SF 1636

as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 09:10am

A bill for an act
relating to taxation; property; eliminating the personal property tax on electric
generation systems; instituting a new method of valuing personal property on
electric generation systems; authorizing transition aid; repealing exemptions;
appropriating money; amending Minnesota Statutes 2014, sections 126C.21,
subdivision 3; 216B.16, subdivision 6d; 216B.1621, subdivision 2; 216B.164,
subdivision 2a; 216B.2424, subdivision 5; 270C.01, subdivision 7; 272.02,
subdivision 9; 272.025, subdivision 1; 273.13, subdivision 24; 275.70,
subdivision 6; 275.71, subdivision 5; 469.315; proposing coding for new law
in Minnesota Statutes, chapters 273; 477A; repealing Minnesota Statutes 2014,
sections 272.02, subdivisions 10, 24, 29, 33, 44, 45, 52, 54, 55, 56, 68, 69, 70,
71, 84, 89, 92, 93, 96, 99; 272.0211; 272.029; 272.0295.

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

Section 1.

Minnesota Statutes 2014, section 126C.21, subdivision 3, is amended to read:

Subd. 3.

County apportionment deduction.

Each year the amount of money
apportioned to a district for that year pursuant to deleted text begin sections deleted text end new text begin section new text end 127A.34, subdivision 2,
deleted text begin and 272.029, subdivision 6, deleted text end must be deducted from the general education aid earned by
that district for the same year or from aid earned from other state sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2014, section 216B.16, subdivision 6d, is amended to read:

Subd. 6d.

Wind energy; property tax.

An owner of a wind energy conversion
facility which is required to pay property taxes under section 272.02, subdivision 22, or
deleted text begin production taxes under section 272.029 deleted text end new text begin section 273.129 new text end , and any related or successor
provisions, or a public utility regulated by the Public Utilities Commission which purchases
the wind-generated electricity may petition the commission to include in any power
purchase agreement between the owner of the facility and the public utility the amount of
property taxes and production taxes paid by the owner of the facility. The Public Utilities
Commission shall require the public utility to amend the power purchase agreement to
include the property taxes and production taxes paid by the owner of the facility in the
price paid by the utility for wind-generated electricity if the commission finds:

(1) the owner of the facility has paid the property taxes or production taxes required
by this subdivision;

(2) the power purchase agreement between the public utility and the owner does
not already require the utility to pay the amount of property taxes or production taxes the
owner has paid under this subdivision or, in the case of a power purchase agreement
entered into prior to 1997, the amount of property or production taxes paid by the owner
in any year of the power purchase agreement exceeds the amount of such property or
production taxes included in the price paid by the utility to the owner, as reflected in
the owner's bid documents; and

(3) the commission has approved a rate schedule containing provisions for the
automatic adjustment of charges for utility service in direct relation to the charges ordered
by the commission under section 272.02, subdivision 22, or deleted text begin 272.029 deleted text end new text begin 273.129 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2014, section 216B.1621, subdivision 2, is amended to read:

Subd. 2.

Commission approval.

(a) The commission shall approve an agreement
under this section upon finding that:

deleted text begin (1) the proposed electric service power generation facility could reasonably be
expected to qualify for a market value exclusion under section 272.0211;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end the public utility has a contractual option to purchase electric power from
the proposed facility; and

deleted text begin (3) deleted text end new text begin (2) new text end the public utility can use the output from the proposed facility to meet its
future need for power as demonstrated in the most recent resource plan filed with and
approved by the commission under section 216B.2422.

(b) Sections 216B.03, 216B.05, 216B.06, 216B.07, 216B.16, 216B.162, and
216B.23 do not apply to an agreement under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2014, section 216B.164, subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

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

(b) "Aggregated meter" means a meter located on the premises of a customer's
owned or leased property that is contiguous with property containing the customer's
designated meter.

(c) "Capacity" means the number of megawatts alternating current (AC) at the point
of interconnection between a distributed generation facility and a utility's electric system.

(d) "Cogeneration" means a combined process whereby electrical and useful thermal
energy are produced simultaneously.

(e) "Contiguous property" means property owned or leased by the customer sharing
a common border, without regard to interruptions in contiguity caused by easements,
public thoroughfares, transportation rights-of-way, or utility rights-of-way.

(f) "Customer" means the person who is named on the utility electric bill for the
premises.

(g) "Designated meter" means a meter that is physically attached to the customer's
facility that the customer-generator designates as the first meter to which net metered
credits are to be applied as the primary meter for billing purposes when the customer is
serviced by more than one meter.

(h) "Distributed generation" means a facility that:

(1) has a capacity of ten megawatts or less;

(2) is interconnected with a utility's distribution system, over which the commission
has jurisdiction; and

(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel,
and may include waste heat, cogeneration, or fuel cell technology.

(i) "High-efficiency distributed generation" means a distributed energy facility that
has a minimum efficiency of 40 percent, as calculated under new text begin Minnesota Statutes 2014,
new text end section 272.0211, subdivision 1.

(j) "Net metered facility" means an electric generation facility constructed for the
purpose of offsetting energy use through the use of renewable energy or high-efficiency
distributed generation sources.

(k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2.

(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
generation facility for the recovery of costs for the provision of standby services, as
provided for in a utility's tariffs approved by the commission, necessary to make electricity
service available to the distributed generation facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2014, section 216B.2424, subdivision 5, is amended to read:

Subd. 5.

Mandate.

(a) A public utility, as defined in section 216B.02, subdivision 4,
that operates a nuclear-powered electric generating plant within this state must construct
and operate, purchase, or contract to construct and operate (1) by December 31, 1998,
50 megawatts of electric energy installed capacity generated by farm-grown closed-loop
biomass scheduled to be operational by December 31, 2001; and (2) by December 31,
1998, an additional 75 megawatts of installed capacity so generated scheduled to be
operational by December 31, 2002.

(b) Of the 125 megawatts of biomass electricity installed capacity required under
this subdivision, no more than 55 megawatts of this capacity may be provided by a facility
that uses poultry litter as its primary fuel source and any such facility:

(1) need not use biomass that complies with the definition in subdivision 1;

(2) must enter into a contract with the public utility for such capacity, that has an
average purchase price per megawatt hour over the life of the contract that is equal to or
less than the average purchase price per megawatt hour over the life of the contract in
contracts approved by the Public Utilities Commission before April 1, 2000, to satisfy
the mandate of this section, and file that contract with the Public Utilities Commission
prior to September 1, 2000; and

(3) must schedule such capacity to be operational by December 31, 2002.

(c) Of the total 125 megawatts of biomass electric energy installed capacity required
under this section, no more than 75 megawatts may be provided by a single project.

(d) Of the 75 megawatts of biomass electric energy installed capacity required under
paragraph (a), clause (2), no more than 33 megawatts of this capacity may be provided by
a St. Paul district heating and cooling system cogeneration facility utilizing waste wood
as a primary fuel source. The St. Paul district heating and cooling system cogeneration
facility need not use biomass that complies with the definition in subdivision 1.

(e) The public utility must accept and consider on an equal basis with other biomass
proposals:

(1) a proposal to satisfy the requirements of this section that includes a project that
exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or (2), and
that proposes to sell the excess capacity to the public utility or to other purchasers; and

(2) a proposal for a new facility to satisfy more than ten but not more than 20
megawatts of the electrical generation requirements by a small business-sponsored
independent power producer facility to be located within the northern quarter of the state,
which means the area located north of Constitutional Route No. 8 as described in section
161.114, subdivision 2, and that utilizes biomass residue wood, sawdust, bark, chipped
wood, or brush to generate electricity. A facility described in this clause is not required
to utilize biomass complying with the definition in subdivision 1, but must be under
construction by December 31, 2005.

(f) If a public utility files a contract with the commission for electric energy installed
capacity that uses poultry litter as its primary fuel source, the commission must do a
preliminary review of the contract to determine if it meets the purchase price criteria
provided in paragraph (b), clause (2). The commission shall perform its review and advise
the parties of its determination within 30 days of filing of such a contract by a public
utility. A public utility may submit by September 1, 2000, a revised contract to address the
commission's preliminary determination.

(g) The commission shall finally approve, modify, or disapprove no later than July
1, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet the
mandate set forth in this subdivision.

(h) If a public utility subject to this section exercises an option to increase the
generating capacity of a project in a contract approved by the commission prior to April
25, 2000, to satisfy the mandate in this subdivision, the public utility must notify the
commission by September 1, 2000, that it has exercised the option and include in the
notice the amount of additional megawatts to be generated under the option exercised.
Any review by the commission of the project after exercise of such an option shall be
based on the same criteria used to review the existing contract.

deleted text begin (i) A facility specified in this subdivision qualifies for exemption from property
taxation under section 272.02, subdivision 45.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2014, section 270C.01, subdivision 7, is amended to read:

Subd. 7.

Property tax laws.

"Property tax laws" means all laws and rules related to
the administration of the tax on property referred to in section 272.01, subdivision 1 deleted text begin , and
all laws related to the administration of the tax on wind energy production imposed under
section 272.029, subdivision 1 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:

Subd. 9.

Personal property; exceptions.

Except for the taxable personal property
enumerated below, all personal property and the property described in section 272.03,
subdivision 1, paragraphs (c) and (d), shall be exempt.

The following personal property shall be taxable:

(a) personal property which is part of an electric deleted text begin generating, deleted text end transmission deleted text begin , deleted text end or
distribution system or a pipeline system transporting or distributing water, gas, crude
oil, or petroleum products or mains and pipes used in the distribution of steam or hot or
chilled water for heating or cooling buildings and structures;

(b) railroad docks and wharves which are part of the operating property of a railroad
company as defined in section 270.80;

(c) personal property defined in section 272.03, subdivision 2, clause (3);

(d) leasehold or other personal property interests which are taxed pursuant to section
272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were the fee owner;

(e) manufactured homes and sectional structures, including storage sheds, decks,
and similar removable improvements constructed on the site of a manufactured home,
sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
8, paragraph (f); and

(f) flight property as defined in section 270.071.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:

Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned
by the state of Minnesota or any political subdivision thereof, and property exempt from
taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at
the times provided in subdivision 3, a taxpayer claiming an exemption from taxation
on property described in section 272.02, subdivisions 2 to 33, must file a statement of
exemption with the assessor of the assessment district in which the property is located.

deleted text begin (b) A taxpayer claiming an exemption from taxation on property described in section
272.02, subdivision 10, must file a statement of exemption with the commissioner of
revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end In case of sickness, absence or other disability or for good cause, the assessor
or the commissioner may extend the time for filing the statement of exemption for a
period not to exceed 60 days.

deleted text begin (d) deleted text end new text begin (c) new text end The commissioner of revenue shall prescribe the form and contents of the
statement of exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 9.

new text begin [273.129] ELECTRIC GENERATION MACHINERY; VALUATION.
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
having the meanings given.
new text end

new text begin (b) "Electric generation machinery" means all personal property of an electric
generation system used for the purpose of generating electricity.
new text end

new text begin (c) "Generation capacity" means the generation rate per megawatt hour as follows:
new text end

new text begin (1) $0 for hydroelectric, wind, or solar generation systems;
new text end

new text begin (2) $5,000 for machinery used to generate electricity from biomass, natural gas, or
nuclear fuel generation systems; and
new text end

new text begin (3) $10,000 for machinery used to generate electricity from a coal or oil generation
system or any other fossil fuel.
new text end

new text begin (d) "Generation rate" means the rate per kilowatt hour as follows:
new text end

new text begin (1) $.05 for hydroelectric, wind, or solar generation systems;
new text end

new text begin (2) $.0525 for machinery used to generate electricity from biomass, natural gas, or
nuclear fuel generation systems; and
new text end

new text begin (3) $.055 for machinery used to generate electricity from a coal or oil generation
system or any other fossil fuel.
new text end

new text begin (e) "Solar energy generating system" means a set of devices whose primary purpose
is to produce electricity by means of any combination of collecting, transferring, or
converting solar generated energy.
new text end

new text begin (f) "Spent fuel" means fuel that has been irradiated in a nuclear reactor to the point
where it is no longer useful in sustaining a nuclear reaction.
new text end

new text begin (g) "Spent fuel tax base" means $150,000,000 plus $100,000 per ton for machinery
used to generate electricity from a nuclear fuel generation system.
new text end

new text begin (h) "Wind energy conversion system" means any device, such as a wind charger,
windmill, or wind turbine that converts wind energy to a form of usable energy, and also
includes a substation that is used and owned by one or more wind energy conversion
systems.
new text end

new text begin Subd. 2. new text end

new text begin Electric generation tax base. new text end

new text begin (a) The commissioner shall annually
calculate the electric generation tax base under this section.
new text end

new text begin (b) The electric generation tax base of property described in subdivision 1 is equal
to the sum of: (1) its nameplate capacity multiplied by its generation capacity rate; (2)
the average of its electric energy production according to the Federal Energy Regulatory
Commission for the immediately preceding five years, multiplied by its generation rate;
and (3) its spent fuel tax base.
new text end

new text begin (c) For purposes of a levy based on market value, the electric generation tax base
shall become part of the jurisdiction's market value tax base. For all levies based on net
tax capacity, the electric generation tax base multiplied by two percent shall be added
to the jurisdiction's net tax capacity base.
new text end

new text begin Subd. 3. new text end

new text begin Wind energy conversion systems; size; exemption; reports. new text end

new text begin (a) For
wind energy conversion systems installed and contracted for after January 1, 2002, the
total size of the system shall be determined according to this paragraph. Unless the
systems are interconnected with different distribution systems, the nameplate capacity of
one wind energy conversion system shall be combined with the nameplate capacity of any
other wind energy conversion system that is:
new text end

new text begin (1) located within five miles of the wind energy conversion system;
new text end

new text begin (2) constructed within the same 12-month period as the wind energy conversion
system; and
new text end

new text begin (3) under common ownership.
new text end

new text begin (b) In the case of a dispute of the size of the system, the commissioner of commerce
shall determine the total size of the system and shall draw all reasonable inferences in
favor of combining the systems. In making a determination under paragraph (a), clause
(3), the commissioner of commerce may determine that two wind energy conversion
systems are under common ownership when the underlying ownership structure contains
similar persons or entities even if the ownership shares differ between the two systems.
Wind energy conversion systems are not under common ownership solely because the
same person or entity provided equity financing for the systems.
new text end

new text begin (c) A wind energy conversion system with a capacity of one megawatt or less is
exempt from taxation under this section.
new text end

new text begin (d) An owner of a wind energy conversion system subject to tax under this section
shall file a report with the commissioner of revenue annually on or before February 1
detailing the amount of electricity in kilowatt hours that was produced by the wind energy
conversion system for the previous calendar year. The commissioner shall prescribe the
form of the report. The report must contain the information required by the commissioner
to determine the tax due under this section for the current year. If an owner of a wind
energy conversion system subject to taxation under this section fails to file the report
by the due date, the commissioner of revenue shall determine the tax based upon the
nameplate capacity of the system multiplied by a capacity factor of 60 percent.
new text end

new text begin Subd. 4. new text end

new text begin Solar energy generating systems; size; exemption; reports. new text end

new text begin (a) The total
size of a solar energy generating system shall be determined according to this paragraph.
Unless the systems are interconnected with different distribution systems, the nameplate
capacity of a solar energy generating system shall be combined with the nameplate
capacity of any other solar energy generating system that:
new text end

new text begin (1) is constructed within the same 12-month period as the solar energy generating
system; and
new text end

new text begin (2) exhibits characteristics of being a single development, including but not
limited to ownership structure, an umbrella sales arrangement, shared interconnection,
revenue-sharing arrangements, and common debt or equity financing.
new text end

new text begin (b) In the case of a dispute, the commissioner of commerce shall determine the total
size of the system and shall draw all reasonable inferences in favor of combining the
systems. In making a determination under this paragraph, the commissioner of commerce
may determine that two solar energy generating systems are under common ownership
when the underlying ownership structure contains similar persons or entities even if the
ownership shares differ between the two systems. Solar energy generating systems are
not under common ownership solely because the same person or entity provided equity
financing for the systems.
new text end

new text begin (c) A solar energy generating system with a capacity of one megawatt alternating
current or less is exempt from the tax imposed under this section.
new text end

new text begin (d) An owner of a solar energy generating system subject to tax under this section
shall file a report with the commissioner of revenue annually on or before January 15
detailing the amount of electricity in megawatt hours that was produced by the system
in the previous calendar year. The commissioner shall prescribe the form of the report.
The report must contain the information required by the commissioner to determine the
tax due under this section for the current year. If an owner of a solar energy generating
system subject to taxation under this section fails to file the report by the due date, the
commissioner of revenue shall determine the tax based upon the nameplate capacity of
the system multiplied by a capacity factor of 30 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2015, taxes
payable in 2016, and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:

Subd. 24.

Class 3.

Commercial and industrial property and utility real and personal
property is class 3a.

(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
real property has a classification rate of 1.5 percent of the first tier of market value, and 2.0
percent of the remaining market value. In the case of contiguous parcels of property owned
by the same person or entity, only the value equal to the first-tier value of the contiguous
parcels qualifies for the reduced classification rate, except that contiguous parcels owned
by the same person or entity shall be eligible for the first-tier value classification rate on
each separate business operated by the owner of the property, provided the business is
housed in a separate structure. For the purposes of this subdivision, the first tier means the
first $150,000 of market value. Real property owned in fee by a utility for transmission
line right-of-way shall be classified at the classification rate for the higher tier.

For purposes of this subdivision, parcels are considered to be contiguous even if
they are separated from each other by a road, street, waterway, or other similar intervening
type of property. Connections between parcels that consist of power lines or pipelines do
not cause the parcels to be contiguous. Property owners who have contiguous parcels of
property that constitute separate businesses that may qualify for the first-tier classification
rate shall notify the assessor by July 1, for treatment beginning in the following taxes
payable year.

(2) All personal property that is: (i) part of an electric deleted text begin generation, deleted text end transmission deleted text begin , deleted text end or
distribution system; or (ii) part of a pipeline system transporting or distributing water, gas,
crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
operating property has a classification rate as provided under clause (1) for the first tier
of market value and the remaining market value. In the case of multiple parcels in one
county that are owned by one person or entity, only one first tier amount is eligible for the
reduced rate.

(3) The entire market value of personal property that is: (i) tools deleted text begin , deleted text end new text begin and new text end implements deleted text begin ,
and machinery deleted text end of an electric generation, transmission, or distribution system; (ii) tools,
implements, and machinery of a pipeline system transporting or distributing water, gas,
crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of
steam or hot or chilled water for heating or cooling buildings, has a classification rate as
provided under clause (1) for the remaining market value in excess of the first tier.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in
2016 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2014, section 275.70, subdivision 6, is amended to read:

Subd. 6.

Levy aid base.

"Levy aid base" for a local governmental unit for a levy
year means its total levy spread on net tax capacity, minus any amounts that would
qualify as a special levy under this section, plus the sum of (1) the total amount of aids
and reimbursements that the local governmental unit is certified to receive under sections
477A.011 to 477A.014 in the same year, new text begin and new text end (2) taconite aids under sections 298.28
and 298.282 in the same year, including any aid which was required to be placed in a
special fund for expenditure in the next succeeding year deleted text begin , and (3) payments to the local
governmental unit under section 272.029 in the same year, adjusted for any error in
estimation in the preceding year deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2014, section 275.71, subdivision 5, is amended to read:

Subd. 5.

Property tax levy limit.

(a) For taxes levied in 2008 through 2010, the
property tax levy limit for a local governmental unit is equal to its adjusted levy limit
base determined under subdivision 4 plus any additional levy authorized under section
275.73, which is levied against net tax capacity, reduced by the sum of (i) the total amount
of aids and reimbursements that the local governmental unit is certified to receive under
sections 477A.011 to 477A.014, (ii) taconite aids under sections 298.28 and 298.282
including any aid which was required to be placed in a special fund for expenditure in the
next succeeding year, new text begin and new text end (iii) deleted text begin estimated payments to the local governmental unit under
section 272.029, adjusted for any error in estimation in the preceding year, and (iv) deleted text end aids
under section 477A.16.

(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local
government unit's levy limit is reduced by an unallotment under section 16A.152, the
amount of the aid, payment, or other amount prior to the unallotment is used in the
computations in paragraph (a). In order for a local government unit to levy outside of its
limit to offset the reduction in revenues attributable to an unallotment, it must do so under,
and to the extent authorized by, a special levy authorization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2014, section 469.315, is amended to read:

469.315 TAX INCENTIVES AVAILABLE IN ZONES.

Qualified businesses that operate in a job opportunity building zone, individuals who
invest in a qualified business that operates in a job opportunity building zone, and property
located in a job opportunity building zone qualify for:

(1) exemption from individual income taxes as provided under section 469.316;

(2) exemption from corporate franchise taxes as provided under section 469.317;

(3) exemption from the state sales and use tax and any local sales and use taxes on
qualifying purchases as provided in section 297A.68, subdivision 37;

(4) exemption from the state sales tax on motor vehicles and any local sales tax on
motor vehicles as provided under section 297B.03;

(5) exemption from the property tax as provided in section 272.02, subdivision
64; new text begin and
new text end

deleted text begin (6) exemption from the wind energy production tax under section 272.029,
subdivision 7; and
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end the jobs credit allowed under section 469.318, except that a qualified business
located in a create automotive recovery zone is not eligible for the credit under section
469.318 but is eligible for the credit under section 469.3181.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end

Sec. 14.

new text begin [477A.21] ELECTRIC GENERATION PROPERTY 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 the purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Local unit" means a home rule charter or statutory city, county, school district,
or a town.
new text end

new text begin (c) "Net tax capacity differential" means the positive difference, if any, by which
the local unit's net tax capacity was reduced from assessment year 2015 to assessment
year 2016 as a result of changes made to the valuation and taxation of electric generation
machinery under section 273.129.
new text end

new text begin Subd. 2. new text end

new text begin Aid eligibility; payment. new text end

new text begin (a) If the net tax capacity differential of the
local unit exceeds its 2016 net tax capacity, the local unit is eligible for transition aid as
provided in paragraph (b).
new text end

new text begin (b) For aids payable in 2017 and thereafter, transition aid under this section for
an eligible local unit equals (1) the net tax capacity differential, multiplied by (2) the
jurisdiction's tax rate for taxes payable in 2016, provided that the transition aid to an
eligible local unit shall cease beginning in the year following the year in which the net tax
capacity of the local unit exceeds its 2016 net tax capacity. Once a local unit becomes
ineligible for aid under this section, it may not subsequently become eligible.
new text end

new text begin (c) The commissioner of revenue shall compute the amount of transition aid payable
to each local unit under this section. On or before August 1 of each year, the commissioner
shall certify the amount of transition aid computed for aids payable in the following year
for each recipient local unit. The commissioner shall pay transition aid to local units
annually at the times provided in section 477A.015.
new text end

new text begin (d) 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. 3. new text end

new text begin Appropriation. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2017.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 272.02, subdivisions 10, 24, 29, 33, 44, 45, 52,
54, 55, 56, 68, 69, 70, 71, 84, 89, 92, 93, 96, and 99; 272.0211; 272.029; and 272.0295, new text end new text begin
are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year
2015 and thereafter.
new text end