HF 3450

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; production tax; exempting wind 
  1.3             energy conversion systems installed after January 1, 
  1.4             2002, from the property tax; providing for a 
  1.5             production tax on electricity from wind energy 
  1.6             conversion systems installed after January 1, 2002; 
  1.7             amending Minnesota Statutes 2001 Supplement, section 
  1.8             272.02, subdivision 22; proposing coding for new law 
  1.9             in Minnesota Statutes, chapter 272; repealing 
  1.10            Minnesota Statutes 2001 Supplement, section 272.028. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [272.029] [WIND ENERGY PRODUCTION TAX.] 
  1.13     Subdivision 1.  [PRODUCTION TAX.] A tax is imposed on the 
  1.14  production of electricity from a wind energy conversion system 
  1.15  installed or substantially modified after December 31, 2001, and 
  1.16  that is used as an electric power source. 
  1.17     Subd. 2.  [DEFINITIONS.] (a) For the purposes of this 
  1.18  section, the term: 
  1.19     (1) "wind energy conversion system" has the meaning given 
  1.20  in section 216C.06, subdivision 12; 
  1.21     (2) "large scale wind energy conversion system" means a 
  1.22  wind energy conversion system of more than 12 megawatts, as 
  1.23  measured by the nameplate capacity of the system or as combined 
  1.24  with other systems as provided in paragraph (b); 
  1.25     (3) "medium scale wind energy conversion system" means a 
  1.26  wind energy conversion system of between two and 12 megawatts, 
  1.27  as measured by the nameplate capacity of the system or as 
  1.28  combined with other systems as provided in paragraph (b); 
  2.1      (4) "small scale wind energy conversion system" means a 
  2.2   wind energy conversion system of two megawatts and under, as 
  2.3   measured by the nameplate capacity of the system or as combined 
  2.4   with other systems as provided in paragraph (b). 
  2.5      (b) The total size of a wind energy conversion system under 
  2.6   paragraph (a) shall be determined in the same manner as provided 
  2.7   under section 272.02, subdivision 22, paragraphs (e) and (f).  
  2.8      Subd. 3.  [RATE OF TAX.] (a) The owner of a wind energy 
  2.9   conversion system shall pay a tax based on the following 
  2.10  schedule: 
  2.11     (1) for a large scale wind energy conversion system, ... 
  2.12  cents per kilowatt-hour of electricity produced by the system; 
  2.13  and 
  2.14     (2) for a medium scale wind energy conversion system, ... 
  2.15  cents per kilowatt-hour of electricity produced by the system; 
  2.16  and 
  2.17     (3) for a small scale wind energy conversion system of less 
  2.18  than two megawatts, but greater than .25 megawatts capacity, ... 
  2.19  cents per kilowatt-hour of electricity produced by the system; 
  2.20  and 
  2.21     (4) small scale wind energy conversion systems with the 
  2.22  capacity of .25 megawatts or less are exempt from the wind 
  2.23  energy production tax. 
  2.24     (b) The commissioner of revenue shall annually adjust the 
  2.25  wind energy production tax rates under paragraph (a) by using 
  2.26  the most currently available Consumer Price Index (CPI). 
  2.27     Subd. 4.  [REPORTS.] An owner of a wind energy conversion 
  2.28  system subject to tax under this section shall file a report 
  2.29  with the commissioner of revenue annually on or before March 1 
  2.30  detailing the amount of electricity in kilowatt-hours that was 
  2.31  produced by the wind energy conversion system for the previous 
  2.32  calendar year.  The commissioner shall prescribe the form of the 
  2.33  report.  The report must contain the information required by the 
  2.34  commissioner to determine the tax due to each county under this 
  2.35  section for the current year.  If an owner of a wind energy 
  2.36  conversion system subject to taxation under this section fails 
  3.1   to file the report by the due date, the commissioner of revenue 
  3.2   shall determine the tax based upon the nameplate capacity of the 
  3.3   system multiplied by a capacity factor of 50 percent.  
  3.4      On or before March 31, the commissioner of revenue shall 
  3.5   notify the owner of the wind energy conversion systems of the 
  3.6   tax due to each county as determined under this subdivision and 
  3.7   shall certify to the county auditor of each county in which the 
  3.8   systems are located the tax amount due from each owner. 
  3.9      Subd. 5.  [PAYMENT OF TAX; COLLECTION.] The amount of 
  3.10  production tax determined under subdivision 4 must be paid to 
  3.11  the county treasurer at the time and in the manner provided for 
  3.12  payment of property taxes under section 277.01, subdivision 3, 
  3.13  and, if unpaid, are subject to the same enforcement, collection, 
  3.14  and interest and penalties as delinquent personal property taxes.
  3.15  Except to the extent inconsistent with this section, the 
  3.16  provisions of section 277.01 to 277.24 and 278.01 to 278.13 
  3.17  apply to the taxes imposed under this section, and for purposes 
  3.18  of those provisions the taxes imposed under this section are 
  3.19  considered personal property taxes. 
  3.20     Subd. 6.  [DISTRIBUTION OF REVENUES.] Revenues from the 
  3.21  taxes imposed under this section must be part of the settlement 
  3.22  between the county treasurer and the county auditor under 
  3.23  section 276.09.  The revenue must be distributed by the county 
  3.24  auditor and the county treasurer to all taxing jurisdictions in 
  3.25  which the wind energy conversion system is located, in the same 
  3.26  proportion that each of the taxing jurisdiction's current year's 
  3.27  net tax capacity based tax rate is to the current year's total 
  3.28  net tax capacity based tax rate. 
  3.29     [EFFECTIVE DATE.] This section is effective for energy 
  3.30  produced by wind energy conversion systems on or after January 
  3.31  1, 2002. 
  3.32     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  3.33  272.02, subdivision 22, is amended to read: 
  3.34     Subd. 22.  [WIND ENERGY CONVERSION SYSTEMS.] (a) All wind 
  3.35  energy systems installed or substantially modified on or after 
  3.36  January 1, 2002, are exempt from ad valorem taxes.  The land on 
  4.1   which the wind energy conversion system is located remains 
  4.2   taxable. 
  4.3      (b) Small scale wind energy conversion systems installed 
  4.4   after January 1, 1991, and before January 1, 2002, and used as 
  4.5   an electric power source are exempt. 
  4.6      "Small scale wind energy conversion systems" are wind 
  4.7   energy conversion systems, as defined in section 216C.06, 
  4.8   subdivision 12, including the foundation or support pad, which 
  4.9   (i) are used as an electric power source; (ii) are located 
  4.10  within one county and owned by the same owner; and (iii) produce 
  4.11  two megawatts or less of electricity as measured by nameplate 
  4.12  ratings. 
  4.13     (b) (c) Medium scale wind energy conversion systems 
  4.14  installed after January 1, 1991, and before January 1, 2002, are 
  4.15  treated as follows:  (i) the foundation and support pad are 
  4.16  taxable; (ii) the associated supporting and protective 
  4.17  structures are exempt for the first five assessment years after 
  4.18  they have been constructed, and thereafter, 30 percent of the 
  4.19  market value of the associated supporting and protective 
  4.20  structures are taxable; and (iii) the turbines, blades, 
  4.21  transformers, and its related equipment, are exempt.  "Medium 
  4.22  scale wind energy conversion systems" are wind energy conversion 
  4.23  systems as defined in section 216C.06, subdivision 12, including 
  4.24  the foundation or support pad, which:  (i) are used as an 
  4.25  electric power source; (ii) are located within one county and 
  4.26  owned by the same owner; and (iii) produce more than two but 
  4.27  equal to or less than 12 megawatts of energy as measured by 
  4.28  nameplate ratings. 
  4.29     (c) (d) Large scale wind energy conversion systems 
  4.30  installed after January 1, 1991, and before January 1, 2002, are 
  4.31  treated as follows:  25 percent of the market value of all 
  4.32  property is taxable, including (i) the foundation and support 
  4.33  pad; (ii) the associated supporting and protective structures; 
  4.34  and (iii) the turbines, blades, transformers, and its related 
  4.35  equipment.  "Large scale wind energy conversion systems" are 
  4.36  wind energy conversion systems as defined in section 216C.06, 
  5.1   subdivision 12, including the foundation or support pad, which 
  5.2   (i) are used as an electric power source; and (ii) produce more 
  5.3   than 12 megawatts of energy as measured by nameplate ratings. 
  5.4      (d) (e) The total size of a wind energy conversion system 
  5.5   under this subdivision shall be determined according to this 
  5.6   paragraph. Unless the systems are interconnected with different 
  5.7   distribution systems, the nameplate capacity of one wind energy 
  5.8   conversion system shall be combined with the nameplate capacity 
  5.9   of any other wind energy conversion system that is: 
  5.10     (1) located within five miles of the wind energy conversion 
  5.11  system; 
  5.12     (2) constructed within the same calendar year as the wind 
  5.13  energy conversion system; and 
  5.14     (3) under common ownership.  
  5.15     In the case of a dispute, the commissioner of commerce 
  5.16  shall determine the total size of the system, and shall draw all 
  5.17  reasonable inferences in favor of combining the systems. 
  5.18     (e) (f) In making a determination under paragraph (d) (e), 
  5.19  the commissioner of commerce may determine that two wind energy 
  5.20  conversion systems are under common ownership when the 
  5.21  underlying ownership structure contains similar persons or 
  5.22  entities, even if the ownership shares differ between the two 
  5.23  systems.  Wind energy conversion systems are not under common 
  5.24  ownership solely because the same person or entity provided 
  5.25  equity financing for the systems. 
  5.26     [EFFECTIVE DATE.] This section is effective for assessment 
  5.27  year 2002 and thereafter. 
  5.28     Sec. 3.  [REPEALER.] 
  5.29     Minnesota Statutes 2001 Supplement, section 272.028, is 
  5.30  repealed. 
  5.31     [EFFECTIVE DATE.] This section is effective for assessment 
  5.32  year 2002 and thereafter.