SF 2268

Introduction - 84th Legislature (2005 - 2006)

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

A bill for an act
relating to taxation; providing a state-paid credit
for taxes paid on pollution control equipment used by
electric utilities; eliminating the property tax
exemption for pollution control equipment that is part
of an electric utility system; appropriating money;
amending Minnesota Statutes 2004, section 272.02,
subdivisions 10, 41; proposing coding for new law in
Minnesota Statutes, chapter 273.

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.

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 deleted text begin , deleted text end new text begin or new text end 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 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 2006, payable in 2007, and thereafter.
new text end

Sec. 2.

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

Subd. 41.

deleted text begin pollution abatement deleted text end new text begin certain utility new text end property.

Property, including real property, deleted text begin qualifies as exempt pollution
abatement property under subdivision 10, deleted text end new text begin is exempt from taxation
new 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 2006, payable in 2007, and thereafter.
new text end

Sec. 3.

new text begin [273.421] CREDIT FOR TAX ON POLLUTION CONTROL
EQUIPMENT OF ELECTRIC UTILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Amount of credit. new text end

new text begin The auditor of each
county in which is located an electric generating facility that
contains pollution control equipment that would have been exempt
from taxation under Minnesota Statutes 2004, section 272.02,
subdivision 10, shall annually determine the amount of property
tax payable on that equipment by the electric generating
facility. The electric generating facility property will
receive a credit against its property tax equal to that amount.
new text end

new text begin Subd. 2. new text end

new text begin Deduction of credit amount. new text end

new text begin One-half of the
credit under this section must be deducted from each of the
installments of taxes payable under section 279.01, subdivision
1. The amount of the reduction must be reported to the
commissioner of revenue as part of the abstracts of tax lists
required to be filed with the commissioner under section 275.29.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation; reimbursement. new text end

new text begin There is annually
appropriated from the general fund to the commissioners of
revenue and education the amount necessary to replace the
revenue lost to local units of government and school districts
as a result of the reduction in property taxes provided in this
section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2007 and thereafter.
new text end