Property tax refund program established for child care providers that rent a child care facility, report required, and money appropriated.
Summary
HF805 creates a new property tax refund program for certain child care providers that rent their facilities. The bill defines an “eligible child care facility” as a licensed child care center or family day care/group family day care site operated by a 501(c)(3) nonprofit that accepts families using the child care assistance program. It then defines “eligible child care property” as the portion of a property used to operate that facility and for which rent is paid.
Under the bill, an eligible child care facility may claim a refund equal to 10 percent of gross rent paid in a calendar year for eligible child care property, limited to rent paid in cash or cash equivalent. The facility must apply in the following calendar year, and the commissioner of revenue must pay the refund under the existing property tax refund payment schedule. The bill also requires property owners to furnish certificates of rent paid to eligible child care facilities, similar to the existing certificate requirement for manufactured home park owners, and creates a special rule for 2024 rent certificates due by July 31, 2025.
Impact
The bill amends Minnesota Statutes chapter 290A, which governs property tax refunds, by expanding the definition of gross rent to include rent for eligible child care property and by adding a new refund category for qualifying child care facilities. It also adds a corresponding general fund appropriation to pay the refunds and requires the Department of Revenue to issue a report by March 1, 2026 estimating the share of rent that constitutes property taxes for these facilities, with geographic breakdowns where feasible. The bill would affect nonprofit child care providers that lease space, their landlords, and the Department of Revenue’s administration of property tax refund claims and rent certificate reporting.
Sentiment
Based on the bill text and available context, the measure appears generally supportive of child care providers and intended to reduce operating costs for nonprofit facilities that rent their space. The bill has bipartisan authorship, which suggests some cross-party interest in the policy. No committee transcript or recorded votes were provided, so there is no direct evidence of opposition or support beyond the bill’s structure and sponsorship.
Contention
The main policy question in the bill is the size and design of the refund, since the commissioner’s report is specifically tasked with estimating what share of rent actually reflects property taxes and may recommend modifications to the refund percentage. That indicates potential concern about whether a flat 10 percent refund accurately matches the tax burden embedded in rent. Another likely point of contention is eligibility: the bill limits the program to licensed child care facilities operated by 501(c)(3) nonprofits that accept child care assistance program families, which excludes for-profit providers and other child care settings. Administrative burden on property owners is also addressed in the bill, suggesting lawmakers were aware of compliance concerns.