Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Rural Electric Coop Tax Exemption topic
No spam. Unsubscribe anytime.
House file 174 would update 1939 property‑tax exemption for rural electric co‑ops
Summary
Representatives and rural electric cooperative representatives told the Tax Committee House File 174 would clarify that a long‑standing 1939 property‑tax exemption for rural electric cooperatives covers modern equipment and appurtenances; the Department of Revenue and the Governor’s office support the update.
Representative Davids moved to lay over House File 174, a bill that clarifies an existing property‑tax exemption for rural electric cooperatives and updates statutory language to address modern equipment and technologies.
Jenny Glumack, director of government affairs for a rural electric cooperative trade association, told the committee the statute dates to 1939 and the update is needed to clarify the tax status of modern equipment such as newer meters and control devices. "The exemption was put in place to support the electrification of rural homes and businesses over 80 years ago," Glumack said, and the bill would extend the exemption’s scope "to address the tax treatment of new technology." She thanked Department of Revenue staff for working on the language.
Joanna Beres, legislative director for the Minnesota Department of Revenue, told the committee the administration supports the bill and that the proposal is included in the Governor’s budget recommendations. She said the law has not been updated since 1939 and that the department worked with stakeholders on the draft language.
Chair Davids renewed his motion to lay the bill over for possible inclusion in the omnibus tax bill; the committee accepted that motion and took no further action at this hearing.
