HF 36

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 04:19pm

A bill for an act
relating to taxation; modifying state general tax market value exclusion; amending
Minnesota Statutes 2018, section 275.025, subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 275.025, subdivision 2, is amended to read:

Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
as class 3 or class 5(1) under section 273.13, excluding:

(1) the tax capacity attributable to the first deleted text begin $100,000 deleted text end new text begin $500,000 new text end of market value of each
parcel of commercial-industrial property as defined under section 273.13, subdivision 24,
clauses (1) and (2);

(2) electric generation attached machinery under class 3; and

(3) property described in section 473.625.

County commercial-industrial tax capacity amounts are not adjusted for the captured
net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
the net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within the
first deleted text begin $100,000 deleted text end new text begin $500,000 new text end of market value.

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