What is the Issue Personal Property taxes. Like other businesses, Minnesota Power pays taxes on real property - land and buildings. But, unlike other businesses, we also pay taxes on personal property. It's like being taxed on the value of your land, your home and the personal belongings in your home. Who really Pays Minnesota Power customers.
All utilities pass property taxes on to customers through their electric rates.
Unlike the state imposed sales tax that is clearly itemized, personal property taxes are hidden. In essence, Minnesota Power acts as a tax collector for local taxing districts. Customers of cooperative and municipal utilities are taxed differently. As a result their customers generally pay far less property taxes yet enjoy the same services provided by local taxing districts. Minnesota Power's taxes on farm service are discounted, but still exceeds what cooperatives pay by a significant margin.