HF 833

as introduced - 91st Legislature (2019 - 2020) Posted on 02/07/2019 02:06pm

A bill for an act
relating to taxation; property; allowing each parcel of commercial, industrial, and
utility property to qualify for preferred rate on first tier of value; amending
Minnesota Statutes 2018, section 273.13, subdivision 24.

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

Section 1.

Minnesota Statutes 2018, section 273.13, subdivision 24, is amended to read:

Subd. 24.

Class 3.

Commercial and industrial property and utility real and personal
property is class 3a.

(1) Except as otherwise provided, each parcel of commercial, industrial, or utility real
property has a classification rate of 1.5 percent of the first tier of market value, and 2.0
percent of the remaining market value. deleted text begin In the case of contiguous parcels of property owned
by the same person or entity, only the value equal to the first-tier value of the contiguous
parcels qualifies for the reduced classification rate, except that contiguous parcels owned
by the same person or entity shall be eligible for the first-tier value classification rate on
each separate business operated by the owner of the property, provided the business is
housed in a separate structure. deleted text end For the purposes of this subdivision, the first tier means the
first $150,000 of market value. Real property owned in fee by a utility for transmission line
right-of-way shall be classified at the classification rate for the higher tier.

deleted text begin For purposes of this subdivision, parcels are considered to be contiguous even if they
are separated from each other by a road, street, waterway, or other similar intervening type
of property. Connections between parcels that consist of power lines or pipelines do not
cause the parcels to be contiguous. Property owners who have contiguous parcels of property
that constitute separate businesses that may qualify for the first-tier classification rate shall
notify the assessor by July 1, for treatment beginning in the following taxes payable year.
deleted text end

(2) All personal property that is: (i) part of an electric generation, transmission, or
distribution system; or (ii) part of a pipeline system transporting or distributing water, gas,
crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
operating property has a classification rate as provided under clause (1) for the first tier of
market value and the remaining market value. In the case of multiple parcels in one county
that are owned by one person or entity, only one first tier amount is eligible for the reduced
rate.

(3) The entire market value of personal property that is: (i) tools, implements, and
machinery of an electric generation, transmission, or distribution system; (ii) tools,
implements, and machinery of a pipeline system transporting or distributing water, gas,
crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of
steam or hot or chilled water for heating or cooling buildings, has a classification rate as
provided under clause (1) for the remaining market value in excess of the first tier.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2020 and thereafter.
new text end