On Tuesday, February 5, Senator Mark Johnson (R-East Grand Forks) presented legislation that would provide property tax abatements on small town natural gas pipelines. The legislation, SF 318, would allow for expansion of natural gas services in Rural Minnesota, developing access in underserved communities, and reducing the cost for residential and business consumers.

“Many communities in rural Minnesota have limited or no access to cheap natural gas for their homes and businesses,” said Senator Mark Johnson. “This legislation makes it possible for the industry to expand the pipeline network by lowering taxes on natural gas infrastructure.”

Transmission of natural gas has increased significantly since 2012 with many communities in rural Minnesota seeing pipelines installed during that period. Over the same period, average property tax costs have risen significantly – from $16.40 per customer in 2010 to $94.43 per customer in 2018.

The tax abatement fixes this, giving companies an incentive to connect new communities. With natural gas, residential homes could see savings in the range of $500 to $1000 per year. Businesses too could see savings in the range of 20-40% per year. Communities would also benefit, saving $250,000 to $1,000,000 per year without even factoring potential economic development and the attraction of new business.