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HF 174

as introduced - 94th Legislature (2025 - 2026) Posted on 02/10/2025 03:08pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/10/2025

Current Version - as introduced

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A bill for an act
relating to taxation; property; modifying the taxation of certain cooperative
association property; amending Minnesota Statutes 2024, sections 272.02,
subdivision 19; 273.38; 273.41.

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

Section 1.

Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:


Subd. 19.

Property used to distribute electricity to farmers.

Electric power distribution
deleted text begin lines and their attachments and appurtenancesdeleted text end new text begin systems, not including substations, or
transmission or generation equipment
new text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2024, section 273.38, is amended to read:


273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.

The distribution deleted text begin lines and the attachments and appurtenances theretodeleted text end new text begin systems, not
including substations, or transmission or generation equipment
new text end of cooperative associations
organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2024, section 273.41, is amended to read:


273.41 AMOUNT OF TAX; DISTRIBUTION.

There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
deleted text begin distribution lines and the attachments and appurtenances thereto of such associationsdeleted text end new text begin that
part of the association's distribution system, not including substations, or transmission or
generation equipment,
new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2025 and thereafter.
new text end