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SF 5206

Certain property owned by the United Way of Bemidji Area tax exemption and refund provision of property taxes paid

2025-2026 Regular Session Introduced by Steve Green

The bill grants a one-time 2026 property tax exemption for United Way of Bemidji Area property acquired Aug 1, 2025, with funding and refunds arranged.

Referred to Taxes
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WeVote Research Nonpartisan
Bill Summary · SF 5206

Summary: SF 5206 (2025-2026) — Property Tax Exemption and Refund for United Way of Bemidji Area

Purpose and Intent

This bill seeks to exempt certain property owned by the United Way of Bemidji Area from property taxes payable in 2026 and to provide a mechanism for funding the exemption and refund of taxes paid. The exemption applies to property acquired by the United Way of Bemidji Area on August 1, 2025.

Key Provisions

  • Property Tax Exemption

    • Property acquired by the United Way of Bemidji Area on August 1, 2025 is exempt from property taxes payable in 2026.
    • The Beltrami County assessor is required to provide the United Way with an exemption application for the 2025 assessment year.
    • The United Way must file the exemption application with the county assessor by August 1, 2026 to qualify for the exemption.

  • Funding and Payment of the Exemption

    • An amount necessary to make a payment to the county for the property taxes attributed to the exemption is appropriated from the Minnesota General Fund to the commissioner of revenue in fiscal year 2027.
    • By August 1, 2026, the Beltrami County auditor must certify to the commissioner of revenue the amount to be paid to the county under the exemption.
    • The commissioner of revenue must make the payment by August 15, 2026.

  • Tax Distribution and Refund

    • For any unpaid portion of the 2026 property tax due on the exempt property, the county auditor must distribute the payment to local jurisdictions in proportion to the amount of tax levied on the property for property taxes payable in 2026.
    • The county auditor must also refund any taxes paid by the United Way of Bemidji Area for property taxes payable in 2026 on the exempt property.

  • Effective Date

    • The section becomes effective the day after final enactment.

Who is Affected

  • United Way of Bemidji Area: Eligible property acquired on August 1, 2025 may be exempt from 2026 property taxes, subject to filing deadlines and verification.
  • Beltrami County (and its Auditor/Assessor): Responsible for confirming eligibility, processing exemption applications, certifying payment amounts, and distributing any remaining tax obligations and refunds.
  • Minnesota Department of Revenue: Responsible for administering the payment to the county, and distributing the funds to local jurisdictions if taxes remain unpaid.

Procedural and Timeline Details

  • Exemption eligibility hinges on property acquired on August 1, 2025.
  • Exemption application provided by the county assessor to the United Way for the 2025 assessment year; United Way must file by August 1, 2026.
  • Financial appropriations: A specific amount to fund the exemption is appropriated from the General Fund to the commissioner of revenue in FY 2027.
  • Payments: Certification by the county auditor to the commissioner by August 2026; payment to the county by August 15, 2026.
  • Tax refunds: Any taxes already paid for 2026 on the exempt property must be refunded to the United Way; unpaid 2026 taxes attributed to the exemption may be distributed to local jurisdictions proportionally.

Observations

  • The bill creates a targeted, one-time property tax exemption for a specific United Way property and provides a funding mechanism to reimburse the affected county and to refund taxes paid.
  • It establishes specific deadlines for applications, certifications, and payments tied to the 2025 and 2026 assessment/tax cycle.
  • The measure uses general fund appropriations in a future fiscal year (FY 2027) to support the exemption.

If you’d like, I can provide a plain-language checklist of steps for the United Way, county officials, and the Department of Revenue to track compliance with the bill.

Compiled from official sources — confirm details with the bill’s official record.

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