SF 1685

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a reduction in the
assessed market value of energy-efficient new
commercial property; amending Minnesota Statutes 2004,
section 273.11, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 273.11, is
amended by adding a subdivision to read:

new text begin Subd. 21. new text end

new text begin Valuation of energy-efficient commercial
properties. new text end

new text begin (a) The market value of certain energy-efficient
property classified under section 273.13, subdivision 24, that
is used for commercial purposes, is reduced as provided in this
subdivision.
new text end

new text begin (b) To be eligible for a valuation reduction under this
subdivision, property must be certified by a qualified inspector
as having been constructed in a manner that will achieve a level
of energy consumption that is at least 20 percent lower than the
standard set in the state energy code rules. The percentage
reduction in the market value of a qualifying property is
determined as follows:
new text end

new text begin percentage of energy consumption new text end new text begin percentage of
below energy code requirement new text end new text begin market value reduction
new text end

new text begin 20-30 new text end new text begin 5
new text end

new text begin 31-50 new text end new text begin 10
new text end

new text begin over 50 new text end new text begin 15
new text end

new text begin The reductions will remain in effect for the first ten
assessment years after the property has been certified as
qualifying under this subdivision.
new text end

new text begin (c) The Department of Commerce must establish a process for
determining eligibility for the valuation reduction under this
subdivision, including certification of persons who are
qualified to perform this function.
new text end

new text begin (d) To claim a valuation reduction under this subdivision,
the owner of the commercial property must obtain a certification
of the level of qualification determined under paragraph (b),
which must be prepared by a person certified as provided in
paragraph (c). The property owner must furnish this
certification to the assessor by May 1 of the assessment year in
order to qualify for the valuation reduction for taxes payable
in the following year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments
in 2006, taxes payable in 2007, and thereafter.
new text end