272.027 Personal property used to generate electricity for production and resale.
Subdivision 1. Electricity generated to produce goods and services. Personal property used to generate electric power is exempt from property taxation if the electric power is used to manufacture or produce goods, products, or services, other than electric power, by the owner of the electric generation plant. Except as provided in subdivisions 2 and 3, the exemption does not apply to property used to produce electric power for sale to others and does not apply to real property. In determining the value subject to tax, a proportionate share of the value of the generating facilities, equal to the proportion that the power sold to others bears to the total generation of the plant, is subject to the general property tax in the same manner as other property. Power generated in such a plant and exchanged for an equivalent amount of power that is used for the manufacture or production of goods, products, or services other than electric power by the owner of the generating plant is considered to be used by the owner of the plant.
Subd. 2. Exemption for customer owned property transferred to a utility. (a) Tools, implements, and machinery of an electric generating facility are exempt if all the following requirements are met:
(1) the electric generating facilities were operational and met the requirements for exemption of personal property under subdivision 1 on January 2, 1999; and
(2) the generating facility is sold to a Minnesota electric utility.
(b) Any tools, implements, and machinery installed to increase generation capacity are also exempt under this section provided that the existing tools, implements, and machinery are exempt under paragraph (a).
Subd. 3. Exemption for electric power plant personal property; taconite and steel mill. Tools, implements, and machinery of an electric generating facility are exempt if all the following requirements are met:
(1) the electric generating facility, when completed, will have a capacity of at least 450 megawatts;
(2) the electric generating facility is adjacent to a taconite mine direct-reduction steel mill; and
(3) the electric generating facility supplied over 60 percent of its electricity generated in the prior year to the adjacent direct-reduction plant and steel mill.