HF 4937
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/13/2026 02:36 p.m.
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4.1
A bill for an act
relating to taxation; electric generation transition aid; modifying the criteria for
an eligible taxing jurisdiction to qualify for aid; modifying the calculation of aid;
amending Minnesota Statutes 2024, section 477A.24, subdivisions 1, 3, 5;
Minnesota Statutes 2025 Supplement, section 477A.24, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 477A.24, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Electric generating unit" means a single generating unit at an electric generating
plant powered by coal, nuclear, or natural gas.
(c) "Electric generation property" means taxable property of an electric generating plant
owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by
coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
(d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city,
town, or school district.
(e) "Unit base year" means the assessment year in which the assessed value of electric
generation property is reduced due to the retirement new text begin or fuel source conversion new text end of the electric
generating unit.
(f) "Unit differential" means (1) the tax capacity of electric generation property in the
assessment year preceding the unit base year, minus (2) the tax capacity of electric generation
property in the unit base year. The unit differential may not be less than zero. The unit
differential equals zero if the tax capacity of electric generation property in the eligible
taxing jurisdiction in the assessment year preceding the unit base year is less than four
percent of the total net tax capacity of the eligible taxing jurisdiction in that year, as adjusted
under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable, except that,
in an eligible taxing jurisdiction with multiple electric generating units, only the unit
differential calculated upon the first retirement new text begin or fuel source conversion new text end of an electric
generating unit in that jurisdiction following the effective date of this section is subject to
the reduction under this sentence.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2027 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2025 Supplement, section 477A.24, subdivision 2, is amended
to read:
Subd. 2.
Required notification.
Notwithstanding the requirements of Minnesota Rules,
chapter 8100, a public utility must notify the commissioner when the public utility expects
to retire an electric generating unit and remove that unit from the property tax basenew text begin , or to
convert an electric generating unit to a different fuel sourcenew text end . The notification must be in the
form and manner determined by the commissioner of revenue, include information required
by the commissioner to calculate transition aid under this section, and be filed together with
the reports required under section 273.371.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2027 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2024, section 477A.24, subdivision 3, is amended to read:
Subd. 3.
Unit transition amount.
new text begin
(a) If a jurisdiction certifies its tax rate for taxes
payable in the year following the unit base year to the commissioner of revenue on or before
April 1 of that year, the initial unit transition amount equals the product of (1) the unit
differential, times (2) the jurisdiction's tax rate for taxes payable in the year following the
unit base year.
new text end
deleted text begin (a)deleted text end new text begin (b) If a jurisdiction certifies its tax rate for taxes payable in the year following the
unit base year to the commissioner of revenue after April 1 of that year, new text end the initial unit
transition amount equals the product of (1) the unit differential, times (2) the jurisdiction's
tax rate for taxes payable in the unit base year.
deleted text begin (b)deleted text end new text begin (c)new text end The unit transition amount for the year following the unit base year, or in the year
as provided under subdivision 7, equals the initial unit transition amount. Unit transition
amounts in subsequent years must be reduced each year by an amount equal to five percent
of the initial unit transition amount. If the unit transition amount attributable to any unit is
less than $5,000 in any year, the unit transition amount for that unit equals zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2027 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2024, section 477A.24, subdivision 5, is amended to read:
Subd. 5.
Aid elimination.
(a) Notwithstanding subdivision 4, beginning for aid in the
year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing
jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's
total net tax capacity in the assessment year preceding the aid calculation year is greater
than the product of:
(1) deleted text begin 90 percent ofdeleted text end the jurisdiction's total net tax capacity in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section;
times
(2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and
personal property in the assessment year preceding the aid calculation year to (ii) the
statewide total net tax capacity of real and personal property in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section.
(b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as
adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
(c) If aid to a jurisdiction attributable to a previous unit retirement new text begin or fuel source
conversion new text end has been eliminated under this subdivision, the jurisdiction may qualify for aid
under this section for subsequent unit retirementsnew text begin and fuel source conversionsnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective retroactively for aids payable in 2024
and thereafter. Paragraph (c) is effective for aids payable in 2027 and thereafter.
new text end
Sec. 5. new text begin 2027 ELECTRIC GENERATION TRANSITION AID INCREASE; UNIT
RETIREMENTS.
new text end
new text begin
If aid to a jurisdiction attributable to a previous unit retirement was eliminated under
this subdivision for aids payable in 2024, 2025, or 2026, before the jurisdiction met the
criteria in Minnesota Statutes 2024, section 477A.24, subdivision 5, paragraph (a), as
amended by section 4, the aid payment calculated for the jurisdiction under Minnesota
Statutes, section 477A.24, subdivision 6, for aids payable in 2027 must be increased by the
unit transition amounts for that unit retirement for the aids payable years in which the
jurisdiction qualified for aid but did not receive aid attributable to that unit retirement.
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