1.1 	A bill for an act
1.2 	relating to taxation; property; providing a local option for granting a property 
1.3 	tax exemption for certain nonprofit child care facilities;amending Minnesota 
1.4 	Statutes 2004, section 272.02, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 272.02, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 84.Nonprofit licensed child care; local option. If approved by the governing 
1.9 	body of the city or town in which the property is located, property that is owned and 
1.10 	operated by a nonprofit organization exempt from federal income taxation under section 
1.11 	501(c)(3) of the Internal Revenue Code and used exclusively for child care purposes is 
1.12 	exempt, provided that the city or town requires all of the following conditions be met: 
1.13 	(1) the fees and charges for at least 30 percent of the children are paid in whole or in 
1.14 	part from assistance programs under chapter 119B; 
1.15 	(2) the staff must include licensed teachers; and 
1.16 	(3) no part of the net earnings of the organization inures to the benefit of any private 
1.17 	shareholders. 
1.18 	No portion of the property can be used for residential purposes on either a temporary 
1.19 	or permanent basis.

1.20 	EFFECTIVE DATE. This section is effective for assessment year 2006 and 
1.21 	thereafter, for taxes payable in 2007 and thereafter.