Minn. R. agency 181, ch. 8106, pt. 8106.0600
After the Minnesota portion of the unit value of the railroad company is determined, property which is either exempt from taxation, such as personal property, or classified as nonoperating will be deducted from the Minnesota portion of the unit value to the extent that it has been included in the computation of this value.
Property which has been included in the computation of the unit value but has been defined as nonoperating property will be valued by the local assessor. The Minnesota portion of the unit value will be reduced by the restated cost of this property. Only nonoperating property located within Minnesota will be eligible for this exclusion.
The railroad company shall have the responsibility to submit to the commissioner of revenue, in the form required by the commissioner, such schedules of nonoperating property as the commissioner may require.
In addition to nonoperating property which will be valued and assessed locally, a deduction from the Minnesota portion of the unit value will be made for personal property.
A percentage of the Minnesota portion of the unit value before deducting nonoperating property will be excluded as personal property. This percentage will be computed in the following way:
XYZ Railway
| Personal Property Account | Amount in Minnesota | |
| Computer and Word Processing Equipment | $ 89,200 | |
| Coal and Ore Wharves | 100,000 | |
| Communication Equipment | 100,000 | |
| Signals and Interlockers | 200,000 | |
| Roadway Machines | 200,000 | |
| Shop Machinery | 100,000 | |
| Power Plant Machinery | 100,000 | |
| * Equipment -- Owned and Leased | 2,250,000 | |
| 3,139,200 | ||
| * Total Equipment Account | $9,000,000 | |
| Car and Locomotive Miles in Minnesota | 1,000,000 | |
| Total Car and Locomotive Miles | 4,000,000 | |
| Ratio of Minnesota to Total | 25% | |
| Minnesota Allocated Equipment Account | $2,250,000 | |
| Restated Cost Account | Amount in Minnesota | |
| Road | $2,990,000 | |
| Equipment -- Owned and Leased | 2,250,000 | |
| Construction Work in Progress | 800,000 | |
| General expenditures | 500,000 | |
| $6,540,000 | ||
| Minnesota Personal Property Accounts | $3,139,200 | |
| Minnesota Restated Cost | $6,540,000 | |
| Ratio of Personal Property to Cost | 48% | |
| Minnesota portion of unit value | 5,108,875 | |
| Personal Property exclusion at 48% | 2,452,260 | |
| Taxable Minnesota Portion of Unit Value | $2,656,615 |
Minn. R. agency 181, ch. 8106, pt. 8106.0600
Statutory Authority: MS s 14.388; 270.84; 270C.06