Property owned by United Way of Bemidji Area exempted from property tax and refund provided.

2025-2026 Regular Session Introduced by Bidal Duran

The bill grants a temporary 2026 property tax exemption for United Way of Bemidji Area property, with state funds reimbursing the county and refunds for taxes already paid.

Introduction and first reading, referred to Taxes

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Purpose and intent

HF 5069 proposes to exempt property owned by the United Way of Bemidji Area from property taxes payable in 2026 and to provide a state-funded refund to cover the taxes that would have been due. The bill specifies the exemption for property acquired on August 1, 2025, and creates a process for tax payments and refunds through state and local government entities.

Key provisions

Property tax exemption for United Way of Bemidji Area (2026 taxes):

The property acquired by the United Way of Bemidji Area on August 1, 2025 is exempt from property taxes for the 2026 tax year.
The county assessor must provide the United Way with an exemption application for assessment year 2025.
The United Way must file the exemption application with the county assessor by August 1, 2026.

Funding for the exemption:

An amount necessary to make a payment to the county for taxes attributable to the exemption is appropriated from the general fund to the Minnesota Commissioner of Revenue in fiscal year 2027.

Administration and timing of payments:

By August 1, 2026, the Beltrami County (the 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 disburse this payment by August 15, 2026.

Handling unpaid taxes and refunds:

If any portion of the 2026 tax remains unpaid, the county auditor must distribute the unpaid amount to local jurisdictions in proportion to the tax levied on the property for 2026.
The county auditor must also provide a refund to United Way of Bemidji Area for taxes paid in 2026 on the property.

Effective date:

The section becomes effective the day after final enactment.

Who is affected

United Way of Bemidji Area: Eligible for a 2026 property tax exemption for the specified property and eligible for a refund of any taxes paid in 2026 due to the exemption.

Beltrami County (and its auditor): Responsible for certifying the exemption amount, distributing any unpaid tax, and issuing refunds as required.

Minnesota Department of Revenue: Responsible for processing the payment to the county and administering the refund/offset as described.

Local jurisdictions in Beltrami County: Potentially receive tax distributions from any unreimbursed portion of 2026 taxes if the exemption is not fully offset.

Procedural and timeline considerations

Exemption application deadline for assessment year 2025: by August 1, 2026.

Certification deadline by Beltrami County auditor: by August 1, 2026.

Payment deadline from the Department of Revenue to the county: by August 15, 2026.

Funding to support the exemption is appropriated in fiscal year 2027, drawn from the general fund.

Effective date is the day after enactment.

Observations

The bill creates a temporary, targeted exemption tied to a 2026 tax year for property acquired on a specific date (August 1, 2025).

It includes a mechanism to route state funds to cover local tax losses and to refund taxes already paid by the United Way.

The arrangement shifts timing of funding and involves multiple agencies (county assessor, county auditor, and the Department of Revenue) to implement the exemption.

Bill