HF 1128

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2013 01:52pm

A bill for an act
relating to taxation; property; providing a tax credit for pollution control
property; repealing the property tax exemption for certain pollution control
property; amending Minnesota Statutes 2012, sections 272.02, subdivision 10;
290.06, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, 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 new text begin that is not part of an
electric generation system new text end 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, new text begin or new text end 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 beginning for property taxes payable
in 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 38. new text end

new text begin Corporate tax credit; certain pollution control property. new text end

new text begin (a) For
purposes of this subdivision, "qualified property" means property that is part of an
electrical generation system and that is subject to ad valorem taxation, but that would
have qualified for exemption under section 272.02, subdivision 10, if the property were
not part of an electrical generation system.
new text end

new text begin (b) A credit is allowed against the taxes imposed by subdivision 1 and section
290.0921 for the taxable year equal to the ad valorem taxes incurred for the taxable year
on qualified property owned by a legal entity that is part of the same unitary business,
as defined in section 290.17, subdivision 4. The unitary business may allocate the credit
under this section to any of its members.
new text end

new text begin (c) In order to determine the amount of taxes qualifying for the credit under
paragraph (b) for each assessment year after 2012, the commissioner of revenue shall
determine the net tax capacity for each qualified property. The commissioner shall obtain
the appropriate local property tax rate for each qualified property and report the amount
to the owner. Upon request of the commissioner, the county auditor and assessor shall
provide any information necessary to administer the provisions of this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2014.
new text end