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SF 724

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; increasing the property tax class rates on certain utility
property; amending Minnesota Statutes 2006, section 273.13, subdivision 24.

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

Section 1.

Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:


Subd. 24.

Class 3.

(a) 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 class 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 class rate, except that contiguous parcels owned by the same
person or entity shall be eligible for the first-tier value class 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 class 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 class rate shall
notify the assessor by July 1, for treatment beginning in the following taxes payable year.

(2) deleted text beginAlldeleted text end Personal property that isdeleted text begin: (i)deleted text end part of an electric generationdeleted text begin, transmission, or
distribution
deleted text end systemdeleted text begin; or (ii)deleted text endnew text begin, including tools, implements, and machinery, has a class rate
of 3.0 percent.
new text end

new text begin (3) Personal property that is either: (i) new text endpart of a pipeline system transporting
or distributing water, gas, crude oil, or petroleum productsdeleted text begin; and (iii) not described in
clause (3), and all
deleted text endnew text begin, including tools, implements, and machinery, or (ii) part of an electric
transmission or distribution system, including tools, implements, and machinery, has a
class rate of 2.25 percent.
new text end

new text begin (4) Personal property that is new text endrailroad operating property has a class 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.

deleted text begin (3) The entire market value of personal property that is: (i) tools, implements, and
machinery 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)
deleted text enddeleted text begin thedeleted text endnew text begin (5) Personal property consisting of new text end mains
and pipes used in the distribution of steam or hot or chilled water for heating or cooling
buildings, has a class rate as provided under clause (1) for the remaining market value
in excess of the first tier.

(b) Employment property defined in section 469.166, during the period provided
in section 469.170, shall constitute class 3b. The class rates for class 3b property are
determined under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2007, payable
in 2008, and thereafter.
new text end