House committee recommends re-referral of bill to exempt VFW and American Legion posts from property tax

Representative Bennett moved that House File 195 be recommended for re-referral to the taxes committee, and the House Veterans and Military Affairs Division agreed by voice vote.

House File 195 would exempt congressionally chartered veterans service organizations, including American Legion posts and Veterans of Foreign Wars (VFW) posts, from paying property taxes on buildings they own and operate. The bill’s author, Representative Bennett, opened the item and called several veterans’ organization leaders to testify in support.

Dr. Carl Moon, American Legion Department commander for Minnesota, told the committee the American Legion and other congressionally chartered veterans organizations should qualify for the same nonprofit property-tax exemptions that many 501(c)(3) organizations receive. "What we're asking for is access to the same non profit property tax exemptions provided to the 5 0 1 c threes," Moon said. He said the Department of Veterans Affairs provides an annual list of eligible organizations to the Department of Revenue and argued that a statutory fix would reduce confusion among county assessors across Minnesota.

David Stalen, state commander for the Department of Minnesota VFW, described the social and charitable functions of post buildings and the financial pressures facing them. "Our posts are facing increased not only property taxes, but insurance, payroll, unemployment, insurance, utilities, and maintenance," Stalen said. He said the VFW represents about 188 posts in Minnesota, roughly 30,000 members, and that 107 posts own real estate. Stalen said reported volunteer hours exceed 42,000 and that the national valuation of those hours is about $4.5 million; he also said Minnesota VFW posts donated about $2.6 million to communities last year.

Alan Skramstad, adjutant at Mora Post 201, described a local memorial and indoor educational display that his post operates and told the committee, "Now the county wants to tax this site as a commercial property to the tune of almost $7,000," even though the post does not generate commercial revenue from the site. Skramstad said the post makes meeting space available to community groups and that most fundraising revenue goes to local youth and veterans programs.

Witnesses and the bill’s author emphasized that many posts are aging and that several have sold buildings or surrendered their charters in recent years because of financial strain. Testimony referenced posts in Stillwater, Marshall, Northfield, Waite Park, and several Twin Cities-area posts as examples of buildings lost or sold.

After testimony, Representative Bennett renewed her motion that House File 195 be recommended to be re-referred to the taxes committee. The chair called for a voice vote: "All in favor, say aye." Committee members answered "Aye." The chair then said the motion carries and House File 195 was re-referred to the taxes committee.

Votes at a glance: House File 195 — motion to recommend re-referral to taxes committee; mover: Representative Bennett; second: not specified; outcome: approved by voice vote (motion carries).