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SF 3735

as introduced - 90th Legislature (2017 - 2018) Posted on 03/23/2018 09:15am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; exempting certain property from the state general
levy; amending Minnesota Statutes 2017 Supplement, section 275.025, subdivisions
1, 2.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 275.025, subdivision 1, is amended
to read:


Subdivision 1.

Levy amount.

new text begin (a) new text end The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is $784,590,000
for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational
property is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section
is not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.

new text begin (b) new text end The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin (c) Each year, the commissioner must reduce the state commercial-industrial levy under
paragraph (a) by the amount of state general tax that would be paid by property defined in
subdivision 2, paragraph (c), if it were not exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 275.025, subdivision 2, is amended
to read:


Subd. 2.

Commercial-industrial tax capacity.

new text begin (a) new text end For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
as class 3 or class 5(1) under section 273.13, excluding:

(1) the tax capacity attributable to the first $100,000 of market value of each parcel of
commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)
and (2);

(2) electric generation attached machinery under class 3; deleted text begin and
deleted text end

(3) property described in section 473.625new text begin ; and
new text end

new text begin (4) property described in paragraph (c)new text end .

new text begin (b) new text end County commercial-industrial tax capacity amounts are not adjusted for the captured
net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
the net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within the
first $100,000 of market value.

new text begin (c) Personal property that is part of an intrastate natural gas transportation or distribution
pipeline system is exempt from the tax imposed under this section if:
new text end

new text begin (1) construction of the pipeline system began after January 1, 2018; and
new text end

new text begin (2) the property is located in an area:
new text end

new text begin (i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision
3; and
new text end

new text begin (ii) in which households or businesses lacked access to natural gas distribution systems
as of January 1, 2018.
new text end

new text begin The exemption under this paragraph applies for a period not to exceed 12 years, provided
that once a property no longer qualifies, it may not subsequently qualify for the exemption
under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end