Bill > HF506

This bill modifies property tax provisions for electric cooperatives by narrowing the tax exemption and assessment rules for their electricity distribution systems. Specifically, the bill limits the tax exemption to only distribution lines and systems, explicitly excluding substations, transmission equipment, and generation equipment from the previous broader exemption. Under the new provisions, electric cooperatives organized on a mutual, nonprofit, and cooperative plan will be taxed a flat fee of $10 for every 100 members, which will replace personal property taxes for their rural distribution systems. The bill imposes a 10% penalty for late tax payments and specifies that these new tax rules will take effect for the assessment year 2026 and thereafter. By making these changes, the bill aims to create a more precise and standardized approach to taxing electric cooperative infrastructure while maintaining their nonprofit, cooperative nature.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0506&ssn=0&y=2025