HF 5266 Summary

• Amends Minnesota Statutes section 272.02 to clarify that charitable organizations must satisfy six factors to qualify for property tax exemption, with allowance for reasonable justification to fail factors (2), (3), or (5)

• Defines "grant" as a written instrument or electronic document transferring cash or value to support a public purpose, excluding direct contracts or purchases for the granting agency's benefit

• Excludes rent assistance to tenants and government financing assistance or tax credits for affordable housing units from counting as gifts or donations when determining exemption eligibility for rental housing operators

• Creates new subdivision 7a establishing that property owned by an eligible charity is exempt if a substantial part is actually occupied by charity personnel furthering the charitable purpose

• Effective date for all changes is taxes payable in 2025 and thereafter