Minnesota Legislature
HF 2018
as introduced - 89th Legislature (2015 - 2016) Posted on 03/17/2016 05:03pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/19/2015 |
Current Version - as introduced
1.14 1.15
1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
2.11 2.12
2.13 2.14 2.15 2.16
2.17 2.18
2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32
3.1 3.2
3.3 3.4 3.5 3.6 3.7 3.8 3.9
3.10 3.11
3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23
3.24 3.25
3.26 3.27 3.28 3.29 3.30
3.31 3.32
4.1 4.2 4.3 4.4 4.5
4.6 4.7
4.8 4.9 4.10 4.11 4.12
4.13 4.14
4.15 4.16 4.17 4.18 4.19
4.20 4.21
4.22 4.23 4.24 4.25 4.26
4.27 4.28
4.29 4.30 5.1 5.2 5.3
5.4 5.5
5.6 5.7 5.8 5.9
5.10 5.11
5.12 5.13 5.14 5.15
5.16 5.17
5.18 5.19 5.20 5.21
5.22 5.23
5.24 5.25 5.26 5.27 5.28 5.29 5.30 6.1 6.2 6.3 6.4 6.5 6.6 6.7
6.8 6.9
6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21
6.22 6.23
6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17
7.18 7.19
7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28
7.29 7.30
7.31 7.32 7.33 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12
8.13 8.14
8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21
9.22 9.23
9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34
10.35 10.36
11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13
11.14 11.15
11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 12.1
12.2 12.3
12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28
12.29 12.30
12.31 12.32 12.33 13.1 13.2 13.3 13.4 13.5 13.6 13.7
13.8 13.9
13.10 13.11 13.12 13.13 13.14 13.15 13.16
13.17
13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31
13.32 13.33
14.1 14.2 14.3 14.4 14.5
14.6 14.7
A bill for an act
relating to state government finance; governing taxation and safety of railroads
and pipelines; amending property taxes on railroads; eliminating sunset on
assessment of railroads and pipeline companies; appropriating funds for certain
railroad crossing improvements; amending Minnesota Statutes 2014, sections
270.80, subdivisions 1, 2, 3, 4, by adding subdivisions; 270.81, subdivisions 1,
3, by adding a subdivision; 270.82; 270.83, subdivisions 1, 2; 270.84; 270.86;
270.87; 272.02, subdivision 9; 275.025, subdivisions 1, 4; 299A.55, subdivision
4; repealing Minnesota Statutes 2014, sections 270.81, subdivision 4; 270.83,
subdivision 3; Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8,
10, 12, 13, 14, 17, 17a, 18, 19, 20, 21; 8106.0300, subparts 1, 3; 8106.0400;
8106.0500; 8106.0600; 8106.0700; 8106.0800; 8106.9900.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
OIL AND HAZARDOUS MATERIALS TRANSPORTATION SAFETY
Section 1.
Minnesota Statutes 2014, section 299A.55, subdivision 4, is amended to read:
Subd. 4.
Assessments.
(a) The commissioner of public safety shall annually assess
$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph
(b). The commissioner shall deposit funds collected under this subdivision in the railroad
and pipeline safety account under subdivision 2.
(b) The assessment for each railroad is 50 percent of the total annual assessment
amount, divided in equal proportion between applicable rail carriers based on route miles
operated in Minnesota. The assessment for each pipeline company is 50 percent of the
total annual assessment amount, divided in equal proportion between companies based
on the yearly aggregate gallons of oil and hazardous substance transported by pipeline
in Minnesota.
deleted text begin
(c) The assessments under this subdivision expire July 1, 2017.
deleted text end
Sec. 2. new text begin RAILROAD AT-GRADE CROSSING IMPROVEMENTS;
APPROPRIATIONS.
new text end
new text begin
(a) $11,034,000 in fiscal year 2016 and $22,876,000 in fiscal year 2017 are
appropriated from the general fund to the commissioner of transportation for highway
rail at-grade crossing safety improvement projects related to oil and other hazardous
materials transported by rail, excluding grade separation projects, as identified in the
legislative report under Laws 2014, chapter 312, article 10, section 10. Notwithstanding
Minnesota Statutes, section 16A.28, this appropriation is available for three years after
the year of appropriation.
new text end
new text begin
(b) The base appropriation for projects under this section is $23,000,000 each year.
new text end
ARTICLE 2
RAILROAD RECODIFICATION
Section 1.
Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:
Subdivision 1.
Applicability.
The following words and phrases when used
in sections deleted text begin 270.80deleted text end new text begin 273.3712new text end to deleted text begin 270.87deleted text end new text begin 273.3719new text end , unless the context clearly indicates
otherwise, have the meanings ascribed to them in this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 2.
Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:
Subd. 2.
Railroad company.
"Railroad company" means:
(1) any company which as a common carrier operates a railroad or a line or lines of
deleted text begin railwaydeleted text end new text begin railroadnew text end situated within or partly within Minnesota; or
(2) any company owning or operating, other than as a common carrier, a railway
principally used for transportation of taconite concentrates from the plant at which the
taconite concentrates are produced in shipping form to a point of consumption or port
for shipment beyond the state; or
(3) any company that produces concentrates from taconite and transports that
taconite in the course of the concentrating process and before the concentrating process is
completed to a concentrating plant located within the state over a railroad that is not a
common carrier and deleted text begin shalldeleted text end new text begin doesnew text end not use a common carrier or taconite railroad company as
defined in clause (2) for the movement of the concentrate to a point of consumption or
port for shipment beyond the state.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 3.
Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:
Subd. 3.
Operating property.
"Operating property" means all property owned
or used by a railroad company in the performance of railroad transportation services,
including deleted text begin without limitation franchises, rights-of-way, bridges, trestles, shops, docks,
wharves, buildings and structures.deleted text end new text begin but not limited to roads, locomotives, freight cars,
and improvements on leased property. Operating property is listed and assessed by the
commissioner where the property is located.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 4.
Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:
Subd. 4.
Nonoperating property.
"Nonoperating property" means deleted text begin and includesdeleted text end
all property other than property defined in subdivision 3. Nonoperating property deleted text begin shall
includedeleted text end new text begin includesnew text end real property deleted text begin whichdeleted text end new text begin thatnew text end is leased or rentednew text begin ,new text end or available for lease or rentnew text begin ,new text end
to any person deleted text begin whichdeleted text end new text begin thatnew text end is not a railroad company. Vacant land deleted text begin shall bedeleted text end new text begin isnew text end presumed to
be available for lease or rent if it has not been used as operating property for a period of
one year new text begin immediately new text end preceding the valuation date. Nonoperating property also includes
land deleted text begin whichdeleted text end new text begin thatnew text end is not necessary and integral to the performance of railroad transportation
services and deleted text begin whichdeleted text end new text begin thatnew text end is not used on a regular and continual basis in the performance of
these services. Nonoperating property also includes that portion of a deleted text begin generaldeleted text end corporation
office building and its proportionate share of land deleted text begin whichdeleted text end new text begin thatnew text end is not used for deleted text begin railwaydeleted text end new text begin railroadnew text end
operation or purpose.new text begin Nonoperating property is assessed by the local or county assessor.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 5.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Company. new text end
new text begin
"Company" means any corporation, limited liability company,
association, partnership, trust, estate, fiduciary, public or private organization of any kind,
or any other legal entity.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 6.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Unit value. new text end
new text begin
"Unit value" means the value of the whole integrated system
of a railroad company operating as a going concern without regard to the value of its
component parts.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 7.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Book depreciation. new text end
new text begin
"Book depreciation" means the accumulated
depreciation shown by a railroad company on its books or allowed to the company by
the Surface Transportation Board.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 8.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 9. new text end
new text begin Equalization. new text end
new text begin
"Equalization" means the adjustment of the estimated value
of railroad operating property to the apparent sales ratio of commercial and industrial
property.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 9.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin Exempt property. new text end
new text begin
"Exempt property" means property that is nontaxable
for ad valorem tax purposes under Minnesota Statutes, including personal property exempt
from taxation under chapter 272.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 10.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Original cost. new text end
new text begin
"Original cost" means the amount paid for an asset
by the current owner, as recorded on the railroad's books or allowed by the Surface
Transportation Board.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 11.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 12. new text end
new text begin System. new text end
new text begin
"System" means a railroad's total real and personal property used
in its railroad operations.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 12.
Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:
new text begin Subd. 13. new text end
new text begin Minnesota allocated value. new text end
new text begin
"Minnesota allocated value" means the value
of a railroad company's operating property that is assigned to Minnesota for tax purposes.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 13.
Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:
Subdivision 1.
Valuation of operating property.
The operating property of every
railroad company doing business in Minnesota shall be valued by the commissioner in the
manner prescribed by sections deleted text begin 270.80deleted text end new text begin 273.3712new text end to deleted text begin 270.87deleted text end new text begin 273.3719new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 14.
Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:
Subd. 3.
Determination of type of property.
new text begin (a) new text end The commissioner deleted text begin shall havedeleted text end new text begin hasnew text end
exclusive primary jurisdiction to determine deleted text begin whatdeleted text end new text begin whether railroad propertynew text end is operating
property deleted text begin and what isdeleted text end new text begin ornew text end nonoperating property. In making deleted text begin suchdeleted text end new text begin thenew text end determination, the
commissioner deleted text begin shalldeleted text end new text begin maynew text end solicit information and opinions from outside the department
and afford all interested persons an opportunity to submit data or views on the subject
in writing or orally.
new text begin (b)new text end Local new text begin and county new text end assessors may submit written requests to the commissioner,
asking for a determination deleted text begin of the nature of specificdeleted text end new text begin whethernew text end property owned by a
railroad and located within their assessing jurisdictionnew text begin is operating or nonoperatingnew text end . deleted text begin Any
determination made by the commissioner may be appealed by the assessor to the Tax Court
pursuant to chapter 271.deleted text end new text begin The requests must be submitted by April 1 of the assessing year.
The commissioner must send the assessor a written determination by May 1. Assessors
may appeal determinations made by the commissioner to the Tax Court under chapter 271.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 15.
Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Deduction for nonoperating and exempt property. new text end
new text begin
Property that was
part of the system, but is nonoperating property or is exempt from ad valorem taxation, is
excluded from the Minnesota allocated value under section 273.3718, subdivision 1a. Only
qualifying property located in Minnesota may be deducted from the Minnesota allocated
value. The commissioner must deduct the market value of the property to be excluded. This
must be calculated by multiplying the book value of the property by the market-to-book
ratio of the unit. The company has the burden of proof to establish the property should
be excluded from the Minnesota allocated value. The railroad company must submit
schedules of exempt or nonoperating property as required by the commissioner. The
remaining amount after this deduction is the Minnesota apportionable market value.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 16.
Minnesota Statutes 2014, section 270.82, is amended to read:
270.82 REPORTS OF RAILROAD COMPANIES.
Subdivision 1.
Annual report required.
new text begin Before March 31, new text end every railroad company
doing business in Minnesota deleted text begin shall annuallydeleted text end new text begin mustnew text end file with the commissioner deleted text begin on or before
March 31 adeleted text end new text begin an annualnew text end report under oath setting forth the information prescribed by the
commissioner to enable the commissioner to make the valuation and equalization required
by sections deleted text begin 270.80deleted text end new text begin 273.3712new text end to deleted text begin 270.87.deleted text end new text begin 273.3719. The commissioner shall prescribe the
content, format, and manner of the report pursuant to section 270C.30. If a report is made
by electronic means, the taxpayer's signature is defined under section 270C.304, except
that a law administered by the commissioner includes the property tax laws.
new text end
Subd. 2.
Extension of time.
new text begin If new text end the commissioner deleted text begin for gooddeleted text end new text begin determines there is
reasonablenew text end causenew text begin , the commissionernew text end may extend new text begin the time for filing the report required by
subdivision 1 new text end for up to 15 days deleted text begin the time for filing the report required by subdivision 1deleted text end .
new text begin Subd. 3. new text end
new text begin Amended reports. new text end
new text begin
A railroad company may file an amended report to
correct or add information to the original report. Amended reports must be filed with
the commissioner by April 30.
new text end
new text begin Subd. 4. new text end
new text begin Failure to file reports. new text end
new text begin
(a) The commissioner may make the valuation
provided by sections 273.3712 to 237.3719 according to the commissioner's best judgment
based on available information, if any railroad company does not:
new text end
new text begin
(1) make the report required by this section;
new text end
new text begin
(2) permit an inspection and examination of its property, records, books, accounts,
or other papers when requested by the commissioner; or
new text end
new text begin
(3) appear before the commissioner or a person appointed under section 273.3715
when required to do so.
new text end
new text begin
(b) If the commissioner makes the valuation under paragraph (a), the commissioner's
valuation is final. Notwithstanding any other law to the contrary, the commissioner's
valuation made under this subdivision is not administratively appealable.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 17.
Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:
Subdivision 1.
Powers of commissioner.
The commissioner deleted text begin shall havedeleted text end new text begin hasnew text end the
power to examine or cause to be examined any books, papers, records, or memoranda
relevant to the determination of the valuation of operating property deleted text begin as herein provideddeleted text end .
The commissioner deleted text begin shall have the further power todeleted text end new text begin maynew text end require the attendance of any
person having knowledge or information deleted text begin in the premisesdeleted text end new text begin concerning the valuation of the
operating propertynew text end , deleted text begin todeleted text end compel the production of books, papers, records, or memoranda by
persons so required to attend, deleted text begin todeleted text end take testimony on matters material to deleted text begin such determinationdeleted text end new text begin
determine the valuation of operating property,new text end and administer oaths or affirmations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 18.
Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:
Subd. 2.
Appointment of persons; subpoenas.
deleted text begin For the purpose of making such
examinations,deleted text end The commissioner may appoint deleted text begin such personsdeleted text end new text begin a personnew text end as the commissioner
deleted text begin may deemdeleted text end new text begin deemsnew text end necessarynew text begin to make the examinations described in subdivision 1new text end . deleted text begin Such
persons shall have the rights and powers of the examining ofdeleted text end new text begin An appointed person may
examinenew text end books, papers, recordsnew text begin ,new text end or memoranda, deleted text begin and of subpoenaingdeleted text end new text begin subpoenanew text end witnesses,
deleted text begin administeringdeleted text end new text begin administernew text end oaths and affirmations, and deleted text begin taking ofdeleted text end new text begin takenew text end testimonydeleted text begin , which are
conferred upon the commissioner herebydeleted text end . The court administrator of any court of record,
upon demand of any deleted text begin suchdeleted text end new text begin appointed new text end person, shall issue a subpoena for the attendance of
any witness or the production of any books, papers, records, or memoranda before such
person. The commissioner may also issue subpoenas for the appearance of witnesses
deleted text begin before the commissioner or before such persons. Disobedience of subpoenas so issued
shall be punished by the district court of the district in which the subpoena is issued for a
contempt of the district courtdeleted text end .new text begin Failure to comply with a subpoena shall be punished in the
same manner as contempt of the district court.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 19.
Minnesota Statutes 2014, section 270.84, is amended to read:
270.84 ANNUAL VALUATION OF OPERATING PROPERTY.
Subdivision 1.
Annual valuation; rules.
new text begin (a) new text end new text begin Before July 1, new text end the commissioner
deleted text begin shall annually between March 31 and May 31 make a determination ofdeleted text end new text begin must determinenew text end
the deleted text begin fairdeleted text end market value of the operating property of every railroad company doing business
in this state as of January 2 of the year in which the valuation is made. deleted text begin In making
this determination,deleted text end The commissioner deleted text begin shalldeleted text end new text begin mustnew text end employ generally accepted appraisal
principles and practicesnew text begin ,new text end which may include the unit method of determining valuedeleted text begin .deleted text end new text begin and
approaches approved by the Western States Association of Tax Administrators, National
Conference of Unit Valuation States, and the International Association of Assessing
Officers.
new text end
new text begin
(b) The unit value of railroad property is the reconciled value considering the cost,
income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must
be weighted in accordance with the reliability of the information and the commissioner's
judgment.
new text end
new text begin Subd. 1a. new text end
new text begin Cost approach. new text end
new text begin
(a) The commissioner may use the cost approach,
including but not limited to original cost less book depreciation and replacement cost
less depreciation.
new text end
new text begin
(b) Book depreciation is allowed as a deduction from an original cost model. Book
depreciation is assumed to include all forms of appraisal depreciation.
new text end
new text begin
(c) Explicitly calculated appraisal depreciation, including physical, functional, and
external obsolescence, is allowed as a deduction from the replacement cost model.
new text end
new text begin Subd. 1b. new text end
new text begin Income approach. new text end
new text begin
(a) The commissioner may use the income approach,
including but not limited to direct capitalization models and yield capitalization models.
new text end
new text begin
(b) The yield rate is calculated using market data on selected comparable companies
in the band of investment method. Discounted cash flows is a yield capitalization model
that calculates the present value of explicit cash flow forecasts capitalized using the
yield rate, plus revision to stable growth yield capitalization after the period of explicit
forecasts. Stable growth yield capitalization is a yield capitalization model that calculates
the present value of anticipated future cash flows, capitalized using the yield rate and
considering growth.
new text end
new text begin
(c) Direct capitalization is the expected net operating income for the following year,
divided by the direct capitalization rate. The direct capitalization rate is calculated by
using direct market observations from comparable sales or using market earning-to-price
information in the band of investment method.
new text end
new text begin Subd. 1c. new text end
new text begin Market approach. new text end
new text begin
The commissioner may use the market approach,
including but not limited to a sales comparison model, a stock and debt model, or other
market models that are available and reliable.
new text end
Subd. 2.
Notice.
The commissioner, after determining the deleted text begin fairdeleted text end market value of the
operating property of each railroad company, deleted text begin shall give notice todeleted text end new text begin must notifynew text end the railroad
company of the valuation deleted text begin by first class mail, overnight delivery, or messenger servicedeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 20.
Minnesota Statutes 2014, section 270.86, is amended to read:
270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.
Subdivision 1.
Apportionment of value.
deleted text begin Upon determiningdeleted text end new text begin (a) After allocating to
Minnesotanew text end the deleted text begin fairdeleted text end market value of the operating property of each railroad company, the
commissioner deleted text begin shalldeleted text end new text begin mustnew text end apportion deleted text begin suchdeleted text end new text begin thenew text end value to deleted text begin the respective counties and to the
deleted text end deleted text begin taxing districts therein in conformity with fair and reasonable rules and standards to be
established by the commissioner pursuant to notice and hearing, except as provided in
section 270.81. In establishing such rules and standards the commissioner may consider
(a) the physical situs of all station houses, depots, docks, wharves, and other buildings and
structures with an original cost in excess of $10,000; (b) the proportion that the length and
type of all the tracks used by the railroad in such county and taxing district bears to the
length and type of all the track used in the state; and (c) other facts as will result in a fair
and equitable apportionment of valuedeleted text end new text begin the operating parcels in Minnesotanew text end .
new text begin
(b) The apportioned market value of each company's operating parcel in Minnesota
is the current original cost of each parcel as of the last assessment date plus original cost
of new construction minus the original cost of property retired since the last assessment
date. The total Minnesota apportionable market value of the railroad is divided by the
total current original cost of the railroad in Minnesota to determine a percentage. The
resulting percentage is multiplied by the current original cost of each parcel to determine
the apportioned market value of each parcel.
new text end
new text begin Subd. 1a. new text end
new text begin Allocation of value. new text end
new text begin
(a) After the market value of operating property has
been estimated, the portion of value that is attributable to Minnesota must be determined
by calculating an allocation percentage using factors relevant to the industry segment of
the railroad company. The allocation percentage must be multiplied by the value of the
operating property to determine the Minnesota allocated value.
new text end
new text begin
(b) The Minnesota allocated value is determined by averaging the following factors:
new text end
new text begin
(1) miles of railroad track operated in Minnesota divided by miles of railroad track
operated in all states;
new text end
new text begin
(2) ton miles of revenue freight transported in Minnesota divided by ton miles of
revenue freight transported in all states;
new text end
new text begin
(3) gross revenues from transportation operations within Minnesota divided by gross
revenues from transportation operations in all states; and
new text end
new text begin
(4) cost of railroad property in Minnesota divided by cost of railroad property in
all states.
new text end
new text begin
(c) Each of the available factors must be weighted equally.
new text end
Subd. 2.
Equalized valuation.
After making the apportionment provided in
subdivision 1, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end determine the equalized valuation of the
operating property in each county by applying to the apportioned value an estimated
current year median sales ratio for all commercial and industrial property in that county. If
the commissioner deleted text begin decidesdeleted text end new text begin determinesnew text end there are insufficient sales to determine a median
commercial-industrial sales ratio, an estimated current year countywide median sales ratio
for all property deleted text begin shalldeleted text end new text begin mustnew text end be applied to the apportioned value. deleted text begin No equalization shalldeleted text end new text begin
Equalization must notnew text end be made to the market value of the operating property if the median
sales ratio determined pursuant to this subdivision is deleted text begin within fivedeleted text end new text begin at least 90 but less than
105new text end percent of the assessment ratio of the railroad operating property.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 21.
Minnesota Statutes 2014, section 270.87, is amended to read:
270.87 CERTIFICATION TO COUNTY ASSESSORS.
deleted text begin After making an annual determination of the equalized fair market value of the
operating property of each company in each of the respective counties, and in the taxing
districts therein,deleted text end The commissioner deleted text begin shalldeleted text end new text begin mustnew text end certify the equalized deleted text begin fairdeleted text end market value new text begin of
the operating property new text end to the county assessor deleted text begin on ordeleted text end before deleted text begin June 30deleted text end new text begin August 1new text end . The equalized
deleted text begin fairdeleted text end market value of the operating property of the railroad company in the county and the
taxing districts therein is the value on which taxes must be levied and collected in the
same manner as on the commercial and industrial property deleted text begin of such county and the taxing
districts thereindeleted text end new text begin in the counties and taxing districtsnew text end . If the commissioner determines deleted text begin thatdeleted text end
the equalized deleted text begin fairdeleted text end market value certified deleted text begin on ordeleted text end before deleted text begin June 30deleted text end new text begin August 1new text end is in error, the
commissioner may issue a corrected certification deleted text begin on ordeleted text end before deleted text begin August 31deleted text end new text begin October 1new text end . The
commissioner may correct errors that are merely clerical in nature until December 31.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 22.
Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
Subd. 9.
Personal property; exceptions.
new text begin (a) new text end Except for the taxable personal
property enumerated below, all personal property and the property described in section
272.03, subdivision 1, paragraphs (c) and (d), shall be exempt.
new text begin (b) new text end The following personal property shall be taxable:
deleted text begin (a)deleted text end new text begin (1)new text end personal property which is part of an electric generating, transmission, or
distribution system or a pipeline system transporting or distributing water, gas, crude
oil, or petroleum products or mains and pipes used in the distribution of steam or hot or
chilled water for heating or cooling buildings and structures;
deleted text begin (b) railroad docks and wharves which are part of thedeleted text end new text begin (2) personal property that is part
of the new text end operating property of a railroad companynew text begin ,new text end as defined in section deleted text begin 270.80deleted text end new text begin 273.3712new text end ;
deleted text begin (c)deleted text end new text begin (3)new text end personal property defined in section 272.03, subdivision 2, clause (3);
deleted text begin (d)deleted text end new text begin (4)new text end leasehold or other personal property interests which are taxed pursuant to
section 272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any
other law providing the property is taxable as if the lessee or user were the fee owner;
deleted text begin (e)deleted text end new text begin (5)new text end manufactured homes and sectional structures, including storage sheds, decks,
and similar removable improvements constructed on the site of a manufactured home,
sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
8, paragraph (f); and
deleted text begin (f)deleted text end new text begin (6)new text end flight property as defined in section 270.071.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 23.
Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined in
this section. The state general levy base amount is deleted text begin $592,000,000deleted text end new text begin $889,600,000new text end for taxes
payable in deleted text begin 2002deleted text end new text begin 2016new text end . For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base amount for the prior year by the sum
of one plus the rate of increase, if any, in the implicit price deflator for government
consumption expenditures and gross investment for state and local governments prepared
by the Bureau of Economic Analysts of the United States Department of Commerce for
the 12-month period ending March 31 of the year prior to the year the taxes are payable.
The tax under this section is not treated as a local tax rate under section 469.177 and is not
the levy of a governmental unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 24.
Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
Subd. 4.
Apportionment and levy of state general tax.
deleted text begin Ninety-fivedeleted text end new text begin 95.1new text end percent of
the state general tax must be levied by applying a uniform rate to all commercial-industrial
tax capacity and deleted text begin fivedeleted text end new text begin 4.9new text end percent of the state general tax must be levied by applying a
uniform rate to all seasonal residential recreational tax capacity. On or before October 1
each year, the commissioner of revenue shall certify the preliminary state general levy
rates to each county auditor that must be used to prepare the notices of proposed property
taxes for taxes payable in the following year. By January 1 of each year, the commissioner
shall certify the final state general levy rate to each county auditor that shall be used
in spreading taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 25. new text begin APPROPRIATIONS.
new text end
new text begin
The following sums are appropriated from the general fund to the agency to
implement the provisions of this article as follows: $266,000 in fiscal year 2016, $14,000
in fiscal year 2017, $13,000 in fiscal year 2018, and $11,000 in fiscal year 2019. The sums
indicated in this section for fiscal years 2016, 2017, and 2018 are onetime appropriations
and are not added to the agency's permanent base. The sum indicated in this section for
fiscal year 2019 shall become part of the agency's base.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
in column A to the references listed in column B. The revisor shall also make necessary
cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with
renumbering.
new text end
|
new text begin
Column A new text end |
new text begin
Column B new text end |
|
|
new text begin
270.80 new text end |
new text begin
273.3712 new text end |
|
|
new text begin
270.81 new text end |
new text begin
273.3713 new text end |
|
|
new text begin
270.82 new text end |
new text begin
273.3714 new text end |
|
|
new text begin
270.83 new text end |
new text begin
273.3715 new text end |
|
|
new text begin
270.84 new text end |
new text begin
273.3716 new text end |
|
|
new text begin
270.85 new text end |
new text begin
273.3717 new text end |
|
|
new text begin
270.86 new text end |
new text begin
273.3718 new text end |
|
|
new text begin
270.87 new text end |
new text begin
273.3719 new text end |
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end
Sec. 27. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3,
new text end
new text begin
and
new text end
new text begin
Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17,
17a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600;
8106.0700; 8106.0800; and 8106.9900,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2016 and
thereafter.
new text end