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, improvements must have been made after January 1, 2016, and must be related to public transit programs, safety enhancements funded by state or federal programs, or emission reduction initiatives. The commissioner of revenue is tasked with estimating the market value of the railroad property following these improvements and must apply the exclusions proportionately across all railroad operating property in the state.

Additionally, the bill establishes a yield capitalization rate adjustment for determining the unit value of railroad property, ensuring it is no less than 0.05 percent of the lowest rates set by neighboring states. The effective date for the yield capitalization rate adjustment is set for taxes payable in 2025, while the valuation exclusions for improvements are effective retroactively for the assessment year 2024. This legislative change aims to incentivize investments in railroad infrastructure that enhance public transit, safety, and environmental standards.

Statutes affected:
Introduction: 270.84, 273.11