This bill amends Minnesota Statutes to provide market value exclusions for certain railroad properties, specifically targeting improvements made for public transit, safety, and environmental safety. It introduces new subdivisions to sections 270.84 and 273.11, which outline the criteria for these exclusions. For instance, the yield capitalization rate for assessing railroad property will be adjusted based on rates from neighboring states, ensuring it is no less than 0.05 percent of the lowest rate among them. Additionally, the bill establishes that improvements made to railroad properties after January 1, 2016, that are related to public transit programs, safety enhancements, or emission reductions will qualify for valuation exclusions.

The bill also mandates that the commissioner of revenue must estimate the market value of the railroad property in the assessment year following the notification of improvements by the taxpayer. Applications for these exclusions must be submitted by December 31 each year to be effective for the following year's taxes. The effective date for the yield capitalization rate adjustment is set for taxes payable in 2025, while the valuation exclusions for improvements are retroactively effective for the assessment year 2024.

Statutes affected:
Introduction: 270.84, 273.11