Bill calls for zero property taxes for posts

ST. PAUL — Posts of veteran service organizations do so much charitable work for their local communities, yet meanwhile struggle with the burden of property taxes.
The Senate Taxes Committee on Thursday, Jan. 23, heard a bill that aims to exempt posts of The American Legion and other congressionally chartered veteran service organizations from property taxes. The bill, authored by Sen. Jim Abeler of Anoka, has bipartisan support.
He testified that he was surprised to learn that Post 102 in Anoka even has to pay property taxes, considering it maintains nonprofit status.
American Legion Department Legislative Chairwoman Kristy Janigo also testified.
“Many 501(c)(3) nonprofit organizations receive property tax exemptions after qualifying through their county assessor,” she said. “Veteran service organizations often have other designations, such as 501(c)(4) or 501(c)(19). We are asking for access to the same nonprofit property tax exemptions provided to 501(c)(3) nonprofits.”
She pointed out how a handful of states already provide this benefit to veteran posts. In Minnesota, there are some tax breaks, but county assessors and treasurers across the state interpret Department of Revenue rules differently from one county to another.
“A zero-tax measure would clear up much of the confusion county assessors across out 87 Minnesota counties have regarding post taxes,” Janigo said.
The bill is SF 255.
In the room with Janigo was St. Paul Arcade-Phalen Post 577 Commander Dan Norton, Post 577 Operations Manager Josh Fowler and Anoka Post 102 Commander Lori Allert, who stood ready to answer questions on tax burdens in the tens of thousands of dollars.
Janigo mentioned how taxes are endangering those posts and listed posts that have lost their buildings in recent years in part due to taxes: Coon Rapids, Champlin, Ham Lake, Stillwater, Marshall, Northfield and Waite Park. (Waite Park Post 428 had annual property tax burdens of nearly $60,000 by 2020.)
She described how these places raise funds for youth sports, blood drives, fire departments, food insecurity, homelessness, among other things.
“How many more communities will need to lose the gathering center for charity fundraising and activities before relief is provided?” Janigo asked.
