Senate Study Bill 3197 SENATE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CO=CHAIRPERSON ZIEMAN) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the assessment for property taxation purposes 2 of machinery, equipment, and fixtures used at concrete mixing 3 facilities and including effective date and retroactive 4 applicability date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5153XK 81 7 sc/je/5 PAG LIN 1 1 Section 1. Section 427A.1, subsection 1, paragraph c, Code 1 2 2005, is amended to read as follows: 1 3 c. Buildings, structures or improvements, any of which are 1 4 constructed on or in the land, attached to the land, or placed 1 5 upon a foundation whether or not attached to the foundation. 1 6 However, property taxed under chapter 435 and property that is 1 7 a concrete batch plant as that term is defined in subsection 4 1 8 shall not be assessed and taxed as real property. 1 9 Sec. 2. Section 427A.1, subsection 4, Code 2005, is 1 10 amended to read as follows: 1 11 4. Notwithstanding the definition of "attached" in 1 12 subsection 2, property is not "attached" ifiteither of the 1 13 following conditions are met: 1 14 a. It is a fixture used for cooking, refrigeration, or 1 15 freezing of value=added agricultural products, used in value= 1 16 added agricultural processing or used in direct support of 1 17 value=added agricultural processing. For purposes of this 1 18 subsection, "direct support" includes storage by public 1 19 refrigerated warehouses for processors of value=added 1 20 agricultural products. Such fixtures shall not be considered 1 21 "attached" whether owned directly by the processor or 1 22 warehouse operator or by another who leases the fixture to the 1 23 processor or warehouse operator. Thissubsectionparagraph 1 24 shall not apply to fixtures used primarily for retail sale or 1 25 display. 1 26 b. It is a concrete batch plant. A "concrete batch plant" 1 27 is the machinery, equipment, and fixtures used at a concrete 1 28 mixing facility to process cement dry additive and other raw 1 29 materials into concrete or used in direct support of such 1 30 processing. For purposes of this paragraph, "direct support" 1 31 includes storage of raw materials used in processing. Such 1 32 fixtures shall not be considered "attached" whether owned 1 33 directly by the processor or by another who leases the fixture 1 34 to the processor. 1 35 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 2 1 This Act, being deemed of immediate importance, takes effect 2 2 upon enactment and applies retroactively to January 1, 2005, 2 3 for assessment years beginning on or after that date. 2 4 EXPLANATION 2 5 This bill provides that machinery, equipment, and fixtures 2 6 used to process raw materials into concrete at a concrete 2 7 mixing facility are not buildings, structures, and 2 8 improvements that are not assessed and taxed as real property 2 9 for purposes of property taxation. The bill also provides 2 10 that such machinery, equipment, and fixtures are not 2 11 considered attached for purposes of property taxation. 2 12 The bill takes effect upon enactment and applies 2 13 retroactively to assessment years beginning on or after 2 14 January 1, 2005. 2 15 LSB 5153XK 81 2 16 sc:nh/je/5