Bill > SF3469

This bill modifies property tax assessment rules for railroad properties in Minnesota, introducing three key provisions. First, it requires the state commissioner to adjust the yield capitalization rate (a method used to calculate property value) by comparing rates with neighboring states and ensuring Minnesota's rate is at least 0.05 percent lower than the lowest rate in Wisconsin, Iowa, South Dakota, or North Dakota. Second, the bill creates a tax valuation exclusion for railroad property improvements related to public transit infrastructure, such as subgrade work, grading, and rail line enhancements, made after January 1, 2016. Third, it establishes similar valuation exclusions for railroad safety improvements (like rail replacement, joint elimination, and bridge repairs) and environmental safety improvements (such as locomotive emission reductions) that were implemented through state or federal safety programs after January 1, 2016. For all three exclusions, railroad companies must apply by December 31 each year to receive the tax benefit for the following year, and the commissioner will apply the exclusion proportionately across all railroad operating property in the state. These changes are effective for taxes payable in 2025 and retroactively for the 2024 assessment year.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3469&ssn=0&y=2025