2008 Moratorium on Changes in Assessment Practices

On the last night of the 2008 legislative session, the Omnibus Tax Bill passed with the House version of the moratorium language and was signed by the Governor on May 29, 2008.

This is good news for Minnesota's nonprofits! The moratorium will expire on the earlier of the the enactment of legislation establishing criteria for the property taxation of purely public charities; or adjournment of the 2009 regular legislative session. The moratorium is in effect for the 2008 assessment, taxes payable in 2009.

The final language includes the following text:

Moratorium on changes in assessment practices.

(a) An assessor may not change the current practices or policies used generally in assessing property of institutions of purely public charities.

(b) An assessor may not change the assessment of the taxable status of an existing property of an organization of purely public charity, unless the change is made as a result of a change in ownership, occupancy or use of the facility, or to correct an error. For currently taxable properties, the assessor may change the estimated market value of the property.

If you'd like to read the full text of the bill, it is available online; text on the moratorium begins on line 137.35.

Also available online is the mandated report by Department of Revenue concerning assessment and taxation of property owned by institutions of purely public charity entitled Assessment and Classification Report: Institutions of Purely Public Charity.

MCN would like to thank chief authors Senator Tarryl Clark and Representative Paul Marquart, as well as the many other authors who supported our bill, including minority party leaders Representative Erik Paulsen and Senator David Senjem. As chairs of the tax committees, we would also like to thank Senator Tom Bakk and Representative Ann Lenczewski for including the moratorium in the omnibus tax bills.

Questions? Comments? Contact Jeannie Fox at jeannie@mncn.org.