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HF506 (Legislative Session 94 (2025-2026))

Electric cooperatives exemption, valuation, and distribution provisions modified.

Related bill: SF132

AI Generated Summary

Purpose

  • To modify Minnesota property tax rules for electric cooperatives by clarifying which electric distribution infrastructure is exempt from property taxes when used to supply electricity to farmers.

Main provisions

  • The bill would amend Minnesota Statutes 2024, section 272.02, subdivision 19, to specify that:
    • Property used to distribute electricity to farmers is eligible for an exemption.
    • Specifically, electric power distribution lines and their attachments and appurtenances that are used primarily to supply electricity to farmers at retail are exempt from property tax.
    • Substations, as well as transmission or generation equipment, are not included in this exemption.

Significant changes to existing law

  • Provides a clear exemption for distribution lines and related equipment used to serve farmers at retail, reinforcing or creating a tax exemption for those assets.
  • Excludes substations and higher-voltage transmission or generation equipment from the exemption, limiting the scope to distribution infrastructure directly used to supply farmers.

Practical implications (summary)

  • Electric cooperatives that operate distribution lines serving farmers at retail may see reduced property tax obligations on those specific distribution assets.
  • The overall tax base related to electric infrastructure could shift, as only certain parts of the distribution system are covered by the exemption.

Relevant Terms - property tax exemption - electric power distribution lines - attachments - appurtenances - farmers - retail electricity - substations - transmission equipment - generation equipment - Minnesota Statutes 2024 - section 272.02 subdivision 19 - electric cooperatives - distribution infrastructure - tax exemption for distribution lines

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 13, 2025HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends Minnesota Statutes 2024 section 272.02, subdivision 19 to specify the exemption for property used to distribute electricity to farmers, including electric power distribution lines and their attachments and appurtenances, not including substations or transmission or generation equipment, that are used primarily for supplying electricity to farmers at retail.",
      "modified": [
        "Clarifies and defines the scope of the exemption for electric power distribution lines and related components, excluding substations and transmission or generation equipment."
      ]
    },
    "citation": "272.02",
    "subdivision": "19"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Minnesota Statutes 2024 section 273.38 is listed as an amended provision in the bill, but the excerpt provided only shows amendment to section 272.02, subdivision 19; no specific changes to 273.38 are shown.",
      "modified": []
    },
    "citation": "273.38",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Minnesota Statutes 2024 section 273.41, subdivision 1.5 is listed as being amended in the bill, but the excerpt does not include the actual text of changes to this subdivision.",
      "modified": []
    },
    "citation": "273.41",
    "subdivision": "1.5"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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