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SF132 (Legislative Session 94 (2025-2026))

Individual income and corporate franchise taxes, certain state aid programs and public finance provisions modifications and appropriation

Related bill: HF506

AI Generated Summary

Purpose

  • Update property tax rules to modify exemption, valuation, and distribution provisions for certain electric cooperatives.
  • Specifically focus on property used to distribute electricity to farmers, and align related statutes (Minnesota Statutes 2024 sections 272.02, subdivision 19; 273.38; 273.41.1.5).

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.
  • Defines that electric power distribution lines and their attachments and appurtenances (not including substations, transmission lines, or generation equipment) that are used primarily for supplying electricity to farmers at retail are exempt from property tax.
  • Applies to property used for distributing electricity to farmers at retail.
  • Notes that substations, transmission or generation equipment are not covered by this exemption.
  • The bill also amends related sections (273.38 and 273.41.1.5) to reflect the exemption and its impact on valuation and distribution provisions.

Significant Changes to Existing Law

  • Expands or clarifies property tax exemptions for electric cooperatives by including distribution lines, attachments, and appurtenances used to serve farmers at retail.
  • Explicitly excludes substations, transmission lines, and generation equipment from the exemption.
  • Alters how these properties are valued and distributed for tax purposes through coordinated changes to the referenced statutes (272.02 Subd. 19, 273.38, 273.41.1.5).

Effects and Implications

  • Potential property tax relief for electric cooperatives on the exempt distribution infrastructure.
  • Possible downstream impact on costs for farmers or rural electric service areas that rely on this distribution infrastructure.
  • Clarifies what parts of a utility’s property qualify for exemption, reducing ambiguity in tax assessments.

Terminology and Key Concepts to Note

  • exemption
  • property taxes
  • electric cooperatives
  • electric power distribution lines
  • attachments
  • appurtenances
  • substations
  • transmission equipment/lines
  • generation equipment
  • farmers (retail electricity supply)
  • valuation
  • distribution provisions
  • Minnesota Statutes 2024, sections 272.02 Subd. 19; 273.38; 273.41.1.5

Relevant Terms - exemption - property taxes - electric cooperatives - electric power distribution lines - attachments - appurtenances - substations - transmission equipment - generation equipment - farmers - retail - valuation - distribution provisions - Minnesota Statutes 2024 - sections 272.02 Subd. 19; 273.38; 273.41.1.5

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 16, 2025SenateActionIntroduction and first reading
January 16, 2025SenateActionReferred toTaxes
January 21, 2025SenateActionAuthor added
January 23, 2025SenateActionAuthor added
March 17, 2025SenateActionComm report: To pass as amended
March 17, 2025SenateActionSecond reading
SenateActionRule 47, returned toTaxes
SenateActionSee

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 272.02, subdivision 19, to modify the property tax exemption for electric power distribution lines and their attachments and appurtenances used primarily for supplying electricity to farmers at retail, excluding substations or transmission or generation equipment.",
      "modified": [
        "Amends the exemption language for electric power distribution lines in 272.02, subd. 19."
      ]
    },
    "citation": "272.02",
    "subdivision": "subd. 19"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill lists Minnesota Statutes 2024 section 273.38 as a target for amendment.",
      "modified": [
        "Amends 273.38; specific changes are not provided in the excerpt."
      ]
    },
    "citation": "273.38",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill lists Minnesota Statutes 2024 section 273.41, subdivision 1.5 as a target for amendment.",
      "modified": [
        "Amends 273.41, subd. 1.5; specific changes are not provided in the excerpt."
      ]
    },
    "citation": "273.41",
    "subdivision": "subd. 1.5"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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