Bill Text: MN SF2686 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Biofuels, wine, beer, distilled beverages or dairy products production storage structures real property definition exclusion
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-17 - Referred to Taxes [SF2686 Detail]
Download: Minnesota-2013-SF2686-Introduced.html
1.2relating to taxation; property; modifying the definition of real property; amending
1.3Minnesota Statutes 2012, section 272.03, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
1.6 Subdivision 1. Real property. (a) For the purposes of taxation, "real property"
1.7includes the land itself, rails, ties, and other track materials annexed to the land, and all
1.8buildings, structures, and improvements or other fixtures on it, bridges of bridge companies,
1.9and all rights and privileges belonging or appertaining to the land, and all mines, iron ore
1.10and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
1.11(b) A building or structure shall include the building or structure itself, together with
1.12all improvements or fixtures annexed to the building or structure, which are integrated
1.13with and of permanent benefit to the building or structure, regardless of the present use
1.14of the building, and which cannot be removed without substantial damage to itself or to
1.15the building or structure.
1.16(c)(i) Real property does not include tools, implements, machinery, and equipment
1.17attached to or installed in real property for use in the business or production activity
1.18conducted thereon, regardless of size, weight or method of attachment, and mine shafts,
1.19tunnels, and other underground openings used to extract ores and minerals taxed under
1.20chapter 298 together with steel, concrete, and other materials used to support such openings.
1.21(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment
1.22includable as real estate by paragraphs (a) and (b) even though such machinery and
1.23equipment is used in the business or production activity conducted on the real property if
2.1and to the extent such business or production activity consists of furnishing services or
2.2products to other buildings or structures which are subject to taxation under this chapter.
2.3(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a
2.4structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has
2.5structural, insulation, or temperature control functions or provides protection from the
2.6elements, unless the structure is primarily used in the production of biofuels, wine, beer,
2.7distilled beverages, or dairy products. Such an exterior shell is included in the definition
2.8of real property even if it also has special functions distinct from that of a building, or if
2.9such an exterior shell is primarily used for the storage of ingredients or materials used in
2.10the production of biofuels, wine, beer, distilled beverages, or dairy products or the storage
2.11of finished biofuels, wine, beer, distilled beverages, or dairy products.
2.12(d) The term real property does not include tools, implements, machinery,
2.13equipment, poles, lines, cables, wires, conduit, and station connections which are part of a
2.14telephone communications system, regardless of attachment to or installation in real
2.15property and regardless of size, weight, or method of attachment or installation.
2.16EFFECTIVE DATE.This section is effective for assessment year 2015 and for
2.17taxes payable in 2016 and thereafter.
1.3Minnesota Statutes 2012, section 272.03, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
1.6 Subdivision 1. Real property. (a) For the purposes of taxation, "real property"
1.7includes the land itself, rails, ties, and other track materials annexed to the land, and all
1.8buildings, structures, and improvements or other fixtures on it, bridges of bridge companies,
1.9and all rights and privileges belonging or appertaining to the land, and all mines, iron ore
1.10and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
1.11(b) A building or structure shall include the building or structure itself, together with
1.12all improvements or fixtures annexed to the building or structure, which are integrated
1.13with and of permanent benefit to the building or structure, regardless of the present use
1.14of the building, and which cannot be removed without substantial damage to itself or to
1.15the building or structure.
1.16(c)(i) Real property does not include tools, implements, machinery, and equipment
1.17attached to or installed in real property for use in the business or production activity
1.18conducted thereon, regardless of size, weight or method of attachment, and mine shafts,
1.19tunnels, and other underground openings used to extract ores and minerals taxed under
1.20chapter 298 together with steel, concrete, and other materials used to support such openings.
1.21(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment
1.22includable as real estate by paragraphs (a) and (b) even though such machinery and
1.23equipment is used in the business or production activity conducted on the real property if
2.1and to the extent such business or production activity consists of furnishing services or
2.2products to other buildings or structures which are subject to taxation under this chapter.
2.3(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a
2.4structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has
2.5structural, insulation, or temperature control functions or provides protection from the
2.6elements, unless the structure is primarily used in the production of biofuels, wine, beer,
2.7distilled beverages, or dairy products. Such an exterior shell is included in the definition
2.8of real property even if it also has special functions distinct from that of a building, or if
2.9such an exterior shell is primarily used for the storage of ingredients or materials used in
2.10the production of biofuels, wine, beer, distilled beverages, or dairy products or the storage
2.11of finished biofuels, wine, beer, distilled beverages, or dairy products.
2.12(d) The term real property does not include tools, implements, machinery,
2.13equipment, poles, lines, cables, wires, conduit, and station connections which are part of a
2.14telephone communications system, regardless of attachment to or installation in real
2.15property and regardless of size, weight, or method of attachment or installation.
2.16EFFECTIVE DATE.This section is effective for assessment year 2015 and for
2.17taxes payable in 2016 and thereafter.
