Property tax relief for transmission lines
August 5th, 2015
My clients have a tendency to hang around like bad habits — once awake to utility schemes, they take a bite and won’t let go. I’ve been blessed with an active bunch, and today I woke up to another example. Nancy “BOOM!” Prehn is one of my faves, she lives on top of the only natural gas underground storage dome in Minnesota, under about 10 square miles north of Waseca. She singlehandedly got an EAW on how the gas company was handling water. At the time, they were releasing water from wells onto their fields, and it wasn’t helping the corn and beans any. Turns out it wasn’t seriously polluted, and the gas company had to build a water treatment facility and storage tanks at each well to contain the water, and then suck it out, bring it over to HQ and run it through the treatment system before releasing it.
Nancy has a way of being ahead of the curve, and when she starts digging, look out. Now she’s working on tax credits for those with utility infrastructure on their land, like a natural gas dome! It’s needed for gas and oil pipelines too!
Here’s what she found today, from the 1979 legislative session, check Article 2, Section 20, a tax credit for landowners living under transmission lines — how did I not know this?
| Chapter 303 | HF1495 |
And it’s still law today:
How much is this tax credit? Well, it’s complicated… and there’s a ceiling, see the statute for specifics:
It was enacted during the last transmission build-out, circa 1979, and has been changed many times over the years:
History:
(2012-3) 1925 c 306 s 3; 1949 c 554 s 3; 1978 c 658 s 4; 1979 c 303 art 2 s 20; 1980 c 607 art 10 s 3; 1Sp1981 c 1 art 2 s 15; 1982 c 523 art 16 s 1; 1Sp1985 c 14 art 4 s 70; 1Sp1986 c 1 art 4 s 24; 1987 c 268 art 6 s 35; 1Sp1989 c 1 art 2 s 11; 1990 c 604 art 3 s 22; 1Sp2001 c 5 art 3 s 44; 2003 c 127 art 5 s 21; 2014 c 275 art 1 s 90
Note this one that changed it from any “high voltage transmission line” as defined by then PPSA 116C.52, Subd. 3, to a high voltage transmission line “with a capacity of 200 kilovolts or more”
which also happened in the Buy the Farm statute:
Bottom line — it’s good people affected by transmission get a tax credit for their burden, but it’s bad that it’s not assessed to the ones that took that easement. It should be assessed to utilities/energy companies, the ones causing it and benefiting from it, not the rest of us taxpayers who have to make up the difference for local governments who need the tax revenues.
TO DO: We need to make this tax credit applicable to all energy infrastructure (Note I said “energy” and not “utility” because there’s a lot of infrastructure being built that is NOT utility. but oil companies, and those “transmission only” private purpose companies.) and to assess the entity that burdened the property for the amount of that tax credit.
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