3.4. SR 04-09-2001 - Laserfiche WebLink

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rule to the personal property (the value of the unit as a whole as opposed to the individual component parts.) In what this writer believes is then an inconsistency, the DOR then subtracts from the entity the pollution control exemption. (The definition of the unit value rule flies in the face of then deducting an individual piece of the entity.) This value is then allocated to the respective host communities. Once that is done, the local assessor places a value on the books for the lands. This is then the estimated market value of the property. As a regulated industry, any property taxes are made part of the rate base that is approved by the Public Utilities Commission (PUC). The taxes are then "folded into" the rates that are charged the electrical consumer. One of the biggest concerns that some legislators have had is what they perceive as local host communities taking advantage of the "golden goose" and having higher than average tax spending per capita than elsewhere in the state. Please note Sherburne County has never been incorporated into this mix to this writer's knowledge. Their concern is that this lavish spending that they perceive is being passed along to other rate base payors without discretion. The second consternation that some legislators feel has to do with the annexation process of some power plants that have occurred after the siting of the same. For instance, the Red Wing Nuclear Power plant was sited 6 miles out from the city limits. The City then annexed the plant. The same annexation occurred with the Becker (Sherco) power plant. At the time of annexation, the property tax rates in the respective townships were lower than the city spending levels. The spending levels of some host communities and the annexation efforts are two issues that have to be dealt with when addressing the legislators. What the legislators fail to hear is the following: · There are inherent disadvantages in hosting power plants. For example, the City of Becker has snirt (smog, snow and dirt) that they have to content with in the winter. The Sherco power plant is the biggest belcher of air pollutants in the state of Minnesota. The City of Red Wing gets to deal with the "glow Factor" from the nuclear plants; the County of Sherburne has hundreds of trains per year that run on the tracks. The more train traffic, the higher the incidents of car/train crashes. All host communities have negative impacts with the facilities. Power plants are not considered green industry. That there are significant tax exemptions that the power plants already enjoy. The pollution control exemption, DOE credits, decreasing valuation because of DOR rule changes, an excelerated depreciation schedules, capitalization rates that are not market derived, etc. If the host communities are not given any tax stream from the utilities, then what incentive is there to site additional capacity or new facilities given the negative consequences of the facilities? The DOR came out with the study recommendation in January 2001 that was recently presented before the House tax Committee. The recommendations are to have the taxes for schools are funded by the state thereby providing utilities