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Last Updated: 7/27/2012

Contamination Tax Introduction

  • The contamination tax was enacted by Laws 1993, Chapter 375, Article 12 and amended by Laws 1994, Chapter 587, Article 12, Section 5.
  • This tax is effective beginning with the taxes payable year 1995, and applies to contamination related reductions in market value in effect for the levy year regardless of the year in which the reductions were granted.
  • The contamination tax is a statewide tax with potential application in all 87 counties.
  • The contamination tax applies to the "contamination value" of a parcel of real property. The contamination tax does not apply to personal property.
  • The "contamination value" of a parcel of real property is the amount of market value reduction (if any) that is granted for property tax purposes for the assessment year due to the presence of contaminants. The presence of contaminants includes the release or threatened release on the property of a harmful substance as defined by M.S. 115B.25, Subd. 7a.
  • Contamination values are not part of the tax base for the purpose of general property taxes. The contamination tax is not a property tax. It is a property related tax.
  • Since the contamination tax is not a property tax, it is not eligible for either the property tax refund or targeting.
  • None of the contamination tax determined for a property is to be used for tax increment or fiscal disparity purposes.
  • The contamination tax may impact various classes of real property, including commercial/industrial, apartments, residential homesteads, agricultural homesteads, and agricultural non-homesteads.
  • For contamination tax purposes, the contamination may involve structures, soil, ground water, and air.
  • For contamination tax purposes, the contamination may include commercial chemicals, petroleum products, asbestos, radon gas, pesticides, fertilizers, and other harmful substances.

Next Section: Determination of the Contamination Value
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