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Tax Rates for Utility and Pipeline Property
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Depending on the property type, utility and pipeline operating property is subject to different tax rates, class rates, tax distribution, and other administrative differences.
Structures on owned land are real property assessments. The remaining property types are personal property assessments.
Class Rate
The class rate applied to utility and pipeline property is
- 1.5% on the first $150,000
- 2% on the value above $150,000
Note: Other machinery and electric generation machinery that has a class rate of 2%.
This information does not include the state general levy class rate.
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These property types are taxed at the local tax rate where the property is located.
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Property Type Descriptions
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Abbreviation
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Notes
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Electric Transmission Lines 69 kilovolts or more Inside a City or Organized Township
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Elec Transm ≥69kV City or Org Twp.
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Does not include high voltage transmission lines 100kV or more, over 1,500 feet in length, and built after July 1, 1974.
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High Voltage Transmission Lines (200 kilovolts or more) in a City or Organized Township, built after 7/1/1974
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Elec Transm ≥200kV City or Org Twp, Built After 7/1/1974
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10% of tax revenue funds the utility property tax credit, the remaining funds are distributed according to local tax rates.
Land under these power lines may qualify for power line credits.
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Personal Property of a Transportation Pipeline
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Trans Pipeline
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The department certifies these values by order.
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Personal Property of a Gas Distribution Utility
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Gas Distrib Utility
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Personal Property of a Water Utility
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Water Utility
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Other Machinery
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Other Machinery
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Electric Generating Machinery
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Elec Gen Machinery
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Only electric generating machinery is exempt from state general levy. Machinery located at generating plants that is not noted as generating machinery is transmission machinery and must pay the state general tax.
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Structure on Owned Land
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Structure, Owned Land
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Structure on Leased or Unowned Land
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Structure, Leased Land
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Tax Distribution
Counties distribute the taxes collected for these property types according to local tax rates.
These property types are taxed at the countywide tax rate.
The department certifies these values by order, except Electric Distribution Lines in a City, which are recommended values.
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Property Type Descriptions
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Abbreviation
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Notes
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Electric Distribution Lines in a City
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Elec Dist Lines City
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Electric Distribution Lines Outside of a City
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Elec Dist Lines Twp
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Does not include electric distribution lines that pay the REA Membership Tax instead of property taxes
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Electric Transmission Lines 69 kilovolts or more in an Unorganized Twp
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Elec Transm ≥69kV Unorg.
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Does not include high voltage transmission lines 100kV or more, over 1,500 feet in length, and built after July 1, 1974.
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Electric Transmission Lines under 69 kilovolts
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Elec Transm <69kV
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High Voltage Transmission Lines (100- 200 kilovolts) in an Unorganized Township, built after 7/1/1974
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Elec Transm 100-200kV Unorg, Built After 7/1/1974
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High Voltage Transmission Lines (200 kilovolts or more) in an Unorganized Township, built after 7/1/1974
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Elec Transm ≥200kV Unorg, Built After 7/1/1974
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Land under these power lines may qualify for power line credits.
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Tax Distribution
Counties distribute the taxes collected for these electric distribution and transmission lines (excluding high voltage transmission lines)
- 50% to general revenue fund
- 50% to general school fund
Counties distribute the taxes collected for high voltage transmission lines
- 50% to general revenue fund
- 40% to general school fund
- 10% to utility property tax fund
