SF 1172

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/13/2023 10:01am

A bill for an act
relating to taxation; establishing electric generation transition aid to local
governments; appropriating money; amending Minnesota Statutes 2022, section
273.1392; proposing coding for new law in Minnesota Statutes, chapter 477A.

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

Section 1.

Minnesota Statutes 2022, section 273.1392, is amended to read:

273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
aids and credits under section 273.1398; enterprise zone property credit payments under
section 469.171; deleted text begin and deleted text end metropolitan agricultural preserve reduction under section 473H.10 new text begin ;
and electric generation transition aid under section 477A.23 new text end for school districts, shall be
certified to the Department of Education by the Department of Revenue. The amounts so
certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 2.

new text begin [477A.23] ELECTRIC GENERATION TRANSITION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Electric generating unit" means a single generating unit at an electric generating
plant powered by coal, nuclear, or natural gas.
new text end

new text begin (c) "Electric generation property" means taxable property of an electric generating plant
owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by
coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
new text end

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

new text begin (e) "Unit base year" means the assessment year in which the assessed value of electric
generation property is reduced due to the retirement of the electric generating unit.
new text end

new text begin (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. The unit
differential equals zero if the tax capacity of electric generation property in the eligible
taxing jurisdiction in the assessment year preceding the unit base year is less than four
percent of the total net tax capacity of the eligible taxing jurisdiction in the assessment year
preceding the aid calculation year, as adjusted under section 473F.08, subdivision 2, or
276A.06, subdivision 2, as applicable, except that, in an eligible taxing jurisdiction with
multiple electric generating units, only the unit differential calculated upon the first retirement
of an electric generating unit in that jurisdiction following the effective date of this section
is subject to the reduction under this sentence.
new text end

new text begin Subd. 2. new text end

new text begin Required notification. new text end

new text begin Notwithstanding the requirements of Minnesota Rules,
chapter 8100, 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, include
information required by the commissioner to calculate transition aid under this section, and
be filed together with the reports required under section 273.371.
new text end

new text begin Subd. 3. new text end

new text begin Unit transition amount. new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin Subd. 4. new text end

new text begin Electric generation transition aid. new text end

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

new text begin Subd. 5. new text end

new text begin Aid elimination. new text end

new text begin (a) Notwithstanding subdivision 4, beginning for aid in the
year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing
jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's
total net tax capacity in the assessment year preceding the aid calculation year is greater
than the product of:
new text end

new text begin (1) 90 percent of the jurisdiction's total net tax capacity in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section;
times
new text end

new text begin (2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and
personal property in the assessment year preceding the aid calculation year to (ii) the
statewide total net tax capacity of real and personal property in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section.
new text end

new text begin (b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as
adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
new text end

new text begin (c) If aid to a jurisdiction attributable to a previous unit retirement has been eliminated
under this subdivision, the jurisdiction may qualify for aid under this section for subsequent
unit retirements.
new text end

new text begin (d) The requirements of this subdivision do not apply to the aid attributable to prior unit
retirements qualifying under subdivision 7.
new text end

new text begin Subd. 6. new text end

new text begin Commissioner's duties; payment schedule. new text end

new text begin (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 other than school districts annually at the
times provided in section 477A.015. Aids to school districts must be certified to the
commissioner of education and paid under section 273.1392.
new text end

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

new text begin Subd. 7. new text end

new text begin Aid for prior unit retirements. new text end

new text begin An electric generating unit with a unit base
year after 2016 but before 2023 must be counted for the purpose of calculating aid under
this section. For a unit eligible to be counted under this subdivision and for the purpose of
the schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2023.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the aid payments required by
this section to eligible taxing jurisdictions other than school districts is annually appropriated
from the general fund to the commissioner of revenue. An amount sufficient to make the
aid payments required by this section for school districts is annually appropriated from the
general fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 and thereafter.
new text end