8.4. SR 07-31-1995 - Laserfiche WebLink

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Law summaries continued • reports and the comments will then be sent to the appropriate legislative .committees. Effective dates Most provisions aze effective for districts for which requests for certification are made after June 30, 1995. The financial reporting provi- sions take effect on January 1, 1996. Changes in the LGA/HACA penalty aze effective for all hazardous sub- stance subdistricts and for districts for which the request for certification is made after June 30, 1994 so that existing districts that were subject to the penalty, have the option to make the local contribution instead. Property tax refund as deduction on tax statement Homeowners' regulaz ("circuit breaker") and special ("targeting") property tax refunds will be reported as deductions on property tax statements and will be paid directly. to the county treasurer. The first yeaz of the new payment method will be 1998. The regular property tax refund and the targeted refund will be itemized separately on the truth in taxation notice, and the notice will state that the deduction for the targeted property tax refund is contingent upon continuity in ownership of the property. Even though the regulaz ("circuit breaker") property tax refund will be reported on the property tax statement, qualifying property owners will continue to file the M-IPR form with the state. ~-,<' ~- s--~~ ~ndoor ice arena --1G~erials and supplies used for the construction of indoor ice arenas will be exempt from the sales tax as long as . the arena is intended to be used primarily for youth athletic activities and it is owned and operated under a joint powers agreement with the school district. This provision is effective for • sales made between June 30, 1995 and July 1, 1996. Note: The Omnibus State Government Bill also contains $2.9 million in available state grants for new ice arenas. Wind energy property The property tax exemption for wind energy conversion systems is modified to exempt systems installed between January 1, 1991 and January 2, 1995, and to exempt systems constructed after January 1, 1995 only if they aze located within the same county and owned by the same owner and produce in aggregate two or less megawatts of electricity. The turbines, transformers, blades, and related equipment will remain exempt from the property tax, for those systems installed on or after January 1, 1995 which are located in the same county, owned by the same owner, and produce more than two megawatts of electricity. Property taxes will be imposed on foundation and support pad and 30 percent of the associated. supporting and protective structures after a five year exemption period. Wind energy tax definitions "Wind energy system" means a wind energy conversion system defined in Minnesota law which is used as an electric power source. "Area" means the counties of Lincoln and Pipestone. "Home county" means the county of Pipestone. "Municipality" means any city or town located in the county of Lincoln or Pipestone. "Qualifying wind energy system net tax capacity" includes. the taxable portion of the net tax capacity of any wind energy system located in the area installed after January 1, 1996 and the portion of the hypothetical net tax capacity that would be included on a wind energy system located in the area installed after January 1, 1991 and before January 2, 1995, that would be com- puted if that property was subject to taxation. In determining local tax rates for a municipality in which wind energy systems are located, the county auditor will deduct the qualifying wind energy system net tax capacity (the tax capacity of the taxable wind energy systems) from the total net tax capacity of each municipality containing this property. The county auditor is required to determine the municipal wind energy tax by multiplying each municipality's tax rate by the net tax capacity of the taxable wind energy property located within the municipal- ity. The sum of these amounts for all municipalities in the area will be called the "municipal wind energy distribu- tion pool." A similar provision exists for determining county wind energy tax. Each municipality within the azea is entitled to receive a distribution from the municipal wind energy distribution pool equal to its proportion of qualify- ing wind energy net tax capacity relative to the total for all municipali- ties in the area. Each county within the azea is entitled to a similaz distribution with the additional qualification that each county. shall be entitled to a distribution equal to the greater of ten percent of the total county wind energy distribution pool or fifty percent of the county's wind energy tax. The home county auditor is responsible for determining for each municipality and each county in the area the difference between the municipality or county wind energy tax and the wind energy distribution. These differences must be certified to the other county by May 16 of each year. By June 15 and November 15 of each year, each county treasurer in a county having a total wind energy tax in excess of the total wind energy distribution must pay one-half of the excess to the other. county in accor- dance with the home county auditor's certification. The treasurer in each area must pay the county and each munici- pality its wind energy distribution amounts by June 25 and November 25 of each year. 1995 Law Summaries LS 5