HF 2420

as introduced - 88th Legislature (2013 - 2014) Posted on 02/27/2014 03:33pm

A bill for an act
relating to taxation; property; requiring the commissioner of revenue to notify
cities and counties of pending pollution control exemption and sliding scale
market value exclusion applications; amending Minnesota Statutes 2012,
sections 272.02, subdivision 10; 272.0211, subdivisions 1, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:

Subd. 10.

Personal property used for pollution control.

Personal property used
primarily for the abatement and control of air, water, or land pollution is exempt to the
extent that it is so used, and real property is exempt if it is used primarily for abatement
and control of air, water, or land pollution as part of an agricultural operation, as a part
of a centralized treatment and recovery facility operating under a permit issued by the
Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
treatment facility and for the treatment, recovery, and stabilization of metals, oils,
chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
part of an electric generation system. For purposes of this subdivision, personal property
includes ponderous machinery and equipment used in a business or production activity
that at common law is considered real property.

Any taxpayer requesting exemption of all or a portion of any real property or any
equipment or device, or part thereof, operated primarily for the control or abatement of air,
water, or land pollution shall file an application with the commissioner of revenue. new text begin Within
30 days of receipt of an application, the commissioner shall notify the county assessor
and city clerk of the jurisdictions that host the electric generation facility that a pollution
control exemption was requested. new text end The Minnesota Pollution Control Agency shall upon
request of the commissioner furnish information and advice to the commissioner.

The information and advice furnished by the Minnesota Pollution Control Agency
must include statements as to whether the equipment, device, or real property meets
a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control
Agency, and whether the equipment, device, or real property is installed or operated
in accordance with it. On determining that property qualifies for exemption, the
commissioner shall issue an order exempting the property from taxation new text begin and shall provide
notification of the order to the county assessor and city clerk of the jurisdictions that host
the electric generation facility new text end . The equipment, device, or real property shall continue to
be exempt from taxation as long as the order issued by the commissioner remains in effect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:

Subdivision 1.

Efficiency determination and certification.

An owner or operator
of a new or existing electric power generation facility, excluding wind energy conversion
systems, may apply to the commissioner of revenue for a market value exclusion on the
property as provided for in this section. This exclusion shall apply only to the market
value of the equipment of the facility, and shall not apply to the structures and the land
upon which the facility is located. The commissioner of revenue shall prescribe the forms
and procedures for this application. Upon receiving the application, the commissioner
of revenue shall new text begin : (1) new text end request the commissioner of commerce to make a determination
of the efficiency of the applicant's electric power generation facility new text begin ; and (2) within
30 days, notify the county assessor and city clerk of the jurisdictions that host the
electric generation facility that an application for an exclusion is being processed new text end . The
commissioner of commerce shall calculate efficiency as the ratio of useful energy outputs
to energy inputs, expressed as a percentage, based on the performance of the facility's
equipment during normal full load operation. The commissioner must include in this
formula the energy used in any on-site preparation of materials necessary to convert the
materials into the fuel used to generate electricity, such as a process to gasify petroleum
coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in
the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
project under section 216B.2424; for these instances, the commissioner shall adjust the
heating value to allow for energy consumed for evaporation of the moisture in the wood.
The applicant shall provide the commissioner of commerce with whatever information the
commissioner deems necessary to make the determination. Within 30 days of the receipt
of the necessary information, the commissioner of commerce shall certify the findings of
the efficiency determination to the commissioner of revenue and to the applicant. The
commissioner of commerce shall determine the efficiency of the facility and certify the
findings of that determination to the commissioner of revenue every two years thereafter
from the date of the original certification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2014.
new text end

Sec. 3.

Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:

Subd. 2.

Sliding scale exclusion.

Based upon the efficiency determination provided
by the commissioner of commerce as described in subdivision 1, the commissioner of
revenue shall subtract eight percent of the taxable market value of the qualifying property
for each percentage point that the efficiency of the specific facility, as determined by the
commissioner of commerce, is above 40 percent. The reduction in taxable market value
shall be reflected in the taxable market value of the facility beginning with the assessment
year immediately following the determination. For a facility that is assessed by the county
in which the facility is located, the commissioner of revenue shall certify new text begin within 30 days
of determination new text end to the assessor of that county new text begin and the city clerk of the host city new text end the
percentage of the taxable market value of the facility to be excluded.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2014.
new text end