HF 3126

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; eliminating the property tax 
  1.3             exemption for pollution control equipment that is part 
  1.4             of an electric utility system; amending Minnesota 
  1.5             Statutes 2002, section 272.02, subdivisions 10, 41. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 272.02, 
  1.8   subdivision 10, is amended to read: 
  1.9      Subd. 10.  [PERSONAL PROPERTY USED FOR POLLUTION CONTROL.] 
  1.10  Personal property used primarily for the abatement and control 
  1.11  of air, water, or land pollution is exempt to the extent that it 
  1.12  is so used, and real property is exempt if it is used primarily 
  1.13  for abatement and control of air, water, or land pollution as 
  1.14  part of an agricultural operation, or as a part of a centralized 
  1.15  treatment and recovery facility operating under a permit issued 
  1.16  by the Minnesota Pollution Control Agency pursuant to chapters 
  1.17  115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 
  1.18  and 7045.0020 to 7045.1260, as a wastewater treatment facility 
  1.19  and for the treatment, recovery, and stabilization of metals, 
  1.20  oils, chemicals, water, sludges, or inorganic materials from 
  1.21  hazardous industrial wastes, or as part of an electric 
  1.22  generation system.  For purposes of this subdivision, personal 
  1.23  property includes ponderous machinery and equipment used in a 
  1.24  business or production activity that at common law is considered 
  1.25  real property. 
  2.1      Any taxpayer requesting exemption of all or a portion of 
  2.2   any real property or any equipment or device, or part thereof, 
  2.3   operated primarily for the control or abatement of air, water, 
  2.4   or land pollution shall file an application with the 
  2.5   commissioner of revenue.  The Minnesota Pollution Control Agency 
  2.6   shall upon request of the commissioner furnish information and 
  2.7   advice to the commissioner.  
  2.8      The information and advice furnished by the Minnesota 
  2.9   Pollution Control Agency must include statements as to whether 
  2.10  the equipment, device, or real property meets a standard, rule, 
  2.11  criteria, guideline, policy, or order of the Minnesota Pollution 
  2.12  Control Agency, and whether the equipment, device, or real 
  2.13  property is installed or operated in accordance with it.  On 
  2.14  determining that property qualifies for exemption, the 
  2.15  commissioner shall issue an order exempting the property from 
  2.16  taxation.  The equipment, device, or real property shall 
  2.17  continue to be exempt from taxation as long as the order issued 
  2.18  by the commissioner remains in effect. 
  2.19     [EFFECTIVE DATE.] This section is effective for taxes 
  2.20  levied in 2005, payable in 2006, and thereafter, but only if the 
  2.21  Department of Revenue has adopted rules after December 31, 2004, 
  2.22  and before August 1, 2005, that prescribe a method of valuing 
  2.23  electric utility property, and the commissioner of revenue has 
  2.24  estimated that the statewide aggregate market value of electric 
  2.25  utility real and personal property will be reduced by ... 
  2.26  percent or more as a result of implementation of the rules. 
  2.27     Sec. 2.  Minnesota Statutes 2002, section 272.02, 
  2.28  subdivision 41, is amended to read: 
  2.29     Subd. 41.  [POLLUTION ABATEMENT CERTAIN UTILITY PROPERTY.] 
  2.30  Property, including real property, qualifies as exempt pollution 
  2.31  abatement property under subdivision 10, is exempt from taxation 
  2.32  if the following conditions are satisfied. 
  2.33     (a)(1) The property is part of a refuse-derived fuel 
  2.34  facility converted from a coal burning electric generation 
  2.35  facility and the property consists of:  
  2.36     (i) boiler modifications necessary to efficient handling 
  3.1   and burning of refuse-derived fuel and transfer of the heat 
  3.2   produced by combustion of the fuel; 
  3.3      (ii) ash handling and storage systems, such as 
  3.4   vacuum-pneumatic equipment, conveyors, crushers, and storage 
  3.5   buildings to remove, convey, process, and temporarily store 
  3.6   bottom and fly ash from the burning of refuse-derived fuel; 
  3.7      (iii) control systems, such as computers, to control the 
  3.8   operation of equipment described in clauses (i) to (iv) and 
  3.9   other pollution abatement equipment; and 
  3.10     (iv) equipment to monitor emissions into the air and 
  3.11  combustion efficiency; or 
  3.12     (2) the property is a solid waste resource recovery mass 
  3.13  burn facility. 
  3.14     (b) The facility was constructed and will be operated under 
  3.15  a contractual arrangement providing for payment, in whole or 
  3.16  part, of the property tax on the property by a political 
  3.17  subdivision of the state. 
  3.18     [EFFECTIVE DATE.] This section is effective for taxes 
  3.19  levied in 2005, payable in 2006, and thereafter, but only if the 
  3.20  Department of Revenue has adopted rules after December 31, 2004, 
  3.21  and before August 1, 2005, that prescribe a method of valuing 
  3.22  electric utility property, and the commissioner of revenue has 
  3.23  estimated that the statewide aggregate market value of electric 
  3.24  utility real and personal property will be reduced by ... 
  3.25  percent or more as a result of implementation of the rules.