February 26, 2003
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Department of Revenue Correspondence: Exempt Property REVENUE CORRESPONDENCE: Exempt Property Any correspondence posted within this file is deemed to be accurate and a true representation of the answer as of the date the original document was issued. The Department of Revenue will make every attempt to ensure letters that are no longer accurate due to law or policy changes are removed in a timely manner. If you find a document that you believe is no longer accurate due to a change in law or policy, please direct your concerns to us at [email protected] and we will attempt to resolve the situation. Please understand that all answers are based on the specific question asked. If any of the facts of the situation change, our opinion will be subject to change as well. Note: 2019 legislative session changes are summarized in the DOR legislative summary. Click here to view the summary. This document is intended to be used as a supplement to the Property Tax Administrator’s Manual, Module 5: Exempt Property. Updated May 2021 *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property Exempt Applications *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property January 21, 2016 Steve Hurni Property Tax Compliance Officer [email protected] Dear Mr. Hurni: Thank you for submitting your question to the Property Tax Division regarding exempt entities. You have provided the following questions. Question 1: Are exempt entities that are eligible for payment in lieu of taxes (PILT) required to file an exempt application every three years? Answer 1: No, PILT eligible lands are not required to re-file exempt applications (as PILT organizations) because they are owned by government entities. Minnesota Statutes 272.025 describes application requirements for exempt property and political subdivisions are not required to re-file every three years. Question 2: Do Housing and Redevelopment Authority (HRA) owned properties need to re-file for exemption every 3 years? Answer 2: HRA-owned property is not required to re-file exempt applications every 3 years for the same reasons above. However, assessors may request information necessary to grant an exemption. If you have any further questions, please contact our division at [email protected]. Sincerely, Ricardo Perez State Program Administrator Property Tax Phone: 651-556-4753 Email: [email protected] 600 N. Robert St., St. Paul, MN 55146 An equal opportunity employer www.revenue.state.mn.us If you have a disability, we will provide this material in an alternate format *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property November 6, 2017 Angela VanZee Pope County Assessor’s Office [email protected] Dear Ms. VanZee, Thank you for submitting your questions to the Property Tax Division regarding exemption of manure pits. You have provided the following questions: Question 1: Does the exemption need to be applied for yearly, every three years, or just once? Answer 1: After the initial application has been filed and accepted by the county assessor, owners or authorized representatives must reapply for exemption every three years. No matter what year the owner or authorized entity originally filed for exemption, reapplications for property tax exemption must be filed in 2019, 2022, 2025, etc. Please note that this reapplication requirement could change due to a recent law change that will go into effect for applications for exemption beginning in 2018. The commissioner will annually publish, on it’s website, by January 1 which organizations must file applications or reapplications pursuant to Minnesota Statute 272.025. Once the list is published, county assessors will be notified. Question 2: Is the entire building exempt when it qualifies for an exemption or just the manure pit? Answer 2: According to MN statute, the actual manure pit and appurtenances, including slatted floors and pipes, are exempt as long as they are installed and/or operated in accordance with a permit, order, or certificate of compliance as issued by the Minnesota Pollution Control Agency (MPCA). Determining if the building qualifies for exemption is based on its ownership, use, and necessity of ownership. For example, the Department of Revenue has issued guidance relating to a manure pit under a hog barn. The department determined that the hog barn was not exempt from property taxes, as the primary use of the property was still as a hog barn. The presence of the manure pit did not automatically allow for an exemption. Question 3: Does the County Assessor or the Commissioner of the Department of Revenue approve the application? Answer 3: Only the County Assessor has legal authority to sign and approve applications for exemption. The Commissioner of Revenue may only extend the time for filing an exemption application in cases where the applicant has extenuating circumstances preventing timely filling (i.e. sickness, absence, disability or other good cause). If you have any further questions, please contact our division at [email protected]. Sincerely, *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property Information & Education Section Property Tax Division *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property Assessor Duties *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property July 2, 2003 Carol Schutz Chippewa County Assessor Courthouse 629 North 11th Street Montevideo, Minnesota 56265 Dear Carol: In a recent email you asked how exempt property should be valued. Should it be valued each year as a part of the quintile (formerly quartile) assessment, or should it be assessed in its entirety once every six years? In our opinion, exempt property should be assessed in its entirety once every six years. It should not be included as a part of the quintile assessment. If exempt property were to be valued as a part of the quintile, the assessor would have to annually adjust the values of all properties not assessed in the quintile assessment so that all properties were valued on the same basis. MS 273.18 provides that exempt property is to be assessed “In every sixth year after the year 1926, ….” In our opinion, it is much more practical to distribute the assessment of taxable real and personal property within the quintile assessment. Exempt property should be assessed as provided for by statute - in its entirety once every sixth year. Very truly yours, JOHN F. HAGEN, Manager Information and Education Section Property Tax Division Phone (651) 296-0336 e-mail: [email protected] *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property August 12, 2015 Steve Hurni Property Tax Compliance Officer [email protected] Dear Mr. Hurni: Thank you for submitting your question to the Property Tax Division regarding exempt application requirements for cemeteries. You have provided the following scenario and question. Scenario: Reapplications for property tax exemption must be filed in 2016 so questions have come up regarding requirements on what types of property need to reapply. Question: Are cemetery properties required to continue to reapply every three years for exemption? Answer: Cemetery properties are included in the exempt properties required to reapply for exemption every three years. Though most exempt properties must reapply for the exemption, there are a number of property types that this requirement does not apply to. Burial grounds, however, are not one of these property types. If you have any further questions, please contact our division at [email protected]. Sincerely, Emily Hagen State Program Administrator Information and Education Section Property Tax Division Phone: 651-556-6099 Email: [email protected] 600 N. Robert St., St. Paul, MN 55146 An equal opportunity employer www.revenue.state.mn.us If you have a disability, we will provide this material in an alternate format *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property Assisted Living Facilities *Updated 5/31/2021 - See Disclaimer on Front Cover* Department of Revenue Correspondence: Exempt Property March 24, 2005 Marcy Barritt, Murray County Assessor P.O. Box 57 2500 28th Street Slayton, Minnesota 56172-0057 Dear Marcy: Your e-mail question to John Hagen has been forwarded to me for reply. You have asked if we would be issuing specific criteria for determining the taxable or exempt status on congregate care and assisted living facilities in light of the Peterson Estates court case in Cottonwood County. You have also asked if you should review the congregate care facility that is attached to the nursing home in Fulda Minnesota, which we reviewed back in 1995. As you know, there is no specific statutory exemption for congregate care or assisted living facilities in Minnesota. Therefore, they must attempt to qualify under one of the other provisions for exemption. The most likely provision is that for institutions of purely public charity. Without question, this is the most difficult exemption decision to make since Minnesota statutes do not specifically define what is or is not an institution of purely public charity. However, guidance does come from the 1975 Supreme Court Decision, North Star Research Institute vs. County of Hennepin. As of now, we do not intend to issue additional formal directions to assessors. We issued an Elderly Assisted Living Care Bulletin in 2000 (copy enclosed). Since then, we have developed checklists for assessors to use when trying to make determinations of taxable status of assisted living facilities as well as other purely public charities (copies enclosed). In addition, we developed and presented a seminar at the MAAO Fall Conference in 2002.