MN SF3469

Minnesota's yield capitalization rate for railroad property valuation must be adjusted to be no less than 0.05% of the lowest rate used by Wisconsin, Iowa, South Dakota, or North Dakota, effective for taxes payable in 2025

Railroad property improvements made to accommodate public transit, light rail, commuter rail, or intercity passenger rail (including subgrade work, grading, ballast, ties, and rail switches) qualify for a market value exclusion from property tax assessment

Safety improvements to rail lines funded by state or federal safety programs—such as heavier rail replacement, eliminating rail joints, continuous welded rail, and bridge repairs—qualify for a separate valuation exclusion

Locomotive emission reduction improvements funded by state or federal safety grants, including modifying or replacing locomotives, also qualify for a valuation exclusion

All three valuation exclusions apply to improvements made after January 1, 2016, require application by December 31 for the following tax year, and are effective retroactively to assessment year 2024