Minnesota 2025-2026 Regular Session

Minnesota House Bill HF3277 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; providing market value exclusions for certain railroad
3	3	1.3 property; modifying calculation of net present value of anticipated future income
4	4	1.4 for state-assessed property; amending Minnesota Statutes 2024, sections 270.84,
5	5	1.5 by adding a subdivision; 273.11, by adding subdivisions.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 270.84, is amended by adding a subdivision
8	8	1.8to read:
9	9	1.9 Subd. 1a.Yield capitalization rate; adjustment.If the commissioner calculates a yield
10	10	1.10capitalization rate to determine the unit value of railroad property for a given year, the
11	11	1.11commissioner shall compare the resulting rate with the respective yield capitalization rates
12	12	1.12calculated by the respective governing agencies in the states of Wisconsin, Iowa, South
13	13	1.13Dakota, and North Dakota. The commissioner shall adjust the yield capitalization rate to
14	14	1.14be no less than 0.05 percent of the lowest yield capitalization rate set in Wisconsin, Iowa,
15	15	1.15South Dakota, and North Dakota.
16	16	1.16 EFFECTIVE DATE.This section is effective for taxes payable in 2025 and thereafter.
17	17	1.17 Sec. 2. Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision to
18	18	1.18read:
19	19	1.19 Subd. 24.Valuation exclusion for improvements to certain railroad property.(a)
20	20	1.20Property classified under section 273.13, subdivision 24, and improved as provided in this
21	21	1.21subdivision, qualifies for a valuation exclusion for assessment purposes.
22	22	1Sec. 2.
23	23	REVISOR MS/NS 25-0413004/09/25
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 3277
29	29	NINETY-FOURTH SESSION
30	30	Authored by Torkelson and Davids04/30/2025
31	31	The bill was read for the first time and referred to the Committee on Taxes 2.1 (b) To be eligible for the valuation exclusion in this subdivision, improvements to railroad
32	32	2.2property must meet the following conditions:
33	33	2.3 (1) the improvements must have been implemented to accommodate a public transit
34	34	2.4program, light rail transit, commuter rail, or intercity passenger rail;
35	35	2.5 (2) the improvements include but are not limited to: (i) subgrade work; (ii) grading; (iii)
36	36	2.6adding subgrade material; and (iv) utilizing ballast, ties, rail, materials to attach the rails to
37	37	2.7the ties, and rail switches to join rail sidings to a main rail line; and
38	38	2.8 (3) the improvements were made after January 1, 2016.
39	39	2.9 (c) The commissioner of revenue must estimate the market value of the railroad property
40	40	2.10in the assessment year immediately following the year that the taxpayer notified the
41	41	2.11commissioner that an improvement was made. The commissioner must apply the exclusion
42	42	2.12provided under this subdivision proportionately across all railroad operating property within
43	43	2.13the state. The commissioner must require an application. Applications must be received by
44	44	2.14December 31 each year in order to be effective for taxes payable in the following year.
45	45	2.15 EFFECTIVE DATE.This section is effective retroactively for assessment year 2024.
46	46	2.16 Sec. 3. Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision to
47	47	2.17read:
48	48	2.18 Subd. 25.Valuation exclusion for safety improvements to certain railroad
49	49	2.19property.(a) Property classified under section 273.13, subdivision 24, and improved as
50	50	2.20provided in this subdivision, qualifies for a valuation exclusion for assessment purposes.
51	51	2.21 (b) To be eligible for the valuation exclusion in this subdivision, improvements to railroad
52	52	2.22property must meet the following conditions:
53	53	2.23 (1) the improvements to the rail line must have been implemented in connection to or
54	54	2.24funded by a state or federal safety program or funded by a state or federal safety grant
55	55	2.25program;
56	56	2.26 (2) the improvements include but are not limited to: (i) rail replacement to a heavier
57	57	2.27weight rail; (ii) eliminating and replacing existing rail joints; (iii) utilizing ballast, ties, and
58	58	2.28materials to attach the rails to the ties; (iv) surfacing joint-eliminated rails or continuous
59	59	2.29welded rail; and (v) bridge repairs or strengthening weight rating of bridges; and
60	60	2.30 (3) the improvements were made after January 1, 2016.
61	61	2.31 (c) The commissioner of revenue must estimate the market value of the railroad property
62	62	2.32in the assessment year immediately following the year that the taxpayer notified the
63	63	2Sec. 3.
64	64	REVISOR MS/NS 25-0413004/09/25 3.1commissioner that an improvement was made. The commissioner must apply the exclusion
65	65	3.2provided under this subdivision proportionately across all railroad operating property within
66	66	3.3the state. The commissioner must require an application. Applications must be received by
67	67	3.4December 31 each year in order to be effective for taxes payable in the following year.
68	68	3.5 EFFECTIVE DATE.This section is effective retroactively for assessment year 2024.
69	69	3.6 Sec. 4. Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision to
70	70	3.7read:
71	71	3.8 Subd. 26.Valuation exclusion for environmental safety improvements to certain
72	72	3.9railroad property.(a) Property classified under section 271.13, subdivision 24, and
73	73	3.10improved as provided in this subdivision, qualifies for a valuation exclusion for assessment
74	74	3.11purposes.
75	75	3.12 (b) To be eligible for the valuation exclusion in this subdivision, improvements to railroad
76	76	3.13property must meet the following conditions:
77	77	3.14 (1) the improvements to the railroad property must have been for locomotive emission
78	78	3.15reductions implemented in connection to or funded by a state or federal safety grant program;
79	79	3.16 (2) the improvements were either: (i) modifying existing locomotives to reduce emissions;
80	80	3.17or (ii) replacing existing locomotives with new emission-reducing locomotives; and
81	81	3.18 (3) the improvements were made after January 1, 2016.
82	82	3.19 (c) The commissioner of revenue must estimate the market value of the railroad property
83	83	3.20in the assessment year immediately following the year that the taxpayer notified the
84	84	3.21commissioner that an improvement was made. The commissioner must apply the exclusion
85	85	3.22provided under this subdivision proportionately across all railroad operating property within
86	86	3.23the state. The commissioner must require an application. Applications must be received by
87	87	3.24December 31 each year in order to be effective for taxes payable in the following year.
88	88	3.25 EFFECTIVE DATE.This section is effective retroactively for assessment year 2024.
89	89	3Sec. 4.
90	90	REVISOR MS/NS 25-0413004/09/25