HF 2367

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the commissioner of 
  1.3             revenue to provide limited property tax relief to a 
  1.4             public utility upon receiving certification by the 
  1.5             public utilities commission that the utility qualifies 
  1.6             for such relief; proposing coding for new law in 
  1.7             Minnesota Statutes, chapters 216B; and 272. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [216B.169] [LIMITED TAX RELIEF; PROCEDURE.] 
  1.10     Subdivision 1.  [PETITION FOR LIMITED TAX RELIEF.] A public 
  1.11  utility providing electric service at retail may petition the 
  1.12  commission for certification that the utility qualifies under 
  1.13  this section for the limited tax relief provided in section 
  1.14  272.0213. 
  1.15     Subd. 2.  [QUALIFICATION FOR LIMITED TAX RELIEF.] (a) To 
  1.16  qualify for limited relief under section 272.0213, the public 
  1.17  utility must demonstrate to the commission that all three of the 
  1.18  following conditions are met: 
  1.19     (1) the financial viability of the utility is in 
  1.20  substantial jeopardy, taking into account all relevant factors, 
  1.21  including the ability to attract adequate capital, the ability 
  1.22  to maintain sufficient operating revenue, and the ability to 
  1.23  provide safe and reliable electric service; 
  1.24     (2) the poor financial condition of the utility is not due 
  1.25  either to poor management of the utility or to superior 
  1.26  performance by competitors; and 
  2.1      (3) the limited tax relief provided for in section 272.0213 
  2.2   would be sufficient to restore the utility's financial viability.
  2.3      (b) The utility must provide any and all information the 
  2.4   commission deems necessary or helpful in assessing the financial 
  2.5   condition of the utility. 
  2.6      (c) The commission must make its determination under 
  2.7   paragraph (a) within 90 days of the filing of the petition under 
  2.8   subdivision 1. 
  2.9      Subd. 3.  [CERTIFICATION TO COMMISSIONER OF REVENUE.] (a) 
  2.10  Upon finding that all of the conditions listed in subdivision 2 
  2.11  have been met, the commission shall certify to the commissioner 
  2.12  of revenue that the utility qualifies for the limited tax relief 
  2.13  provided in section 272.0213. 
  2.14     (b) The certification issued under paragraph (a) shall 
  2.15  remain effective for three years, unless rescinded by the 
  2.16  commission.  Upon expiration of its original certification, the 
  2.17  utility may reapply under subdivision 1. 
  2.18     (c) During the period in which the certification is 
  2.19  effective, the utility has an ongoing responsibility to provide 
  2.20  the commission with any and all information necessary for the 
  2.21  commission to assess the financial condition of the utility.  
  2.22  The utility shall provide this information at least quarterly. 
  2.23     (d) Upon its own motion, or upon motion by the department 
  2.24  or the attorney general, the commission may, at any time during 
  2.25  the three-year certification period, require the utility to 
  2.26  demonstrate that the utility remains qualified for the limited 
  2.27  tax relief provided in section 272.0213.  If the commission 
  2.28  finds that the utility no longer qualifies for the tax relief, 
  2.29  the commission shall rescind the certification issued under 
  2.30  paragraph (a), and shall notify the commissioner of revenue. 
  2.31     Sec. 2.  [272.0213] [LIMITED TAX RELIEF FOR QUALIFIED 
  2.32  PUBLIC UTILITIES.] 
  2.33     (a) The property tax relief accruing to a public utility 
  2.34  qualifying for limited tax relief under section 216B.169 is 
  2.35  determined under this section. 
  2.36     (b) For purposes of computing the general education levy 
  3.1   under section 126C.13, the commissioner of the department of 
  3.2   children, families, and learning shall, notwithstanding section 
  3.3   127A.48, subdivision 1, use adjusted net tax capacities that are 
  3.4   modified according to the schedule in paragraph (d). 
  3.5      (c) For purposes of determining the general education 
  3.6   portion of a school district's tax rate, the county auditor 
  3.7   shall use net tax capacities that are modified according to the 
  3.8   schedule in paragraph (d).  The general education tax of any 
  3.9   property described in paragraph (d) shall be determined using 
  3.10  the property's net tax capacity as determined under paragraph 
  3.11  (d). 
  3.12     (d) For any period in which the public utility receives a 
  3.13  certificate under section 216B.169, and only for the purposes of 
  3.14  the general education levy specified in this section, the class 
  3.15  rate on the machinery used for generation of electricity has a 
  3.16  class rate of zero. 
  3.17     Sec. 3.  [EFFECTIVE DATE.] 
  3.18     Sections 1 and 2 are effective upon enactment by the 
  3.19  federal government or the state of Minnesota of legislation 
  3.20  requiring the state to implement retail competition for electric 
  3.21  service.  For the purpose of this section, "retail competition 
  3.22  for electric service" means a regulatory regime in which a 
  3.23  Minnesota retail electric customer may choose to purchase 
  3.24  electric energy as measured in kilowatt-hours or electric 
  3.25  generation capacity as measured in kilowatts from any qualified 
  3.26  vendor at market-determined prices notwithstanding Minnesota 
  3.27  Statutes 1998, section 216B.39.