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1. What kind of property may be eligible for a property tax exemption?

As a general rule, all property in the state of Minnesota is taxable, except tribal lands, unless the property is owned and used for a public purpose, education, or religious or charitable ministration. For a complete list of properties that may qualify for a property tax exemption, refer to Minnesota Statute Chapter 272, Section 02.

A partial list of the types of property that may qualify for a property tax exemption:

• Academies, colleges, universities, and seminaries of learning
• Churches, church property, and houses of worship
• Electric power distribution lines
• Institutions of purely public charity
• Manure pits certified by the State
• Personal property used primarily for the abatement and control of air, water, and land pollution
• Public burying grounds
• Public hospitals
• Public property used exclusively for public purposes
• Public schools
• Transitional housing
• Waste water treatment systems operated by a municipality
• Wind energy conversion systems

2. How do I know if an organization qualifies as an institution of purely public charity?

This is a difficult question. However, in a 1975 court case, Northstar Research Institute vs. County of Hennepin, the Minnesota Supreme Court established five factors that are often cited as guidelines for determining if an organization qualifies as an institution of purely public charity. These five factors have been expanded to six and have since been referred to as the Northstar Factors.

• Whether the stated purpose of the undertaking is to be helpful to others without immediate expectation of material reward.
• Whether the entity involved is supported by donations and gifts in whole or in part.
• Whether the recipients of the "charity" are required to pay for the assistance received in whole or in part.
• Whether the income received from gifts and donations and charges to users produces a profit to the charitable institution.
• Whether the beneficiaries of the charity are restricted or unrestricted and, if restricted, whether the class of persons to whom the charity is made available is one having a reasonable relationship to the charitable objectives and,
• Whether the dividends, in form or substance or assets upon dissolution, are available to private interest.

3. How do I apply for a property tax exemption?

All owners applying for a property tax exemption must file an application for exemption with the Chippewa County Assessor. 

Documents that may be requested are:

• Application for Property Tax Exemption (PDF) 
• Application for Property Tax Exemption - Purely Public Charity (PDF)
• Articles of Incorporation 
• Deed(s) to the property 
• A detailed written explanation of all current and intended uses of the property
• Income and Expense statements and IRS Form 990 
• Leases or other agreements for space used by individuals or other entities 
• A letter from the Internal Revenue Service granting tax exempt status under Internal Revenue Code 501(c)3 
• Other documents and records unique to a specific property

4. When does a property tax exemption begin?

Property that is subject to the general property tax on January 2nd and is acquired and used for an exempt purpose before July 1st of the same year will qualify for an exemption for that assessment year and will not pay a general property tax the following year.

5. When does a property tax exemption end?

Property that is exempt from the general property tax on January 2nd, and for any reason loses its exemption before July 1st of the same year will be placed on the assessment roll for that year. Property taxes will be due and payable the following year.  

6. Are all parcels owned by the same entity exempt from paying property taxes?

Not necessarily. Each parcel must satisfy all of the requirements for exemption. Also, a parcel that is incidental to the operation of the organization may not be eligible for exemption. There must be a necessary, substantial, and continuing use of the parcel for an exempt purpose by the organization in order for the parcel to be considered for exemption.

7. Is there a cost to file for a property tax exemption?

No. There is no cost to file for a property tax exemption.

8. Can I be assured of receiving a property tax exemption?

The county assessor will consider your request for a property tax exemption. Complete and accurate supporting documentation will aid in a decision.  

9. How long does it take to process an exempt application?

The length of time needed to process an exempt application depends on the complexity of the issues surrounding the ownership and use of the property. Applications can be approved in as little as a week or as long as three months. Please be patient. Every effort will be made to process your application as quickly as possible.

10. What happens if my request for a property tax exemption is not approved?

Whether your request for an exemption from the general property tax is approved or not, you will be notified.