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Utility and Pipeline Property Types
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Utility and pipeline companies use the property type descriptions listed below to report their operating property to the Minnesota Department of Revenue.
These descriptions are necessary so counties can administer the property tax correctly. For example:
- Some High Voltage Transmission Lines may affect the Power Line Credit and others may not.
- Some property is taxed at the local tax rate and other at the countywide average.
- Structures on owned land are taxed as real property; structures on leased land are treated as personal property.
- Class rates are different for different types of property. (See Minnesota Statute 273.13)
- The state general property tax applies to some property types, but not to others. (See Minnesota Statute 275.025)
- The department recommends the values of some property types to counties, but orders values for others.
Companies need to report their property correctly to the department in order to ensure the correct property tax administration. This means listing differing property types separately even if they are located on the same parcel of land.
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Distribution lines are used to distribute electricity to the end user or customer. Property Type descriptions for distribution lines are:
- Electric Distribution Lines in a City
- Electric Distribution Lines Outside of a City
Transmission lines operate at relatively high voltages, from 69 kV up to 765 kV, and are used to transmit large quantities of electricity over long distances. Property type descriptions for transmission lines are:
- Electric Transmission Lines under 69kV
- Electric Transmission Lines 69kV or more Inside a City or Organized Township
- Electric Transmission Lines 69kV or more in an Unorganized Township
- High Voltage Transmission Lines (200kV or more) in a City or Organized Township, built after July 1, 1974
- High Voltage Transmission Lines (100-200kV) in an Unorganized Township, built after July 1, 1974
- High Voltage Transmission Lines (200kV or more) in an Unorganized Township, built after July 1, 1974
Structures include all buildings, structures, and other improvements or fixtures on land. Property type descriptions for structures are:
This does not include an amount for land. Land is locally assessed, non-operating property.
Machinery includes tools, implements, and other equipment. Examples include, but are not limited to:
- transforming, conversion, and switching equipment
- station equipment
- engines, motors, pumps and other pumping equipment
- compressor station equipment
- meters, gauges, and other equipment used to measure and regulate natural gas
- power plant equipment
- engines and engine driven generators
Property type descriptions for machinery (illustrated below) are:
- Machinery (used for machinery that does not generate electricity)
- Electric generation machinery
Other personal property is operating property that is neither a structure nor machinery. Property type descriptions for this property are:
Personal Property of a Transportation Pipeline, such as line pipe
Personal Property of a Gas Distribution Utility, such as pipe and fittings
- Personal Property of a Water Utility, such as pipe
