1.1 	A bill for an act
1.2 	relating to taxation; property; exempting certain
1.3 	qualifying property used for educational instruction.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. PROPERTY USED FOR EDUCATIONAL INSTRUCTION.
 1.6 	Notwithstanding Minnesota Statutes, section 272.02,
1.7 	subdivision 38, paragraph (b), the following property is exempt
1.8 	from taxation for assessment year 2004, for taxes payable in
1.9 	2005, if it meets all the following criteria:
1.10 	(1) is used to provide direct educational instruction for
1.11 	grades 7 through 12;
1.12 	(2) is located in a city of the first class that has a
1.13 	population greater than 250,000 and less than 350,000;
1.14 	(3) was purchased after July 1, 2004, by a nonprofit that
1.15 	is exempt from federal income tax under section 501(c)(3) of the
1.16 	Internal Revenue Code; and 
1.17 	(4) is leased and operated by two nonprofit corporations
1.18 	organized under Minnesota Statutes, chapter 317A.

1.19 	EFFECTIVE DATE. This section is effective the day
1.20 	following final enactment.