HF 536

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a reduction in the assessed market value of energy
efficient new commercial property; amending Minnesota Statutes 2006, section
273.11, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 273.11, is amended by adding a
subdivision to read:

new text begin Subd. 24. new text end

new text begin Valuation of energy efficient commercial property. new text end

new text begin (a) The market
value of certain energy efficient property classified under section new text begin 273.13, subdivision 24 new text end ,
that is used for commercial purposes, is reduced as provided in this subdivision.
new text end

new text begin (b) To be eligible for a valuation reduction under this subdivision, property must be
certified by a qualified inspector as having been constructed in a manner that will achieve
a level of energy consumption that is at least 20 percent lower than the standard set in
the state energy code rules. The percentage reduction in the market value of a qualifying
property is determined as follows:
new text end

new text begin percentage of energy consumption below energy code requirement new text end	new text begin market value reduction new text end
new text begin 20-30 new text end	new text begin 5 new text end
new text begin 31-50 new text end	new text begin 10 new text end
new text begin over 50 new text end	new text begin 15 new text end

new text begin The reductions remain in effect for the first ten assessment years after the property has
been certified as qualifying under this subdivision.
new text end

new text begin (c) The Department of Commerce must establish a process for determining eligibility
for the valuation reduction under this subdivision, including certification of persons who
are qualified to perform this function.
new text end

new text begin (d) To claim a valuation reduction under this subdivision, the owner of the
commercial property must obtain a certification of the level of qualification determined
under paragraph (b), which must be prepared by a person certified as provided in
paragraph (c). The property owner must furnish this certification to the assessor by May 1
of the assessment year in order to qualify for the valuation reduction for taxes payable in
the following year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments in 2007, taxes
payable in 2008, and thereafter.
new text end