Electric cooperatives exemption, valuation, and distribution provisions modified.

HF 506 modifies property tax rules for rural electric cooperatives in Minnesota. It changes exemption and valuation provisions for distribution lines used primarily to supply electricity to farmers, excluding substations and generation equipment. The bill replaces property taxes on these distribution systems with a flat annual tax of $10 per 100 members (or fraction thereof) for eligible cooperatives organized under specific laws. This tax, paid by March 1, becomes the sole tax for that infrastructure and must be paid to the state revenue commissioner. The changes take effect for property assessments starting in 2026.