Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.45, subsection 27, Code Supplement 1 2 1995, is amended to read as follows: 1 3 27. The gross receipts from the sale or rental, on or1 4after July 1, 1987 or on or after July 1, 1985, in the case of1 5an industry which has entered into an agreement under chapter1 6260E prior to the sale or lease,of industrial machinery, 1 7 equipment and computers, including replacement parts which are 1 8 depreciable for state and federal income tax purposes, if the 1 9 following conditions are met: 1 10 a. The industrial machinery, equipment and computers shall 1 11 be directly and primarily used in the manner described in 1 12 section 428.20 in processing tangible personal property or in 1 13 research and development of new products or processes of 1 14 manufacturing, refining, purifying, combining of different 1 15 materials or packing of meats to be used for the purpose of 1 16 adding value to products, or in processing or storage of data 1 17 or information by an insurance company, financial institution 1 18 or commercial enterprise, or in the recycling or reprocessing 1 19 of waste products. As used in this paragraph: 1 20 (1) "Insurance company" means an insurer organized or 1 21 operating under chapters 508, 514, 515, 518, 518A, 519, 520 or 1 22 authorized to do business in Iowa as an insurerand having1 23fifty or more persons employed in this state excluding1 24licensed insurance agentsor a licensed insurance agent under 1 25 chapter 522. 1 26 (2) "Financial institutions" means as defined in section 1 27 527.2, subsection 9. 1 28 (3) "Commercial enterprise" includes businesses and 1 29 manufacturers conducted for profit and includes centers for 1 30 data processing services to insurance companies, financial 1 31 institutions, businesses and manufacturers but excludes 1 32 professions and occupations and nonprofit organizations. 1 33 b. The industrial machinery, equipment and computers must 1 34 be real property within the scope of section 427A.1, 1 35 subsection 1,paragraphsparagraph "e" or "j", and must. For 2 1 sales occurring after January 1, 1994, the property is not 2 2 required to be subject to taxation as real property.This2 3paragraph does not apply to machinery and equipment used in2 4the recycling or reprocessing of waste products qualifying for2 5an exemption under paragraph "a".2 6However, the provisions of chapters 404 and 427B which2 7result in the exemption from taxation of property for property2 8tax purposes do not preclude the property from receiving this2 9exemption if the property otherwise qualifies.2 10 The gross receipts from the sale or rental of hand tools 2 11 are not exempt. The gross receipts from the sale or rental of 2 12 pollution control equipment qualifying under paragraph "a" 2 13 shall be exempt. 2 14 The gross receipts from the sale or rental of industrial 2 15 machinery, equipment, and computers, including pollution 2 16 control equipment, within the scope of section 427A.1, 2 17 subsection 1, paragraphs "h" and "i", shall not be exempt. 2 18 Sec. 2. Section 427B.17, subsection 6, Code Supplement 2 19 1995, is amended by striking the subsection. 2 20 Sec. 3. Section 427B.17, subsection 7, Code Supplement 2 21 1995, is amended to read as follows: 2 22 7. For the purpose of dividing taxes under section 260E.4 2 23 or 260F.4, the employer's or business's valuation of property 2 24 defined in section 427A.1, subsection 1, paragraphs "e" and 2 25 "j", and used to fund a new jobs training project which 2 26 project's first written agreement providing for a division of 2 27 taxes as provided in section 403.19 is approved on or before 2 28 June 30, 1995, shall be limited to thirty percent of the net 2 29 acquisition cost of the property. The community college shall 2 30 notify the assessor by February 15 of each assessment year if 2 31 taxes levied against such property of an employer or business 2 32 will be used to finance a project in the following fiscal 2 33 year. In any fiscal year in which the community college does 2 34 rely on taxes levied against an employer's or business's 2 35 property defined in section 427A.1, subsection 1, paragraph 3 1 "e" or "j", to finance a project, such property shall not be 3 2 valued pursuant to subsection 2 or 3, whichever is applicable, 3 3 for that fiscal year. An employer's or business's taxable 3 4 property used to fund a new jobs training project shall not be 3 5 valued pursuant to subsection 2 or 3, whichever is applicable, 3 6 until the assessment year following the calendar year in which 3 7 the certificates or other funding obligations have been 3 8 retired or escrowed.The taxpayer's valuation for such3 9property shall then be the valuation specified in subsection 13 10for the applicable assessment year.If the certificates 3 11 issued, or other funding obligations incurred, between January 3 12 1, 1982, and June 30, 1995, are refinanced or refunded after 3 13 June 30, 1995, the valuation of such property shall then be 3 14 the valuation specified in subsection 2 or 3, whichever is 3 15 applicable, for the applicable assessment year beginning with 3 16 the assessment year following the calendar year in which those 3 17 certificates or other funding obligations are refinanced or 3 18 refunded after June 30, 1995. 3 19 Sec. 4. Section 427B.19, Code Supplement 1995, is amended 3 20 by adding the following new subsections: 3 21 NEW SUBSECTION. 5. For purposes of this section, 3 22 "assessed value of the property assessed under section 3 23 427B.17" does not include the value of property defined in 3 24 section 427A.1, subsection 1, paragraphs "e" and "j", which is 3 25 obligated to secure payment of certificates or other 3 26 indebtedness incurred pursuant to chapter 260E or 260F. 3 27 NEW SUBSECTION. 6. For purposes of computing replacement 3 28 amounts under this section, that portion of an urban renewal 3 29 area defined as the sum of the assessed valuations defined in 3 30 section 403.19, subsections 1 and 2, shall be considered a 3 31 taxing district. 3 32 Sec. 5. Section 427B.19A, subsection 3, Code Supplement 3 33 1995, is amended to read as follows: 3 34 3. The replacement claims shall be paid to each county 3 35 treasurer in equal installments in September and March of each 4 1 year. The county treasurer shall apportion the replacement 4 2 claim payments among the eligible taxing districts in the 4 3 county. If the taxing district is an urban renewal area, the 4 4 amount of the replacement claim shall be apportioned as 4 5 provided in subsection 4. 4 6 Sec. 6. Section 427B.19A, Code Supplement 1995, is amended 4 7 by adding the following new subsection: 4 8 NEW SUBSECTION. 4. a. If the total assessed value of 4 9 property located in an urban renewal area taxing district is 4 10 equal to or more than that portion of such valuation defined 4 11 in section 403.19, subsection 1, the total tax replacement 4 12 amount computed pursuant to section 427B.19 shall be credited 4 13 to that portion of the assessed value defined in section 4 14 403.19, subsection 2. 4 15 b. If the total assessed value of the property is less 4 16 than that portion of such valuation defined in section 403.19, 4 17 subsection 1, the replacement amount shall be credited to 4 18 those portions of the assessed value defined in section 4 19 403.19, subsections 1 and 2, as follows: 4 20 (1) To that portion defined in section 403.19, subsection 4 21 1, an amount equal to the amount that would be produced by 4 22 multiplying the applicable consolidated levy times the 4 23 difference between the assessed value of the taxable property 4 24 defined in section 403.19, subsection 1, and the total 4 25 assessed value in the budget year for which the replacement 4 26 claim is computed. 4 27 (2) To that portion defined in section 403.19, subsection 4 28 2, the remaining amount, if any. 4 29 c. Notwithstanding the allocation provisions of paragraphs 4 30 "a" and "b", the amount of the tax replacement amount that 4 31 shall be allocated to that portion of the assessed value 4 32 defined in section 403.19, subsection 2, shall not exceed the 4 33 amount equal to the amount certified to the county auditor 4 34 under section 403.19 for the budget year in which the claim is 4 35 paid, after deduction of the amount of other revenues 5 1 committed for payment on that amount for the budget year. The 5 2 amount not allocated to that portion of the assessed value 5 3 defined in section 403.19, subsection 2, as a result of the 5 4 operation of this paragraph, shall be allocated to that 5 5 portion of assessed value defined in section 403.19, 5 6 subsection 1. 5 7 Sec. 7. NEW SECTION. 427B.19C ADJUSTMENT OF CERTAIN 5 8 ASSESSMENTS REQUIRED. 5 9 In the assessment year beginning January 1, 2005, the 5 10 amount of assessed value of property defined in section 5 11 403.19, subsection 1, for an urban renewal taxing district 5 12 which received replacement moneys under section 427B.19A, 5 13 subsection 4, shall be reduced by an amount equal to that 5 14 portion of the amount of assessed value of such property which 5 15 was assessed pursuant to section 427B.17, subsection 3. 5 16 Sec. 8. RETROACTIVE APPLICABILITY DATE. Section 2 of this 5 17 Act, striking section 427B.17, subsection 6, applies 5 18 retroactively to assessment years beginning on or after 5 19 January 1, 1995. 5 20 Sec. 9. EFFECTIVE DATE. This Act, being deemed of 5 21 immediate importance, takes effect upon enactment. 5 22 EXPLANATION 5 23 This bill makes several changes to the Iowa Code relating 5 24 to taxation of industrial machinery, computers and equipment. 5 25 The bill rewrites for clarity the section that exempts such 5 26 property from sales taxation. 5 27 The bill also eliminates in the definition of "insurance 5 28 company", for the purposes of sales tax exemption, the 5 29 requirement that 50 or more persons be employed by such an 5 30 insurance company in order to be eligible for the exemption. 5 31 The bill also includes in the definition of insurance company, 5 32 mutual insurance associations operating under chapter 518A and 5 33 licensed insurance agents under chapter 522. 5 34 This bill strikes the provision that requires that 5 35 industrial machinery, computers and equipment located in an 6 1 urban renewal area for which indebtedness has been incurred 6 2 continue to be taxed at 30 percent of net acquisition cost. 6 3 This property will now be subject to those current Code 6 4 provisions which provide that on or after January 1, 1995, 6 5 such property first assessed for taxation will be exempt from 6 6 property taxation, and the taxable value of such property 6 7 purchased before that date will be phased out over a four-year 6 8 period. 6 9 The bill also requires a community college to notify a 6 10 county assessor by February 15 of each year if a taxpayer's 6 11 property will be taxed to finance either an industrial new 6 12 jobs or small business training project in the coming fiscal 6 13 year. 6 14 This bill also defines a tax increment financing district 6 15 in an urban renewal area as a taxing district for purposes of 6 16 allocation of replacement moneys, and provides for the method 6 17 of allocation in those districts. 6 18 The bill takes effect upon enactment, and the section 6 19 repealing the tax on industrial machinery, computers and 6 20 equipment located in an urban renewal area applies 6 21 retroactively to assessment years beginning on or after 6 22 January 1, 1995. 6 23 LSB 4219HC 76 6 24 sc/cf/24
Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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