Bill Text: MN HF2911 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Solar energy systems exempted from property taxation, and solar energy production tax established.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-03-27 - Author added Hortman [HF2911 Detail]
Download: Minnesota-2013-HF2911-Introduced.html
1.2relating to taxation; property; exempting solar energy systems from property
1.3taxation; establishing a solar energy production tax; requiring reports;amending
1.4Minnesota Statutes 2012, section 272.02, subdivision 24; proposing coding for
1.5new law in Minnesota Statutes, chapter 272.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
1.8 Subd. 24.Electric power photovoltaic devices Solar energy systems. Photovoltaic
1.9devices Solar energy systems, as defined in section
216C.06, subdivision 16
1.10installed after January 1, 1992, and used to produce or store electric power are exempt.
1.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.
1.12 Sec. 2. [272.0295] SOLAR ENERGY PRODUCTION TAX.
1.13 Subdivision 1. Production tax. A tax is imposed on the production of electricity
1.14from a solar energy system used as an electric power source.
1.15 Subd. 2. Definitions. For the purposes of this section, the term "solar energy system"
1.16means one or more photovoltaic devices, as defined in section 216C.06, subdivision 16,
1.17and related equipment, including step-up transformers, used to produce generated power by
1.18means of any combination of collecting, transferring, or converting solar-generated energy.
1.19 Subd. 3. Rate of tax. (a) For a solar energy system with a capacity exceeding one
1.20megawatt, the tax is $1.20 per megawatt-hour.
1.21(b) A solar energy system with a capacity of one megawatt or less is exempt from
1.22the tax imposed under this section.
2.1 Subd. 4. Reports. An owner of a solar energy system subject to tax under this
2.2section shall file a report with the commissioner of revenue annually on or before February
2.31 detailing the amount of electricity in megawatt-hours that was produced by the solar
2.4energy system in the previous calendar year. The commissioner shall prescribe the form
2.5of the report. The report must contain the information required by the commissioner to
2.6determine the tax due to each county under this section for the current year. If an owner of
2.7a solar energy system subject to taxation under this section fails to file the report by the
2.8due date, the commissioner of revenue shall determine the tax based upon the nameplate
2.9capacity of the system multiplied by a capacity factor of 60 percent.
2.10 Subd. 5. Notification of tax. (a) On or before February 28, the commissioner of
2.11revenue shall notify the owner of each solar energy system of the tax due to each county
2.12for the current year and shall certify to the county auditor of each county in which the
2.13system is located the tax due from each owner for the current year.
2.14(b) If the commissioner of revenue determines that the amount of production tax has
2.15been erroneously calculated, the commissioner may correct the error. The commissioner
2.16must notify the owner of the solar energy system of the correction and the amount of tax
2.17due to each county and must certify the correction to the county auditor of each county in
2.18which the system is located on or before April 1 of the current year.
2.19 Subd. 6. Payment of tax; collection. The amount of production tax determined
2.20under subdivision 4 must be paid to the county treasurer at the time and in the manner
2.21provided for payment of property taxes under section277.01, subdivision 3 , and, if unpaid,
2.22is subject to the same enforcement, collection, and interest and penalties as delinquent
2.23personal property taxes. Except to the extent inconsistent with this section, the provisions
2.24of sections277.01 to
277.24 and
278.01 to
278.14 apply to the taxes imposed under this
2.25section, and for purposes of those provisions, the taxes imposed under this section are
2.26considered personal property taxes.
2.27 Subd. 7. Distribution of revenues. Revenues from the taxes imposed under this
2.28section must be part of the settlement between the county treasurer and the county auditor
2.29under section276.09 . The revenue must be distributed by the county auditor or the county
2.30treasurer to local taxing jurisdictions in which the solar energy system is located as
2.31follows: 80 percent to counties; and 20 percent to cities and townships.
2.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.
1.3taxation; establishing a solar energy production tax; requiring reports;amending
1.4Minnesota Statutes 2012, section 272.02, subdivision 24; proposing coding for
1.5new law in Minnesota Statutes, chapter 272.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
1.8 Subd. 24.
1.9
1.10
1.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.
1.12 Sec. 2. [272.0295] SOLAR ENERGY PRODUCTION TAX.
1.13 Subdivision 1. Production tax. A tax is imposed on the production of electricity
1.14from a solar energy system used as an electric power source.
1.15 Subd. 2. Definitions. For the purposes of this section, the term "solar energy system"
1.16means one or more photovoltaic devices, as defined in section 216C.06, subdivision 16,
1.17and related equipment, including step-up transformers, used to produce generated power by
1.18means of any combination of collecting, transferring, or converting solar-generated energy.
1.19 Subd. 3. Rate of tax. (a) For a solar energy system with a capacity exceeding one
1.20megawatt, the tax is $1.20 per megawatt-hour.
1.21(b) A solar energy system with a capacity of one megawatt or less is exempt from
1.22the tax imposed under this section.
2.1 Subd. 4. Reports. An owner of a solar energy system subject to tax under this
2.2section shall file a report with the commissioner of revenue annually on or before February
2.31 detailing the amount of electricity in megawatt-hours that was produced by the solar
2.4energy system in the previous calendar year. The commissioner shall prescribe the form
2.5of the report. The report must contain the information required by the commissioner to
2.6determine the tax due to each county under this section for the current year. If an owner of
2.7a solar energy system subject to taxation under this section fails to file the report by the
2.8due date, the commissioner of revenue shall determine the tax based upon the nameplate
2.9capacity of the system multiplied by a capacity factor of 60 percent.
2.10 Subd. 5. Notification of tax. (a) On or before February 28, the commissioner of
2.11revenue shall notify the owner of each solar energy system of the tax due to each county
2.12for the current year and shall certify to the county auditor of each county in which the
2.13system is located the tax due from each owner for the current year.
2.14(b) If the commissioner of revenue determines that the amount of production tax has
2.15been erroneously calculated, the commissioner may correct the error. The commissioner
2.16must notify the owner of the solar energy system of the correction and the amount of tax
2.17due to each county and must certify the correction to the county auditor of each county in
2.18which the system is located on or before April 1 of the current year.
2.19 Subd. 6. Payment of tax; collection. The amount of production tax determined
2.20under subdivision 4 must be paid to the county treasurer at the time and in the manner
2.21provided for payment of property taxes under section
2.22is subject to the same enforcement, collection, and interest and penalties as delinquent
2.23personal property taxes. Except to the extent inconsistent with this section, the provisions
2.24of sections
2.25section, and for purposes of those provisions, the taxes imposed under this section are
2.26considered personal property taxes.
2.27 Subd. 7. Distribution of revenues. Revenues from the taxes imposed under this
2.28section must be part of the settlement between the county treasurer and the county auditor
2.29under section
2.30treasurer to local taxing jurisdictions in which the solar energy system is located as
2.31follows: 80 percent to counties; and 20 percent to cities and townships.
2.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.
