Bill > HF174

This bill modifies the taxation rules for electric cooperative associations by changing how their property is assessed and taxed. Specifically, the bill narrows the tax exemption for electric distribution systems by explicitly excluding substations, transmission equipment, and generation equipment from the previous broad exemption. Under the revised law, cooperative associations engaged in electrical power distribution will now be taxed $10 for each 100 members, with this tax replacing personal property taxes for rural distribution systems. The bill introduces a clear distinction between distribution lines and other electrical infrastructure, ensuring that only distribution systems in rural areas receive the special tax treatment. If the tax is not paid by March 1 of the following year, a 10% penalty will be added, and the unpaid amount will accrue interest. These changes will take effect for the assessment year 2025 and subsequent years, providing clarity and potentially increasing tax revenue from electric cooperatives by more precisely defining which assets are exempt from standard property taxation.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0174&ssn=0&y=2025