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 under section 270.84 and section 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 environmental safety measures aimed at reducing locomotive emissions. The bill mandates that the commissioner of revenue estimate the market value of the railroad property in the assessment year following the notification of improvements and requires applications to be submitted by December 31 each year for the exclusions to be effective for the following tax year.

Additionally, the bill specifies that the yield capitalization rate for determining the unit value of railroad property must be adjusted based on rates from neighboring states, ensuring it is no less than 0.05 percent of the lowest rate set in Wisconsin, Iowa, South Dakota, and North Dakota. The effective dates for these provisions vary, with some being effective for taxes payable in 2025 and others retroactively effective for assessment year 2024.

Statutes affected:
Introduction: 270.84, 273.11