Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3469 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	25-04130 as introduced04/09/25 REVISOR MS/NS
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 3469NINETY-FOURTH SESSION
27	27	(SENATE AUTHORS: PUTNAM and Weber)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading05/01/2025
30	30	Referred to Taxes 2.1 (b) To be eligible for the valuation exclusion in this subdivision, improvements to railroad
31	31	2.2property must meet the following conditions:
32	32	2.3 (1) the improvements must have been implemented to accommodate a public transit
33	33	2.4program, light rail transit, commuter rail, or intercity passenger rail;
34	34	2.5 (2) the improvements include but are not limited to: (i) subgrade work; (ii) grading; (iii)
35	35	2.6adding subgrade material; and (iv) utilizing ballast, ties, rail, materials to attach the rails to
36	36	2.7the ties, and rail switches to join rail sidings to a main rail line; and
37	37	2.8 (3) the improvements were made after January 1, 2016.
38	38	2.9 (c) The commissioner of revenue must estimate the market value of the railroad property
39	39	2.10in the assessment year immediately following the year that the taxpayer notified the
40	40	2.11commissioner that an improvement was made. The commissioner must apply the exclusion
41	41	2.12provided under this subdivision proportionately across all railroad operating property within
42	42	2.13the state. The commissioner must require an application. Applications must be received by
43	43	2.14December 31 each year in order to be effective for taxes payable in the following year.
44	44	2.15 EFFECTIVE DATE.This section is effective retroactively for assessment year 2024.
45	45	2.16 Sec. 3. Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision to
46	46	2.17read:
47	47	2.18 Subd. 25.Valuation exclusion for safety improvements to certain railroad
48	48	2.19property.(a) Property classified under section 273.13, subdivision 24, and improved as
49	49	2.20provided in this subdivision, qualifies for a valuation exclusion for assessment purposes.
50	50	2.21 (b) To be eligible for the valuation exclusion in this subdivision, improvements to railroad
51	51	2.22property must meet the following conditions:
52	52	2.23 (1) the improvements to the rail line must have been implemented in connection to or
53	53	2.24funded by a state or federal safety program or funded by a state or federal safety grant
54	54	2.25program;
55	55	2.26 (2) the improvements include but are not limited to: (i) rail replacement to a heavier
56	56	2.27weight rail; (ii) eliminating and replacing existing rail joints; (iii) utilizing ballast, ties, and
57	57	2.28materials to attach the rails to the ties; (iv) surfacing joint-eliminated rails or continuous
58	58	2.29welded rail; and (v) bridge repairs or strengthening weight rating of bridges; and
59	59	2.30 (3) the improvements were made after January 1, 2016.
60	60	2.31 (c) The commissioner of revenue must estimate the market value of the railroad property
61	61	2.32in the assessment year immediately following the year that the taxpayer notified the
62	62	2Sec. 3.
63	63	25-04130 as introduced04/09/25 REVISOR MS/NS 3.1commissioner that an improvement was made. The commissioner must apply the exclusion
64	64	3.2provided under this subdivision proportionately across all railroad operating property within
65	65	3.3the state. The commissioner must require an application. Applications must be received by
66	66	3.4December 31 each year in order to be effective for taxes payable in the following year.
67	67	3.5 EFFECTIVE DATE.This section is effective retroactively for assessment year 2024.
68	68	3.6 Sec. 4. Minnesota Statutes 2024, section 273.11, is amended by adding a subdivision to
69	69	3.7read:
70	70	3.8 Subd. 26.Valuation exclusion for environmental safety improvements to certain
71	71	3.9railroad property.(a) Property classified under section 271.13, subdivision 24, and
72	72	3.10improved as provided in this subdivision, qualifies for a valuation exclusion for assessment
73	73	3.11purposes.
74	74	3.12 (b) To be eligible for the valuation exclusion in this subdivision, improvements to railroad
75	75	3.13property must meet the following conditions:
76	76	3.14 (1) the improvements to the railroad property must have been for locomotive emission
77	77	3.15reductions implemented in connection to or funded by a state or federal safety grant program;
78	78	3.16 (2) the improvements were either: (i) modifying existing locomotives to reduce emissions;
79	79	3.17or (ii) replacing existing locomotives with new emission-reducing locomotives; and
80	80	3.18 (3) the improvements were made after January 1, 2016.
81	81	3.19 (c) The commissioner of revenue must estimate the market value of the railroad property
82	82	3.20in the assessment year immediately following the year that the taxpayer notified the
83	83	3.21commissioner that an improvement was made. The commissioner must apply the exclusion
84	84	3.22provided under this subdivision proportionately across all railroad operating property within
85	85	3.23the state. The commissioner must require an application. Applications must be received by
86	86	3.24December 31 each year in order to be effective for taxes payable in the following year.
87	87	3.25 EFFECTIVE DATE.This section is effective retroactively for assessment year 2024.
88	88	3Sec. 4.
89	89	25-04130 as introduced04/09/25 REVISOR MS/NS