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Minnesota Legislature

Office of the Revisor of Statutes

273.42 RATE OF TAX; ENTRY AND CERTIFICATION; CREDIT ON PAYMENT;
PROPERTY TAX CREDIT.
    Subdivision 1. Tax rate; payment. The property set forth in section 273.37, subdivision
2
, consisting of transmission lines of less than 69 kv and transmission lines of 69 kv and above
located in an unorganized township, and distribution lines not taxed as provided in sections
273.38, 273.40 and 273.41 shall be taxed at the average local tax rate of taxes levied for all
purposes throughout the county after disparity reduction aid is applied, and shall be entered on
the tax lists by the county auditor against the owner thereof and certified to the county treasurer
at the same time and in the same manner that other taxes are certified, and, when paid, shall be
credited as follows: 50 percent to the general revenue fund of the county and 50 percent to the
general school fund of the county, except that if there are high voltage transmission lines as
defined in section 216E.01, the construction of which was commenced after July 1, 1974, and
which are located in unorganized townships within the county, then the distribution of taxes
within this subdivision shall be credited as follows: 50 percent to the general revenue fund of the
county, 40 percent to the general school fund of the county and ten percent to a utility property
tax credit fund, which is hereby established.
    Subd. 2. Property tax credit. Owners of land that is an agricultural or nonagricultural
homestead, nonhomestead agricultural land, rental residential property, and both commercial and
noncommercial seasonal residential recreational property, as those terms are defined in section
273.13 listed on records of the county auditor or county treasurer over which runs a high voltage
transmission line with a capacity of 200 kilovolts or more, except a high voltage transmission line
the construction of which was commenced prior to July 1, 1974, shall receive a property tax credit
in an amount determined by multiplying a fraction, the numerator of which is the length of high
voltage transmission line which runs over that parcel and the denominator of which is the total
length of that particular line running over all property within the city or township by ten percent
of the transmission line tax revenue derived from the tax on that portion of the line within the city
or township pursuant to section 273.36. In the case of property owners in unorganized townships,
the property tax credit shall be determined by multiplying a fraction, the numerator of which is
the length of the qualifying high voltage transmission line which runs over the parcel and the
denominator of which is the total length of the qualifying high voltage transmission line running
over all property within all the unorganized townships within the county, by the total utility
property tax credit fund amount available within the county for that year pursuant to subdivision
1. Where a right-of-way width is shared by more than one property owner, the numerator shall
be adjusted by multiplying the length of line on the parcel by the proportion of the total width
on the parcel owned by that property owner. The amount of credit for which the property
qualifies shall not exceed 20 percent of the total gross tax on the parcel prior to deduction of the
state paid agricultural credit and the state paid homestead credit, provided that, if the property
containing the right-of-way is included in a parcel which exceeds 40 acres, the total gross tax on
the parcel shall be multiplied by a fraction, the numerator of which is the sum of the number of
acres in each quarter-quarter section or portion thereof which contains a right-of-way and the
denominator of which is the total number of acres in the parcel set forth on the tax statement, and
the maximum credit shall be 20 percent of the product of that computation, prior to deduction of
those credits. The auditor of the county in which the affected parcel is located shall calculate the
amount of the credit due for each parcel and transmit that information to the county treasurer.
The county auditor, in computing the credit received pursuant to section 273.135, shall reduce
the gross tax by the amount of the credit received pursuant to this section, unless the amount of
the credit would be less than $10.
If, after the county auditor has computed the credit to those qualifying property owners in
unorganized townships, there is money remaining in the utility property tax credit fund, then that
excess amount in the fund shall be returned to the general school fund of the county.
    Subd. 3. State tax on transmission and distribution lines. Notwithstanding section
273.425, the entire tax capacity of property taxed at the average local tax rate under subdivision 1
is subject to the state tax rate provided in section 275.025. Notwithstanding subdivisions 1 and 2,
the entire proceeds of the state tax levy for each such property must be distributed to the state
under the procedures provided in chapter 276. No portion of the proceeds from the state levy on
such property is distributed within the county under subdivision 1 or 2.
History: (2012-3) 1925 c 306 s 3; 1949 c 554 s 3; 1978 c 658 s 4; 1979 c 303 art 2 s 20;
1980 c 607 art 10 s 3; 1Sp1981 c 1 art 2 s 15; 1982 c 523 art 16 s 1; 1Sp1985 c 14 art 4 s 70;
1Sp1986 c 1 art 4 s 24; 1987 c 268 art 6 s 35; 1Sp1989 c 1 art 2 s 11; 1990 c 604 art 3 s 22;
1Sp2001 c 5 art 3 s 44; 2003 c 127 art 5 s 21