2005 Minnesota Statutes

     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. 

    HIST: 1995 c 264 art 3 s 5; 1999 c 243 art 5 s 4