HF 1628

as introduced - 88th Legislature (2013 - 2014) Posted on 03/20/2013 10:39am

A bill for an act
relating to taxation; property; increasing property tax class rates on utility
property; amending Minnesota Statutes 2012, section 273.13, subdivision 24.

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

Section 1.

Minnesota Statutes 2012, 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 deleted text begin , deleted text end new text begin and new text end industrial
new text begin property new text end , deleted text begin or utility real property deleted text end has a class rate of 1.5 percent of the first tier of market
value, and 2.0 percent of the remaining market value.

new text begin (2) Except as provided, each parcel of utility real and personal property has a class
rate of 2.4 percent of the first tier of market value, and 3.4 percent of the remaining
market value.
new text end

new text begin (3) new text end 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 class rate, except that contiguous parcels owned by the same person or entity
shall be eligible for the first-tier value class rate on each separate business operated by
the owner of the property, provided the business is housed in a separate structure. 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 class rate for the higher tier.

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 class rate shall
notify the assessor by July 1, for treatment beginning in the following taxes payable year.

deleted text begin (2) deleted text end new text begin (4) new text end 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 deleted text begin (3) deleted text end new text begin (5) new text end , deleted text begin and all
railroad operating property deleted text end has a class rate as provided under clause deleted text begin (1) deleted text end new text begin (2) new text end for the first tier
of market value and the remaining market value new text begin . All railroad operating property has a
class rate as provided in clause (1) new text end . 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.

deleted text begin (3) deleted text end new text begin (5) new text end 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 class rate as provided
under clause deleted text begin (1) deleted text end new text begin (2) new text end 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 2014 and
thereafter.
new text end