1.1 	A bill for an act
1.2 	relating to taxation; eliminating property tax exemption for real and personal 
1.3 	property used for pollution control as part of an electric generation system; 
1.4 	authorizing a rate rider to compensate for tax increase;amending Minnesota 
1.5 	Statutes 2008, section 272.02, subdivision 10; proposing coding for new law 
1.6 	in Minnesota Statutes, chapter 216B.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [216B.1647] RECOVERY OF INCREASE PROPERTY TAXES.
1.9 	Upon petition by a public utility that owns property that had been exempt from 
1.10 	taxation under Minnesota Statutes 2008, section 272.02, subdivision 10, the commission 
1.11 	shall approve a rate schedule providing for an adjustment of charges to recover the 
1.12 	additional tax payable by the public utility as a result of the elimination of the property tax 
1.13 	exemption for pollution control property as provided in section 2.

1.14 	Sec. 2. Minnesota Statutes 2008, section 272.02, subdivision 10, is amended to read:
1.15 		Subd. 10.Personal property used for pollution control. Personal property used 
1.16 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
1.17 	extent that it is so used, ~~and~~ provided that this exemption does not apply to personal 
1.18 	property that is part of an electric generation system. Real property is exempt if it is used 
1.19 	primarily for abatement and control of air, water, or land pollution as part of an agricultural 
1.20 	operation, as a part of a centralized treatment and recovery facility operating under a 
1.21 	permit issued by the Minnesota Pollution Control Agency pursuant to chapters 115 and 
1.22 	116 and Minnesota Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, 
1.23 	or as a wastewater treatment facility and for the treatment, recovery, and stabilization of 
1.24 	metals, oils, chemicals, water, sludges, or inorganic materials from hazardous industrial 
2.1 	wastes~~, or as part of an electric generation system~~. For purposes of this subdivision, 
2.2 	personal property includes ponderous machinery and equipment used in a business or 
2.3 	production activity that at common law is considered real property.
2.4 	Any taxpayer requesting exemption of all or a portion of any real property or any 
2.5 	equipment or device, or part thereof, operated primarily for the control or abatement of 
2.6 	air, water, or land pollution shall file an application with the commissioner of revenue. 
2.7 	The Minnesota Pollution Control Agency shall upon request of the commissioner furnish 
2.8 	information and advice to the commissioner.
2.9 	The information and advice furnished by the Minnesota Pollution Control Agency 
2.10 	must include statements as to whether the equipment, device, or real property meets 
2.11 	a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control 
2.12 	Agency, and whether the equipment, device, or real property is installed or operated 
2.13 	in accordance with it. On determining that property qualifies for exemption, the 
2.14 	commissioner shall issue an order exempting the property from taxation. The equipment, 
2.15 	device, or real property shall continue to be exempt from taxation as long as the order 
2.16 	issued by the commissioner remains in effect.

2.17 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable in 
2.18 	2012 and thereafter.