Bill Text: MN SF394 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Real property definition for fermentation and beer wells or liquefaction tanks clarification
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-02-21 - Author added Reinert [SF394 Detail]
Download: Minnesota-2013-SF394-Introduced.html
1.2relating to taxation; property; clarifying the definition of real property;amending
1.3Minnesota Statutes 2012, section 272.03, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
1.6 Subdivision 1. Real property. (a) For the purposes of taxation, "real property"
1.7includes the land itself, rails, ties, and other track materials annexed to the land, and all
1.8buildings, structures, and improvements or other fixtures on it, bridges of bridge companies,
1.9and all rights and privileges belonging or appertaining to the land, and all mines, iron ore
1.10and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
1.11(b) A building or structure shall include the building or structure itself, together with
1.12all improvements or fixtures annexed to the building or structure, which are integrated
1.13with and of permanent benefit to the building or structure, regardless of the present use
1.14of the building, and which cannot be removed without substantial damage to itself or to
1.15the building or structure.
1.16(c)(i) Real property does not include tools, implements, machinery, and equipment
1.17attached to or installed in real property for use in the business or production activity
1.18conducted thereon, regardless of size, weight or method of attachment, and mine shafts,
1.19tunnels, and other underground openings used to extract ores and minerals taxed under
1.20chapter 298 together with steel, concrete, and other materials used to support such openings.
1.21(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment
1.22includable as real estate by paragraphs (a) and (b) even though such machinery and
1.23equipment is used in the business or production activity conducted on the real property if
2.1and to the extent such business or production activity consists of furnishing services or
2.2products to other buildings or structures which are subject to taxation under this chapter.
2.3(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a
2.4structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has
2.5structural, insulation, or temperature control functions or provides protection from the
2.6elements. Such an exterior shell is included in the definition of real property even if it
2.7also has special functions distinct from that of a building.
2.8(d) The term real property does not include tools, implements, machinery,
2.9equipment, poles, lines, cables, wires, conduit, and station connections which are part of a
2.10telephone communications system, regardless of attachment to or installation in real
2.11property and regardless of size, weight, or method of attachment or installation.
2.12(e) The term real property does not include fermentation and beer wells or
2.13liquefaction tanks, which are part of a production process for biofuel facilities, wineries,
2.14breweries, distilleries, or dairies, regardless of attachment to or installation in real
2.15property, and regardless of size, weight, or method of attachment or installation.
2.16EFFECTIVE DATE.This section is effective for taxes payable in 2013.
1.3Minnesota Statutes 2012, section 272.03, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
1.6 Subdivision 1. Real property. (a) For the purposes of taxation, "real property"
1.7includes the land itself, rails, ties, and other track materials annexed to the land, and all
1.8buildings, structures, and improvements or other fixtures on it, bridges of bridge companies,
1.9and all rights and privileges belonging or appertaining to the land, and all mines, iron ore
1.10and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
1.11(b) A building or structure shall include the building or structure itself, together with
1.12all improvements or fixtures annexed to the building or structure, which are integrated
1.13with and of permanent benefit to the building or structure, regardless of the present use
1.14of the building, and which cannot be removed without substantial damage to itself or to
1.15the building or structure.
1.16(c)(i) Real property does not include tools, implements, machinery, and equipment
1.17attached to or installed in real property for use in the business or production activity
1.18conducted thereon, regardless of size, weight or method of attachment, and mine shafts,
1.19tunnels, and other underground openings used to extract ores and minerals taxed under
1.20chapter 298 together with steel, concrete, and other materials used to support such openings.
1.21(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment
1.22includable as real estate by paragraphs (a) and (b) even though such machinery and
1.23equipment is used in the business or production activity conducted on the real property if
2.1and to the extent such business or production activity consists of furnishing services or
2.2products to other buildings or structures which are subject to taxation under this chapter.
2.3(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a
2.4structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has
2.5structural, insulation, or temperature control functions or provides protection from the
2.6elements. Such an exterior shell is included in the definition of real property even if it
2.7also has special functions distinct from that of a building.
2.8(d) The term real property does not include tools, implements, machinery,
2.9equipment, poles, lines, cables, wires, conduit, and station connections which are part of a
2.10telephone communications system, regardless of attachment to or installation in real
2.11property and regardless of size, weight, or method of attachment or installation.
2.12(e) The term real property does not include fermentation and beer wells or
2.13liquefaction tanks, which are part of a production process for biofuel facilities, wineries,
2.14breweries, distilleries, or dairies, regardless of attachment to or installation in real
2.15property, and regardless of size, weight, or method of attachment or installation.
2.16EFFECTIVE DATE.This section is effective for taxes payable in 2013.
