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SF 1495

as introduced - 88th Legislature (2013 - 2014) Posted on 03/22/2013 09:24am

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


Version List Authors and Status

Current Version - as introduced

1.1A bill for an act
1.2relating to taxation; property; increasing property tax class rates on utility
1.3property; amending Minnesota Statutes 2012, section 273.13, subdivision 24.

1.5    Section 1. Minnesota Statutes 2012, section 273.13, subdivision 24, is amended to read:
1.6    Subd. 24. Class 3. Commercial and industrial property and utility real and personal
1.7property is class 3a.
1.8(1) Except as otherwise provided, each parcel of commercial, and industrial
1.9 property, or utility real property has a class rate of 1.5 percent of the first tier of market
1.10value, and 2.0 percent of the remaining market value.
1.11(2) Except as provided, each parcel of utility real and personal property has a class
1.12rate of 2.4 percent of the first tier of market value, and 3.4 percent of the remaining
1.13market value.
1.14(3) In the case of contiguous parcels of property owned by the same person or
1.15entity, only the value equal to the first-tier value of the contiguous parcels qualifies for
1.16the reduced class rate, except that contiguous parcels owned by the same person or entity
1.17shall be eligible for the first-tier value class rate on each separate business operated by
1.18the owner of the property, provided the business is housed in a separate structure. For the
1.19purposes of this subdivision, the first tier means the first $150,000 of market value. Real
1.20property owned in fee by a utility for transmission line right-of-way shall be classified at
1.21the class rate for the higher tier.
1.22For purposes of this subdivision, parcels are considered to be contiguous even if
1.23they are separated from each other by a road, street, waterway, or other similar intervening
1.24type of property. Connections between parcels that consist of power lines or pipelines do
2.1not cause the parcels to be contiguous. Property owners who have contiguous parcels of
2.2property that constitute separate businesses that may qualify for the first-tier class rate shall
2.3notify the assessor by July 1, for treatment beginning in the following taxes payable year.
2.4(2) (4) All personal property that is: (i) part of an electric generation, transmission,
2.5or distribution system; or (ii) part of a pipeline system transporting or distributing water,
2.6gas, crude oil, or petroleum products; and (iii) not described in clause (3) (5), and all
2.7railroad operating property has a class rate as provided under clause (1) (2) for the first tier
2.8of market value and the remaining market value. All railroad operating property has a
2.9class rate as provided in clause (1). In the case of multiple parcels in one county that are
2.10owned by one person or entity, only one first tier amount is eligible for the reduced rate.
2.11(3) (5) The entire market value of personal property that is: (i) tools, implements,
2.12and machinery of an electric generation, transmission, or distribution system; (ii) tools,
2.13implements, and machinery of a pipeline system transporting or distributing water, gas,
2.14crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of
2.15steam or hot or chilled water for heating or cooling buildings, has a class rate as provided
2.16under clause (1) (2) for the remaining market value in excess of the first tier.
2.17EFFECTIVE DATE.This section is effective for taxes payable in 2014 and

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