Bill Text: MN SF1724 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Revenue commissioner pending pollution control exemption and sliding scale market value property tax exclusion applications notification to cities and counties requirement
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-02-25 - Referred to Taxes [SF1724 Detail]
Download: Minnesota-2013-SF1724-Introduced.html
1.2relating to taxation; property; requiring the commissioner of revenue to notify
1.3cities and counties of pending pollution control exemption and sliding scale
1.4market value exclusion applications; amending Minnesota Statutes 2012,
1.5sections 272.02, subdivision 10; 272.0211, subdivisions 1, 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
1.8 Subd. 10. Personal property used for pollution control. Personal property used
1.9primarily for the abatement and control of air, water, or land pollution is exempt to the
1.10extent that it is so used, and real property is exempt if it is used primarily for abatement
1.11and control of air, water, or land pollution as part of an agricultural operation, as a part
1.12of a centralized treatment and recovery facility operating under a permit issued by the
1.13Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
1.14Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
1.15treatment facility and for the treatment, recovery, and stabilization of metals, oils,
1.16chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
1.17part of an electric generation system. For purposes of this subdivision, personal property
1.18includes ponderous machinery and equipment used in a business or production activity
1.19that at common law is considered real property.
1.20Any taxpayer requesting exemption of all or a portion of any real property or any
1.21equipment or device, or part thereof, operated primarily for the control or abatement of air,
1.22water, or land pollution shall file an application with the commissioner of revenue. Within
1.2330 days of receipt of an application, the commissioner shall notify the county assessor
1.24and city clerk of the jurisdictions that host the electric generation facility that a pollution
2.1control exemption was requested. The Minnesota Pollution Control Agency shall upon
2.2request of the commissioner furnish information and advice to the commissioner.
2.3The information and advice furnished by the Minnesota Pollution Control Agency
2.4must include statements as to whether the equipment, device, or real property meets
2.5a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control
2.6Agency, and whether the equipment, device, or real property is installed or operated
2.7in accordance with it. On determining that property qualifies for exemption, the
2.8commissioner shall issue an order exempting the property from taxation and shall provide
2.9notification of the order to the county assessor and city clerk of the jurisdictions that host
2.10the electric generation facility. The equipment, device, or real property shall continue to
2.11be exempt from taxation as long as the order issued by the commissioner remains in effect.
2.12EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
2.13 Sec. 2. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
2.14 Subdivision 1. Efficiency determination and certification. An owner or operator
2.15of a new or existing electric power generation facility, excluding wind energy conversion
2.16systems, may apply to the commissioner of revenue for a market value exclusion on the
2.17property as provided for in this section. This exclusion shall apply only to the market
2.18value of the equipment of the facility, and shall not apply to the structures and the land
2.19upon which the facility is located. The commissioner of revenue shall prescribe the forms
2.20and procedures for this application. Upon receiving the application, the commissioner
2.21of revenue shall: (1) request the commissioner of commerce to make a determination
2.22of the efficiency of the applicant's electric power generation facility; and (2) within
2.2330 days, notify the county assessor and city clerk of the jurisdictions that host the
2.24electric generation facility that an application for an exclusion is being processed. The
2.25commissioner of commerce shall calculate efficiency as the ratio of useful energy outputs
2.26to energy inputs, expressed as a percentage, based on the performance of the facility's
2.27equipment during normal full load operation. The commissioner must include in this
2.28formula the energy used in any on-site preparation of materials necessary to convert the
2.29materials into the fuel used to generate electricity, such as a process to gasify petroleum
2.30coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in
2.31the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
2.32project under section216B.2424 ; for these instances, the commissioner shall adjust the
2.33heating value to allow for energy consumed for evaporation of the moisture in the wood.
2.34The applicant shall provide the commissioner of commerce with whatever information the
2.35commissioner deems necessary to make the determination. Within 30 days of the receipt
3.1of the necessary information, the commissioner of commerce shall certify the findings of
3.2the efficiency determination to the commissioner of revenue and to the applicant. The
3.3commissioner of commerce shall determine the efficiency of the facility and certify the
3.4findings of that determination to the commissioner of revenue every two years thereafter
3.5from the date of the original certification.
3.6EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
3.7 Sec. 3. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
3.8 Subd. 2. Sliding scale exclusion. Based upon the efficiency determination provided
3.9by the commissioner of commerce as described in subdivision 1, the commissioner of
3.10revenue shall subtract eight percent of the taxable market value of the qualifying property
3.11for each percentage point that the efficiency of the specific facility, as determined by the
3.12commissioner of commerce, is above 40 percent. The reduction in taxable market value
3.13shall be reflected in the taxable market value of the facility beginning with the assessment
3.14year immediately following the determination. For a facility that is assessed by the county
3.15in which the facility is located, the commissioner of revenue shall certify within 30 days
3.16of determination to the assessor of that county and the city clerk of the host city the
3.17percentage of the taxable market value of the facility to be excluded.
3.18EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
1.3cities and counties of pending pollution control exemption and sliding scale
1.4market value exclusion applications; amending Minnesota Statutes 2012,
1.5sections 272.02, subdivision 10; 272.0211, subdivisions 1, 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
1.8 Subd. 10. Personal property used for pollution control. Personal property used
1.9primarily for the abatement and control of air, water, or land pollution is exempt to the
1.10extent that it is so used, and real property is exempt if it is used primarily for abatement
1.11and control of air, water, or land pollution as part of an agricultural operation, as a part
1.12of a centralized treatment and recovery facility operating under a permit issued by the
1.13Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
1.14Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
1.15treatment facility and for the treatment, recovery, and stabilization of metals, oils,
1.16chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
1.17part of an electric generation system. For purposes of this subdivision, personal property
1.18includes ponderous machinery and equipment used in a business or production activity
1.19that at common law is considered real property.
1.20Any taxpayer requesting exemption of all or a portion of any real property or any
1.21equipment or device, or part thereof, operated primarily for the control or abatement of air,
1.22water, or land pollution shall file an application with the commissioner of revenue. Within
1.2330 days of receipt of an application, the commissioner shall notify the county assessor
1.24and city clerk of the jurisdictions that host the electric generation facility that a pollution
2.1control exemption was requested. The Minnesota Pollution Control Agency shall upon
2.2request of the commissioner furnish information and advice to the commissioner.
2.3The information and advice furnished by the Minnesota Pollution Control Agency
2.4must include statements as to whether the equipment, device, or real property meets
2.5a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control
2.6Agency, and whether the equipment, device, or real property is installed or operated
2.7in accordance with it. On determining that property qualifies for exemption, the
2.8commissioner shall issue an order exempting the property from taxation and shall provide
2.9notification of the order to the county assessor and city clerk of the jurisdictions that host
2.10the electric generation facility. The equipment, device, or real property shall continue to
2.11be exempt from taxation as long as the order issued by the commissioner remains in effect.
2.12EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
2.13 Sec. 2. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
2.14 Subdivision 1. Efficiency determination and certification. An owner or operator
2.15of a new or existing electric power generation facility, excluding wind energy conversion
2.16systems, may apply to the commissioner of revenue for a market value exclusion on the
2.17property as provided for in this section. This exclusion shall apply only to the market
2.18value of the equipment of the facility, and shall not apply to the structures and the land
2.19upon which the facility is located. The commissioner of revenue shall prescribe the forms
2.20and procedures for this application. Upon receiving the application, the commissioner
2.21of revenue shall: (1) request the commissioner of commerce to make a determination
2.22of the efficiency of the applicant's electric power generation facility; and (2) within
2.2330 days, notify the county assessor and city clerk of the jurisdictions that host the
2.24electric generation facility that an application for an exclusion is being processed. The
2.25commissioner of commerce shall calculate efficiency as the ratio of useful energy outputs
2.26to energy inputs, expressed as a percentage, based on the performance of the facility's
2.27equipment during normal full load operation. The commissioner must include in this
2.28formula the energy used in any on-site preparation of materials necessary to convert the
2.29materials into the fuel used to generate electricity, such as a process to gasify petroleum
2.30coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in
2.31the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
2.32project under section
2.33heating value to allow for energy consumed for evaporation of the moisture in the wood.
2.34The applicant shall provide the commissioner of commerce with whatever information the
2.35commissioner deems necessary to make the determination. Within 30 days of the receipt
3.1of the necessary information, the commissioner of commerce shall certify the findings of
3.2the efficiency determination to the commissioner of revenue and to the applicant. The
3.3commissioner of commerce shall determine the efficiency of the facility and certify the
3.4findings of that determination to the commissioner of revenue every two years thereafter
3.5from the date of the original certification.
3.6EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
3.7 Sec. 3. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
3.8 Subd. 2. Sliding scale exclusion. Based upon the efficiency determination provided
3.9by the commissioner of commerce as described in subdivision 1, the commissioner of
3.10revenue shall subtract eight percent of the taxable market value of the qualifying property
3.11for each percentage point that the efficiency of the specific facility, as determined by the
3.12commissioner of commerce, is above 40 percent. The reduction in taxable market value
3.13shall be reflected in the taxable market value of the facility beginning with the assessment
3.14year immediately following the determination. For a facility that is assessed by the county
3.15in which the facility is located, the commissioner of revenue shall certify within 30 days
3.16of determination to the assessor of that county and the city clerk of the host city the
3.17percentage of the taxable market value of the facility to be excluded.
3.18EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
