St. Ann’s Senior Residence Seeking Tax Exempt Status

Bill Proposed in Minnesota Would Exempt Non-Profit from $82,000 Per Year in Property Taxes

DULUTH, Minn. – St. Ann’s Residence is a non-profit organization that has provided housing to seniors since 1963 at their location on Third Street in Downtown Duluth.

But since the 1980s, the residence has been forced to pay property taxes unlike other healthcare non-profits.

A bill has now been proposed in Minnesota that would make St. Ann’s tax exempt.

Non-profit nursing homes and hospitals are tax exempt, but St. Ann’s pays about $82,000 in property taxes every year even though they provide some of the same services to seniors.

For years the residence has worked with local lawmakers to become tax exempt. That hasn’t happened because of the language in the Minnesota tax code that categorizes them as low-income housing, which is taxed.

“Taxation is the expectation of our society but when it comes to non-profits, exemption is what is the norm and I would tell them that what has happened to my organization was certainly out of the norm,” said Scott Johnson, the Executive Director of St. Ann’s.

With the money they would save in taxes, St. Ann’s officials say they could invest in needed maintenance and renovations to their building.

If their tax exempt bill passes the state legislature, they would be the only facility in the state affected.

That bill has been brought up this legislative session. It would have to pass the house and

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