HF 3977

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/03/2022 02:05pm

A bill for an act
relating to taxation; establishing electric generation transition aid to local
governments; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 477A.

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

Section 1.

[477A.23] ELECTRIC GENERATION TRANSITION AID.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Electric generation property" means taxable property of an electric generating plant
owned by a public utility, as defined in section 216B.02, that is powered by coal, nuclear,
or natural gas, and located in an eligible taxing jurisdiction.

(c) "Electric generating unit" means a single solid fuel-fired steam generating unit at an
electric generating plant that serves a generator that produces electricity for sale to the
electric grid.

(d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city,
town, or school district.

(e) "Unit base year" means the assessment year in which the tax capacity of an electric
generating unit is removed from the property tax base due to retirement of the electric
generating unit.

(f) "Unit differential" means (1) the tax capacity of electric generation property in the
assessment year preceding the unit base year, minus (2) the tax capacity of electric generation
property in the unit base year. The unit differential may not be less than zero.

Subd. 2.

Required notification.

A public utility must notify the commissioner when
the public utility expects to retire an electric generating unit and remove that unit from the
property tax base. The notification must be in the form and manner determined by the
commissioner, must include information required by the commissioner to calculate transition
aid under this section, and must be filed together with the reports required under section
273.371.

Subd. 3.

Unit transition amount.

(a) The initial unit transition amount equals the product
of (1) the unit differential, times (2) the jurisdiction's tax rate for taxes payable in the unit
base year.

(b) The unit transition amount for the year following the unit base year, or in the year
as provided under subdivision 6, equals the initial unit transition amount. Unit transition
amounts in subsequent years must be reduced each year by an amount equal to five percent
of the initial unit transition amount. If the unit transition amount attributable to any unit is
less than $5,000 in any year, the unit transition amount for that unit equals zero.

Subd. 4.

Electric generation transition aid.

Electric generation transition aid for an
eligible taxing jurisdiction equals the sum of the unit transition amounts for that jurisdiction.

Subd. 5.

Commissioner's duties; payment schedule.

(a) The commissioner of revenue
shall compute the amount of electric generation transition aid payable to each jurisdiction
under this section. On or before August 1 of each year, the commissioner shall certify the
amount of aid computed for aids payable in the following year for each jurisdiction. The
commissioner shall pay aid to each jurisdiction annually at the times provided in section
477A.015.

(b) The commissioner of revenue may require counties to provide any data that the
commissioner deems necessary to administer this section.

Subd. 6.

Aid for prior unit retirements.

An electric generating unit with a unit base
year after 2016 but before 2022 must be counted for the purpose of calculating aid under
this section. For a unit eligible to be counted under this subdivision, for the purpose of the
schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2022.

Subd. 7.

Appropriation.

An amount sufficient to pay transition aid under this section
is annually appropriated from the general fund to the commissioner of revenue.

EFFECTIVE DATE.

This section is effective for aids payable in 2023 and thereafter.