Nearly 60 alumni from Leadership Minnesota toured the Prairie Island nuclear power plant in Red Wing. The program, exclusive to the Minnesota Chamber, provides an inside look at the state's changing economy and the issues that will shape its future. Andrea Walsh (from left), chair-elect of the Minnesota Chamber Board, President David Olson and Board Chair Dave McMillan attended the Governors’ Summit in Washington, D.C., hosted by the U.S. Chamber of Commerce. The event coincided with the release of the report, “Enterprising States,” which highlights successful state strategies for job creation and economic growth. Businesses leaders provide feedback on Minnesota Chamber legislative initiatives during a regional policy session in Bloomington. Randy Reinke, president and CEO, Custom Products of Litchfield, moderates a Grow Minnesota! panel on how businesses can prepare and maximize their growth as Minnesota emerges from the recession. Andrea Walsh (from left), chair-elect of the Minnesota Chamber Board, President David Olson and Board Chair Dave McMillan attend the Governors’ Summit in Washington, D.C., hosted by the U.S. Chamber of Commerce. The winning foursome from the 2010 golf tournament held in Duluth at Northland Country Club. From left to right: Rebecca Klett, Lockridge Grindal Nauen P.L.L.P., Tom Reinhart, Kwik Trip, Inc., Steve Lasky, Dairy Queen and Nate Mussell, Lockridge Grindal Nauen P.L.L.P. Andrea Walsh (from left), chair-elect of the Minnesota Chamber Board, President David Olson and Board Chair Dave McMillan attended the Governors’ Summit in Washington, D.C., hosted by the U.S. Chamber of Commerce. The event coincided with the release of the report, “Enterprising States,” which highlights successful state strategies for job creation and economic growth. Businesses leaders provide feedback on Minnesota Chamber legislative initiatives during a regional policy session in Bloomington. Randy Reinke, president and CEO, Custom Products of Litchfield, moderates a Grow Minnesota! panel on how businesses can prepare and maximize their growth as Minnesota emerges from the recession. Andrea Walsh (from left), chair-elect of the Minnesota Chamber Board, President David Olson and Board Chair Dave McMillan attend the Governors’ Summit in Washington, D.C., hosted by the U.S. Chamber of Commerce. The winning foursome from the 2010 golf tournament held in Duluth at Northland Country Club. From left to right: Rebecca Klett, Lockridge Grindal Nauen P.L.L.P., Tom Reinhart, Kwik Trip, Inc., Steve Lasky, Dairy Queen and Nate Mussell, Lockridge Grindal Nauen P.L.L.P. Nearly 60 alumni from Leadership Minnesota toured the Prairie Island nuclear power plant in Red Wing. The program, exclusive to the Minnesota Chamber, provides an inside look at the state's changing economy and the issues that will shape its future.

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Personal Property Tax

Issue

How do we eliminate the personal property tax imposed on utility companies to the benefit of customers, taxpayers and utilities?

Policy

The Minnesota Chamber supports fully eliminating the personal property tax imposed on utilities. Customer classes should receive savings based on the current share of the personal property tax that is embedded in their rates. The preferred method of realizing these savings is an expedited rate or tariff amendment. Under this approach, utility companies would have 30 days from the effective date of the personal property tax legislation to file a rate or tariff amendment with its regulatory body.

The Chamber also supports creating a temporary replacement revenue system for local governments. The system should have the following components:

  • It should be based on the revenue local governments received from the personal property tax at the time the property becomes exempt.
  • It should be cost neutral to all customer classes.
  • It should be eliminated over a 10-year period. This is appropriate because the value of equipment will decrease over time and, in some cases, plants are decertified.
  • It should not take the form of a surcharge on energy bills.

Business Impact

Eliminating the personal property tax on utilities will reduce the price of electricity for customers. Eliminating the tax is necessary to keep out-of-state generators from having a competitive advantage. This proposal also has the potential to shift property tax burden from utility personal property to all other classes of property (including business property) in a jurisdiction with utility personal property, because any property tax increase will be spread across the reduced tax base. This will result in all other classes (including homeowners, i.e. voters) paying closer to their fair share of future tax increases. As a result, local accountability for spending decisions will increase since local taxpayers, including homeowners and businesses, will pay a greater share of the costs of the services from which they benefit. Utility companies will continue to pay a significant tax on real property, but they no longer will pay the enormous premium resulting from the tax on their personal property.

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