HF 2876

as introduced - 86th Legislature (2009 - 2010) Posted on 02/10/2010 03:37pm

A bill for an act
relating to taxation; eliminating property tax exemption for real and personal
property used for pollution control as part of an electric generation system;
authorizing a rate rider to compensate for tax increase; amending Minnesota
Statutes 2008, section 272.02, subdivision 10; proposing coding for new law
in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.1647] RECOVERY OF INCREASE PROPERTY TAXES.
new text end

new text begin Upon petition by a public utility that owns property that had been exempt from
taxation under Minnesota Statutes 2008, section 272.02, subdivision 10, the commission
shall approve a rate schedule providing for an adjustment of charges to recover the
additional tax payable by the public utility as a result of the elimination of the property tax
exemption for pollution control property as provided in section 2.
new text end

Sec. 2.

Minnesota Statutes 2008, 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, deleted text begin and deleted text end new text begin provided that this exemption does not apply to personal
property that is part of an electric generation system. new text end 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,
new text begin or new text end 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 deleted text begin , or as part of an electric generation system deleted text end . 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.
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. 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 for taxes levied in 2011, payable in
2012 and thereafter.
new text end