SF 2243

Introduction - 84th Legislature (2005 - 2006)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to taxation; limiting the exemption for
pollution control equipment of an electric generation
system; amending Minnesota Statutes 2004, section
272.02, subdivisions 10, 41.

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

Section 1.

Minnesota Statutes 2004, section 272.02,
subdivision 10, is amended to read:

Subd. 10.

Personal property used for pollution control.

new text begin (a) new text end 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, and 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, 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, or as part of an electric
generation system new text begin , subject to paragraph (b) new 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 (b) In order to qualify for an exemption under this
subdivision, real or personal property that is part of an
electric generating system must be used exclusively and
continuously for abatement of air or water pollution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
levied in 2005, payable in 2006, and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 272.02,
subdivision 41, is amended to read:

Subd. 41.

Pollution abatement property.

Property,
including real property, deleted text begin qualifies as deleted text end new text begin is new text end exempt deleted text begin pollution
abatement property under subdivision 10, deleted text end if the following
conditions are satisfied.

(a)(1) The property is part of a refuse-derived fuel
facility converted from a coal burning electric generation
facility and the property consists of:

(i) boiler modifications necessary to efficient handling
and burning of refuse-derived fuel and transfer of the heat
produced by combustion of the fuel;

(ii) ash handling and storage systems, such as
vacuum-pneumatic equipment, conveyors, crushers, and storage
buildings to remove, convey, process, and temporarily store
bottom and fly ash from the burning of refuse-derived fuel;

(iii) control systems, such as computers, to control the
operation of equipment described in clauses (i) to (iv) and
other pollution abatement equipment; and

(iv) equipment to monitor emissions into the air and
combustion efficiency; or

(2) the property is a solid waste resource recovery mass
burn facility.

(b) The facility was constructed and will be operated under
a contractual arrangement providing for payment, in whole or
part, of the property tax on the property by a political
subdivision of the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
levied in 2005, payable in 2006, and thereafter.
new text end