H.F. _____ Section 1. Section 437A.3, subsection 1, paragraph b, Code 1 2011, is amended by striking the paragraph. 2 Sec. 2. Section 437A.3, subsection 4, paragraph b, Code 3 2011, is amended by striking the paragraph. 4 Sec. 3. Section 437A.3, subsection 11, paragraph b, 5 subparagraphs (1) and (2), Code 2011, are amended to read as 6 follows: 7 (1) An electric power generating plant that is owned by 8 or leased to an electric company, electric cooperative, or 9 municipal utility, or any other taxpayer, and that initially 10 generates electricity subject to replacement generation tax 11 under section 437A.6 on or after January 1, 2003. 12 (2) An electric power generating plant that is owned by 13 or leased to an electric company, electric cooperative, or 14 municipal utility, or any other taxpayer, that initially 15 generated electricity subject to replacement generation tax 16 under section 437A.6 before January 1, 2003, and that is sold, 17 leased, or transferred, in full or in part, on or after January 18 1, 2003. If any portion of an electric power generating plant 19 is sold, the entire plant shall be treated as if it were a new 20 electric power generating plant. 21 Sec. 4. Section 437A.5, subsection 1, paragraph c, 22 unnumbered paragraph 3, Code 2011, is amended to read as 23 follows: 24 If the new electric power generating plant is part of a 25 cogeneration facility or new cogeneration facility , the natural 26 gas delivery rate for that plant shall be the lesser of the 27 natural gas delivery rate established in this paragraph “c” or 28 the rate per therm of natural gas as in effect at the time of 29 the initial natural gas deliveries to the plant for the natural 30 gas competitive service area where the new electric power 31 generating plant is located. 32 Sec. 5. Section 437A.8, subsection 4, paragraph d, 33 unnumbered paragraph 2, Code 2011, is amended by striking the 34 unnumbered paragraph. 35 -1- LSB 2082YC (3) 84 rn/nh 1/ 4

H.F. _____ Sec. 6. Section 437A.14, subsection 4, paragraph b, Code 1 2011, is amended by striking the paragraph. 2 Sec. 7. Section 437A.15, subsection 7, Code 2011, is amended 3 by striking the subsection. 4 Sec. 8. Section 437A.18, Code 2011, is amended to read as 5 follows: 6 437A.18 Tax imposition. 7 An annual statewide property tax of three cents per one 8 thousand dollars of assessed value is imposed upon all property 9 described in sections section 437A.16 and 437A.16A on the 10 assessment date of January 1. 11 Sec. 9. Section 437A.19, subsection 1, paragraph a, 12 subparagraph (8), Code 2011, is amended by striking the 13 subparagraph. 14 Sec. 10. Section 437A.19, subsection 2, paragraph e, Code 15 2011, is amended to read as follows: 16 e. In addition to reporting the assessed values as described 17 in this subsection , the director, on or before October 31 of 18 each assessment year, shall also report to the department of 19 management and to the auditor of each county the taxable value 20 of taxpayer property as of January 1 of such assessment year 21 for each local taxing district. For purposes of this chapter , 22 “taxable value” means the value for all property subject to 23 the replacement tax annually determined by the director, by 24 dividing the estimated annual replacement tax liability for 25 that property by the current fiscal prior year’s consolidated 26 taxing district rate for the taxing district where that 27 property is located, then multiplying the quotient by one 28 thousand. A taxpayer who paid more than five hundred thousand 29 dollars in replacement tax in the previous tax year or who 30 believes the taxpayer’s replacement tax liability will vary 31 more than ten percent from the previous tax year shall report 32 to the director by October 1 of the current calendar year, on 33 forms prescribed by the director, the estimated replacement tax 34 liability that will be attributable to all of the taxpayer’s 35 -2- LSB 2082YC (3) 84 rn/nh 2/ 4

H.F. _____ property subject to replacement tax for the current tax 1 year. The department shall utilize the estimated replacement 2 tax liability as reported by the taxpayer or the taxpayer’s 3 prior year’s replacement tax amounts to estimate the current 4 tax year’s taxable value for that property. Furthermore, a 5 taxpayer who has a new major addition of operating property 6 which is put into service for the first time in the current 7 calendar year shall report to the director by October 1 of the 8 current calendar year, or at the time the major addition is 9 put into service, whichever time is later, on forms prescribed 10 by the director, the cost of the major addition and, if not 11 previously reported, shall report the estimated replacement 12 taxes which that asset will generate in the current calendar 13 year. For the purposes of computing the taxable value of 14 property in a taxing district, the taxing district’s share of 15 the estimated replacement tax liability shall be the taxing 16 district’s percentage share of the “assessed value allocated 17 by property tax equivalent” multiplied by the total estimated 18 replacement tax. “Assessed value allocated by property tax 19 equivalent” shall be determined by dividing the taxpayer’s 20 current year assessed valuation in a taxing district by one 21 thousand, and then multiplying by the prior year’s consolidated 22 tax rate. 23 Sec. 11. REPEAL. Section 437A.16A, Code 2011, is repealed. 24 EXPLANATION 25 This bill deletes provisions relating to the imposition of a 26 replacement tax on electricity and natural gas providers which 27 were enacted during the 2010 Legislative Session in Senate File 28 2373. 29 The deleted provisions include adding a definition of a new 30 cogeneration facility and providing a means for allocating 31 the assessed value of a new cogeneration facility between 32 property of the facility that is subject to local assessment 33 and the property of the facility that is subject to the 34 replacement tax, and to exempt from property tax the value 35 -3- LSB 2082YC (3) 84 rn/nh 3/ 4

H.F. _____ of the property subject to the replacement tax by applying a 1 credit representing the value of such exempt property against 2 the total value of the facility. The deleted provisions also 3 include provisions relating to determination of the natural 4 gas delivery rate applicable to new cogeneration facilities, 5 and provisions in Code section 437A.18 applying the statewide 6 property tax to property of a new cogeneration facility. 7 Additionally, the bill deletes a provision in the definition 8 of an electric power generating plant that such a plant may be 9 owned by or leased to “any other taxpayer”, in addition to an 10 electric company, electric cooperative, or municipal utility. 11 Also deleted is a mechanism for refunding or crediting excess 12 replacement taxes, penalties, and interest paid into the 13 property tax relief fund established in Code section 426B.1 by 14 a new electric power generating plant, a provision applying 15 existing provisions regarding claims for refunds and credits 16 contained in Code section 437A.14 and stating that the director 17 of revenue shall have sole discretion regarding whether a 18 refund will be paid versus a credit granted. 19 Further, the bill deletes outdated provisions establishing 20 a utility replacement tax task force, a requirement that 21 taxpayers report to the director any gas or transmission 22 property that had been acquired at a cost of more than $1 23 million and disposed of in the preceding calendar year, and 24 a provision, with reference to determining and reporting the 25 taxable value of property subject to the replacement tax, 26 that calculations will utilize the current fiscal year’s 27 consolidated taxing district rate for the taxing district where 28 the property is located, rather than the prior fiscal year’s 29 rate. 30 -4- LSB 2082YC (3) 84 rn/nh 4/ 4