  1.25     (i) leased to or used by any person or entity including a 
  2.1   fixed base operator; and 
  2.2      (ii) used as a hangar for the storage or repair of aircraft 
  2.3   or to provide aviation goods, services, or facilities to the 
  2.4   airport or general public;. 
  2.5   the exception from taxation provided in Notwithstanding this 
  2.6   clause, does not apply to property is subject to the tax if it 
  2.7   is: 
  2.8      (i) property located at an airport owned or operated by the 
  2.9   metropolitan airports commission; or by a city of over 50,000 
  2.10  population according to the most recent federal census or such a 
  2.11  city's airport authority, except that property located at an 
  2.12  airport owned by a city of the first class located outside the 
  2.13  metropolitan area, or by its airport authority, is exempt; 
  2.14     (ii) hangars a hangar leased by a private individual, 
  2.15  association, or corporation in connection with a business 
  2.16  conducted for profit other than an aviation-related business; or 
  2.17     (iii) facilities a facility leased by a private individual, 
  2.18  association, or corporation in connection with a business for 
  2.19  profit, that consists of a major jet engine repair facility 
  2.20  financed, in whole or part, with the proceeds of state bonds and 
  2.21  located in a tax increment financing district; 
  2.22     (3) property constituting or used as a public pedestrian 
  2.23  ramp or concourse in connection with a public airport; or 
  2.24     (4) property constituting or used as a passenger check-in 
  2.25  area or ticket sale counter, boarding area, or luggage claim 
  2.26  area in connection with a public airport but not the airports 
  2.27  owned or operated by the metropolitan airports commission or 
  2.28  cities of over 50,000 population or an airport authority 
  2.29  therein.  Real estate owned by a municipality in connection with 
  2.30  the operation of a public airport and leased or used for 
  2.31  agricultural purposes is not exempt. 
  2.32     (c) Taxes imposed by this subdivision are payable as in the 
  2.33  case of personal property taxes and shall be assessed to the 
  2.34  lessees or users of real or personal property in the same manner 
  2.35  as taxes assessed to owners of real or personal property, except 
  2.36  that such taxes shall not become a lien against the property.  
  3.1   When due, the taxes shall constitute a debt due from the lessee 
  3.2   or user to the state, township, city, county, and school 
  3.3   district for which the taxes were assessed and shall be 
  3.4   collected in the same manner as personal property taxes.  If 
  3.5   property subject to the tax imposed by this subdivision is 
  3.6   leased or used jointly by two or more persons, each lessee or 
  3.7   user shall be jointly and severally liable for payment of the 
  3.8   tax. 
  3.9      (d) The tax on real property of the state or any of its 
  3.10  political subdivisions that is leased by a private individual, 
  3.11  association, or corporation and becomes taxable under this 
  3.12  subdivision or other provision of law must be assessed and 
  3.13  collected as a personal property assessment.  The taxes do not 
  3.14  become a lien against the real property. 
  3.15     Sec. 2.  [EFFECTIVE DATE.] 
  3.16     Section 1 is effective for taxes levied in 1995, payable in 
  3.17  1996, and thereafter.