Minnesota 2025-2026 Regular Session

Minnesota House Bill HF506 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 taxes; modifying exemption, valuation, and
3	3	1.3 distribution provisions for certain electric cooperatives; amending Minnesota
4	4	1.4 Statutes 2024, sections 272.02, subdivision 19; 273.38; 273.41.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:
7	7	1.7 Subd. 19.Property used to distribute electricity to farmers.Electric power distribution
8	8	1.8lines and their attachments and appurtenances systems, not including substations, or
9	9	1.9transmission or generation equipment, that are used primarily for supplying electricity to
10	10	1.10farmers at retail, are exempt.
11	11	1.11 EFFECTIVE DATE.This section is effective for assessment year 2026 and thereafter.
12	12	1.12 Sec. 2. Minnesota Statutes 2024, section 273.38, is amended to read:
13	13	1.13 273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
14	14	1.14 The distribution lines and the attachments and appurtenances thereto systems, not
15	15	1.15including substations, or transmission or generation equipment, of cooperative associations
16	16	1.16organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
17	17	1.17and supplemental thereto, and engaged in the electrical heat, light and power business, upon
18	18	1.18a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
19	19	1.19273.40 and 273.41.
20	20	1.20 EFFECTIVE DATE.This section is effective for assessment year 2026 and thereafter.
21	21	1Sec. 2.
22	22	REVISOR MS/MI 25-0106912/12/24
23	23	State of Minnesota
24	24	This Document can be made available
25	25	in alternative formats upon request
26	26	HOUSE OF REPRESENTATIVES
27	27	H. F. No. 506
28	28	NINETY-FOURTH SESSION
29	29	Authored by Davids02/13/2025
30	30	The bill was read for the first time and referred to the Committee on Taxes 2.1 Sec. 3. Minnesota Statutes 2024, section 273.41, is amended to read:
31	31	2.2 273.41 AMOUNT OF TAX; DISTRIBUTION.
32	32	2.3 There is hereby imposed upon each such cooperative association on December 31 of
33	33	2.4each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
34	34	2.5tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
35	35	2.6distribution lines and the attachments and appurtenances thereto of such associations that
36	36	2.7part of the association's distribution system, not including substations, or transmission or
37	37	2.8generation equipment, located in rural areas. The tax shall be payable on or before March
38	38	2.91 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
39	39	2.10thereof, is not paid within the time herein specified for the payment thereof, there shall be
40	40	2.11added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
41	41	2.12Such penalty shall be collected as part of said tax, and the amount of said tax not timely
42	42	2.13paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
43	43	2.14from the time such tax should have been paid until paid. The commissioner shall deposit
44	44	2.15the amount so received in the general fund of the state treasury.
45	45	2.16 EFFECTIVE DATE.This section is effective for assessment year 2026 and thereafter.
46	46	2Sec. 3.
47	47	REVISOR MS/MI 25-0106912/12/24