HF174 (Legislative Session 94 (2025-2026))
Taxation of certain cooperative association property modified.
AI Generated Summary
Purpose
To modify Minnesota property tax rules so that certain electric infrastructure used to serve farmers may be exempt from tax. The bill clarifies which parts of the electric distribution system qualify and which parts do not.
Main Provisions
- Amends Minnesota Statutes 2024 section 272.02 subdivision 19 to create or clarify an exemption for property used to distribute electricity to farmers.
- The exemption specifically covers electric power distribution lines and their attachments and appurtenances.
- The exemption applies when these lines and components are used primarily for supplying electricity to farmers at retail.
- Substations, transmission lines, and generation equipment are explicitly not included in the exemption.
- The bill also changes related provisions in sections 273.38 and 273.41.1.5 to align with this exemption structure.
Significant Changes to Existing Law
- Narrows the exemption to only the distribution network (lines and their attachments/appurtenances) used to serve farming customers at retail, excluding substations, transmission lines, and generation equipment.
- Clarifies that the exemption applies only when the property is used primarily for supplying electricity to farmers, which tightens prior ambiguity about what infrastructure qualifies.
How It Affects People and Property
- Property owners with electric distribution lines that serve farms may receive a property tax exemption for those lines and their attached components, provided they meet the “used primarily for supplying electricity to farmers at retail” criterion.
- Other parts of the electric system, such as substations or larger transmission/generation facilities, would not qualify for the exemption.
Relevant Terms
- property used to distribute electricity to farmers
- electric power distribution lines
- attachments
- appurtenances
- substations
- transmission equipment
- generation equipment
- used primarily for supplying electricity to farmers at retail
- exempt
- Minnesota Statutes 2024
- section 272.02 subdivision 19
- sections 273.38 and 273.41.1.5
Relevant Terms - property used to distribute electricity to farmers - electric power distribution lines - attachments - appurtenances - substations - transmission equipment - generation equipment - used primarily for supplying electricity to farmers at retail - exempt - Minnesota Statutes 2024 - section 272.02 subdivision 19 - sections 273.38 and 273.41.1.5
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 10, 2025 | House | Action | Introduction and first reading, referred to | Taxes | |
| March 12, 2025 | House | Action | Author added | ||
| April 01, 2025 | House | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Clarifies that electric power distribution lines and their attachments and appurtenances (excluding substations, or transmission or generation equipment) used primarily for supplying electricity to farmers at retail are exempt."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 272.02, subdivision 19 to address the tax exemption for property used to distribute electricity to farmers, clarifying the scope of the exemption for electric power distribution lines and related components.",
"modified": []
},
"citation": "272.02",
"subdivision": "19"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2024 section 273.38 to be amended.",
"modified": []
},
"citation": "273.38",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 2024 section 273.41, with subdivisions 1 and 5 affected.",
"modified": []
},
"citation": "273.41",
"subdivision": "1,5"
}
]Progress through the legislative process
In Committee