Bill Text: MN SF962 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Attached machinery and personal property of electric generation facilities pollution control equipment property tax exemptions modification; class 3 property tax rate modification
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-19 - Author added Saxhaug [SF962 Detail]
Download: Minnesota-2011-SF962-Introduced.html
1.2relating to taxation; property; modifying pollution control exemption and class
1.33 rate;amending Minnesota Statutes 2010, sections 272.02, subdivision 10;
1.4273.13, subdivision 24.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 272.02, subdivision 10, is amended to read:
1.7 Subd. 10. Personal property used for pollution control. (a) Personal property
1.8used primarily for the abatement and control of air, water, or land pollution is exempt to
1.9the extent that it is so used, and real property is exempt if it is used primarily for abatement
1.10and control of air, water, or land pollution as part of an agricultural operation, as a part
1.11of a centralized treatment and recovery facility operating under a permit issued by the
1.12Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
1.13Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
1.14treatment facility and for the treatment, recovery, and stabilization of metals, oils,
1.15chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
1.16part of an electric generation system. For purposes of this subdivision, personal property
1.17includes ponderous machinery and equipment used in a business or production activity
1.18that at common law is considered real property.
1.19(b) Any taxpayer requesting exemption of all or a portion of any real property or any
1.20equipment or device, or part thereof, operated primarily for the control or abatement of
1.21air, water, or land pollution shall file an application with the commissioner of revenue.
1.22The Minnesota Pollution Control Agency shall upon request of the commissioner furnish
1.23information and advice to the commissioner.
2.1(c) The information and advice furnished by the Minnesota Pollution Control
2.2Agency must include statements as to whether the equipment, device, or real property
2.3meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
2.4Control Agency, and whether the equipment, device, or real property is installed or
2.5operated in accordance with it. On determining that property qualifies for exemption, the
2.6commissioner shall issue an order exempting the property from taxation. The equipment,
2.7device, or real property shall continue to be exempt from taxation as long as the order
2.8issued by the commissioner remains in effect, except that the exemption for attached
2.9machinery and other personal property of an electric generation facility is applied as
2.10provided in paragraphs (d) and (e).
2.11(d) Beginning in assessment year 2011 and thereafter, an exemption granted for
2.12attached machinery and other personal property of an electric generation facility under
2.13this subdivision applies as follows:
2.14(1) for taxes payable in the first year of the exemption, the exemption applies to the
2.15full value of the personal property;
2.16(2) for taxes payable in the second year of the exemption, the exemption applies to
2.17two-thirds of the value of the personal property; and
2.18(3) for taxes payable in the third year of the exemption, the exemption applies to
2.19one-third of the value of the personal property.
2.20(e) After the exemption is applied as provided in paragraph (d), the exemption order
2.21issued by the commissioner for attached machinery and other personal property under
2.22this subdivision expires.
2.23(f) Exemptions granted by the commissioner for attached machinery and other
2.24personal property issued prior to the 2011 assessment year are phased out, beginning in
2.25taxable year 2012, as provided in paragraph (d).
2.26EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.27thereafter.
2.28 Sec. 2. Minnesota Statutes 2010, section 273.13, subdivision 24, is amended to read:
2.29 Subd. 24. Class 3. (a) Commercial and industrial property and utility real and
2.30personal property is class 3a.
2.31(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
2.32real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent
2.33of the remaining market value. In the case of contiguous parcels of property owned by the
2.34same person or entity, only the value equal to the first-tier value of the contiguous parcels
2.35qualifies for the reduced class rate, except that contiguous parcels owned by the same
3.1person or entity shall be eligible for the first-tier value class rate on each separate business
3.2operated by the owner of the property, provided the business is housed in a separate
3.3structure. For the purposes of this subdivision, the first tier means the first $150,000 of
3.4market value. Real property owned in fee by a utility for transmission line right-of-way
3.5shall be classified at the class rate for the higher tier.
3.6For purposes of this subdivision, parcels are considered to be contiguous even if
3.7they are separated from each other by a road, street, waterway, or other similar intervening
3.8type of property. Connections between parcels that consist of power lines or pipelines do
3.9not cause the parcels to be contiguous. Property owners who have contiguous parcels of
3.10property that constitute separate businesses that may qualify for the first-tier class rate shall
3.11notify the assessor by July 1, for treatment beginning in the following taxes payable year.
3.12(2) All personal property that is: (i) part of an electric generation, transmission, or
3.13distribution system; or (ii) part of a pipeline system transporting or distributing water, gas,
3.14crude oil, or petroleum products; and (iii) not described in clause (3) or (4),and all has a
3.15class rate of 3.0 percent.
3.16(3) Railroad operating property has a class rate as provided under clause (1) for
3.17the first tier of market value and the remaining market value. In the case of multiple
3.18parcels in one county that are owned by one person or entity, only one first tier amount
3.19is eligible for the reduced rate.
3.20(3) The entire market value of personal property that is: (i) tools, implements, and
3.21machinery of an electric generation, transmission, or distribution system; (ii) tools,
3.22implements, and machinery of a pipeline system transporting or distributing water, gas,
3.23crude oil, or petroleum products; or (iii) the (4) Personal property consisting of mains
3.24and pipes used in the distribution of steam or hot or chilled water for heating or cooling
3.25buildings, has a class rate as provided under clause (1) for the remaining market value
3.26in excess of the first tier.
3.27(b) Employment property defined in section469.166 , during the period provided
3.28in section469.170 , shall constitute class 3b. The class rates for class 3b property are
3.29determined under paragraph (a).
3.30EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.31thereafter.
1.33 rate;amending Minnesota Statutes 2010, sections 272.02, subdivision 10;
1.4273.13, subdivision 24.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 272.02, subdivision 10, is amended to read:
1.7 Subd. 10. Personal property used for pollution control. (a) Personal property
1.8used primarily for the abatement and control of air, water, or land pollution is exempt to
1.9the extent that it is so used, and real property is exempt if it is used primarily for abatement
1.10and control of air, water, or land pollution as part of an agricultural operation, as a part
1.11of a centralized treatment and recovery facility operating under a permit issued by the
1.12Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
1.13Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
1.14treatment facility and for the treatment, recovery, and stabilization of metals, oils,
1.15chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
1.16part of an electric generation system. For purposes of this subdivision, personal property
1.17includes ponderous machinery and equipment used in a business or production activity
1.18that at common law is considered real property.
1.19(b) Any taxpayer requesting exemption of all or a portion of any real property or any
1.20equipment or device, or part thereof, operated primarily for the control or abatement of
1.21air, water, or land pollution shall file an application with the commissioner of revenue.
1.22The Minnesota Pollution Control Agency shall upon request of the commissioner furnish
1.23information and advice to the commissioner.
2.1(c) The information and advice furnished by the Minnesota Pollution Control
2.2Agency must include statements as to whether the equipment, device, or real property
2.3meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
2.4Control Agency, and whether the equipment, device, or real property is installed or
2.5operated in accordance with it. On determining that property qualifies for exemption, the
2.6commissioner shall issue an order exempting the property from taxation. The equipment,
2.7device, or real property shall continue to be exempt from taxation as long as the order
2.8issued by the commissioner remains in effect, except that the exemption for attached
2.9machinery and other personal property of an electric generation facility is applied as
2.10provided in paragraphs (d) and (e).
2.11(d) Beginning in assessment year 2011 and thereafter, an exemption granted for
2.12attached machinery and other personal property of an electric generation facility under
2.13this subdivision applies as follows:
2.14(1) for taxes payable in the first year of the exemption, the exemption applies to the
2.15full value of the personal property;
2.16(2) for taxes payable in the second year of the exemption, the exemption applies to
2.17two-thirds of the value of the personal property; and
2.18(3) for taxes payable in the third year of the exemption, the exemption applies to
2.19one-third of the value of the personal property.
2.20(e) After the exemption is applied as provided in paragraph (d), the exemption order
2.21issued by the commissioner for attached machinery and other personal property under
2.22this subdivision expires.
2.23(f) Exemptions granted by the commissioner for attached machinery and other
2.24personal property issued prior to the 2011 assessment year are phased out, beginning in
2.25taxable year 2012, as provided in paragraph (d).
2.26EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.27thereafter.
2.28 Sec. 2. Minnesota Statutes 2010, section 273.13, subdivision 24, is amended to read:
2.29 Subd. 24. Class 3. (a) Commercial and industrial property and utility real and
2.30personal property is class 3a.
2.31(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
2.32real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent
2.33of the remaining market value. In the case of contiguous parcels of property owned by the
2.34same person or entity, only the value equal to the first-tier value of the contiguous parcels
2.35qualifies for the reduced class rate, except that contiguous parcels owned by the same
3.1person or entity shall be eligible for the first-tier value class rate on each separate business
3.2operated by the owner of the property, provided the business is housed in a separate
3.3structure. For the purposes of this subdivision, the first tier means the first $150,000 of
3.4market value. Real property owned in fee by a utility for transmission line right-of-way
3.5shall be classified at the class rate for the higher tier.
3.6For purposes of this subdivision, parcels are considered to be contiguous even if
3.7they are separated from each other by a road, street, waterway, or other similar intervening
3.8type of property. Connections between parcels that consist of power lines or pipelines do
3.9not cause the parcels to be contiguous. Property owners who have contiguous parcels of
3.10property that constitute separate businesses that may qualify for the first-tier class rate shall
3.11notify the assessor by July 1, for treatment beginning in the following taxes payable year.
3.12(2) All personal property that is: (i) part of an electric generation, transmission, or
3.13distribution system; or (ii) part of a pipeline system transporting or distributing water, gas,
3.14crude oil, or petroleum products; and (iii) not described in clause (3) or (4),
3.15class rate of 3.0 percent.
3.16(3) Railroad operating property has a class rate as provided under clause (1) for
3.17the first tier of market value and the remaining market value. In the case of multiple
3.18parcels in one county that are owned by one person or entity, only one first tier amount
3.19is eligible for the reduced rate.
3.20
3.21
3.22
3.23
3.24and pipes used in the distribution of steam or hot or chilled water for heating or cooling
3.25buildings, has a class rate as provided under clause (1) for the remaining market value
3.26in excess of the first tier.
3.27(b) Employment property defined in section
3.28in section
3.29determined under paragraph (a).
3.30EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
3.31thereafter.
