Legislative Session number- 82

Bill Name: SF2191

Relating to electric utility property taxes; requiring local government units to
establish electric utility generation attached machinery personal property tax
replacement trust funds, authorizing agreements or contracts with other local
government units for shares of a Minnesota joint powers investment trust to
achieve a certain sum in the funds; authorizing the commissioner of finance to
issue state bonds to pay local units the amount necessary to establish the trust
funds and providing for commissioner conveyance to local units amounts to
replace the reduction in the electric utility generation attached machinery
personal property tax classification rate, requiring local units placement of
appropriations in the trust; providing for management and investment of the
trust funds; providing for retirement and replacement of electric utility
generation facilities in relation to the trust funds and for disposition of the
trust principal upon facility retirement, specifying certain limits on
termination of the trusts; requiring adjustment of the net tax capacity formula
for school districts with tax exempt electric generation personal property and
machinery for general education levy amount determination purposes, requiring
exclusion of the current value of electric generation system machinery,
maintaining the general education tax rate; requiring public utilities
commission adjustment of utility rates to reflect the reduced utility property
tax obligations resulting from certain tax reductions, requiring utilities to
file a tariff for a surcharge to collect funds for repayment of state revenue
bonds issued on behalf of the utility, providing for approval by the PUC;
exempting certain personal property used to generate electricity from certain
new generating plants from the property tax and providing a partial exemption
for existing plants or plants currently under construction, specifying certain
siting agreement requirements; reducing the property tax classification rate on
other electric generation system personal property; providing a state guarantee
on certain local bonds; providing for the computation of city net tax capacity
relating to the property tax classification rate reduction for electric
generation system personal property (ra)