Text: S03350 Text: S03352 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend Senate File 466 as follows:
1 2 #1. By striking page 2, line 17 through page 4,
1 3 line 18 and inserting the following:
1 4 "MACHINERY AND EQUIPMENT
1 5 EXEMPTION AND REPLACEMENT FUNDS
1 6 Sec. . Section 427B.17, Code 1995, is amended
1 7 by striking the section and inserting in lieu thereof
1 8 the following:
1 9 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION.
1 10 1. Property defined in section 427A.1, subsection
1 11 1, paragraphs "e" and "j", shall be valued by the
1 12 local assessor as follows:
1 13 a. For the assessment year beginning January 1,
1 14 1995, at twenty-six percent of the net acquisition
1 15 cost.
1 16 b. For the assessment year beginning January 1,
1 17 1996, at twenty-two percent of the net acquisition
1 18 cost.
1 19 c. For the assessment year beginning January 1,
1 20 1997, at eighteen percent of the net acquisition cost.
1 21 d. For the assessment year beginning January 1,
1 22 1998, at fourteen percent of the net acquisition cost.
1 23 e. For the assessment year beginning January 1,
1 24 1999, at ten percent of the net acquisition cost.
1 25 f. For the assessment year beginning January 1,
1 26 2000, at six percent of the net acquisition cost.
1 27 g. For the assessment year beginning January 1,
1 28 2001, and all subsequent assessment years, at zero
1 29 percent of the net acquisition cost.
1 30 2. For purposes of this section:
1 31 a. Property assessed by the department of revenue
1 32 and finance pursuant to sections 428.24 to 428.29, or
1 33 chapters 433, 434, and 436 to 438 shall not receive
1 34 the benefits of this section.
1 35 Any electric power generating plant which operated
1 36 during the preceding assessment year at a net capacity
1 37 factor of more than twenty percent, shall not receive
1 38 the benefits of this section. For purposes of this
1 39 section, "electric power generating plant" means any
1 40 name plate rated electric power generating plant, in
1 41 which electric energy is produced from other forms of
1 42 energy, including all taxable land, buildings, and
1 43 equipment used in the production of such energy. "Net
1 44 capacity factor" means net actual generation divided
1 45 by the product of net maximum capacity times the
1 46 number of hours the unit was in the active state
1 47 during the assessment year. Upon commissioning, a
1 48 unit is in the active state until it is de-
1 49 commissioned. "Net actual generation" means net
1 50 electrical megawatt hours produced by the unit during
2 1 the preceding assessment year. "Net maximum capacity"
2 2 means the capacity the unit can sustain over a
2 3 specified period when not restricted by ambient
2 4 conditions or equipment deratings, minus the losses
2 5 associated with station service or auxiliary loads.
2 6 b. The net acquisition cost of property acquired
2 7 before January 1, 1995, which was owned or used by a
2 8 related person shall be the net acquisition cost of
2 9 the transferor of the property.
2 10 c. "Related person" means a person who owns or
2 11 controls the taxpayer's business and another business
2 12 entity from which property is acquired or leased or to
2 13 which property is sold or leased. Business entities
2 14 are owned or controlled by the same person if the same
2 15 person directly or indirectly owns or controls fifty
2 16 percent or more of the assets or any class of stock or
2 17 who directly or indirectly has an interest of fifty
2 18 percent or more in the ownership or profits.
2 19 d. "Net acquisition cost" means the acquired cost
2 20 of the property, including all foundations and
2 21 installation cost less any excess cost adjustment.
2 22 3. Property assessed pursuant to this section
2 23 shall not be eligible to receive a partial exemption
2 24 under sections 427B.1 to 427B.6.
2 25 4. The taxpayer's valuation of property defined in
2 26 section 427A.1, subsection 1, paragraphs "e" and "j",
2 27 and located in an urban renewal area for which an
2 28 urban renewal plan provides for the division of taxes
2 29 as provided in section 403.19 to pay the principal and
2 30 interest on loans, advances, bonds issued under the
2 31 authority of section 403.9, subsection 1, or
2 32 indebtedness incurred by a city or county to finance
2 33 an urban renewal project within the urban renewal
2 34 area, if such loans, advances, or bonds were issued or
2 35 indebtedness incurred, on or after January 1, 1982,
2 36 and on or before June 30, 1995, shall be limited to
2 37 thirty percent of the net acquisition cost of the
2 38 property. Such property located in an urban renewal
2 39 area shall not be valued pursuant to subsection 1
2 40 until the assessment year following the calendar year
2 41 in which the obligations created by any loans,
2 42 advances, bonds, or indebtedness payable from the
2 43 division of taxes as provided in section 403.19 have
2 44 been retired. The taxpayer's valuation for such
2 45 property shall then be the valuation specified in
2 46 subsection 1 for the applicable assessment year. If
2 47 the loans, advances, or bonds issued, or indebtedness
2 48 incurred between January 1, 1982, and June 30, 1995,
2 49 are refinanced or refunded after June 30, 1995, the
2 50 valuation of such property shall then be the valuation
3 1 specified in subsection 1 for the applicable
3 2 assessment year beginning with the assessment year
3 3 following the calendar year in which any of those
3 4 loans, advances, bonds, or other indebtedness are
3 5 refinanced or refunded after June 30, 1995.
3 6 5. For the purpose of dividing taxes under section
3 7 260E.4 or 260F.4, the employer's or business's
3 8 valuation of property defined in section 427A.1,
3 9 subsection 1, paragraphs "e" and "j", and used to fund
3 10 a new jobs training project which project's first
3 11 written agreement providing for a division of taxes as
3 12 provided in section 403.19, is approved on or before
3 13 June 30, 1995, shall be limited to thirty percent of
3 14 the net acquisition cost of the property. An
3 15 employer's or business's taxable property used to fund
3 16 a new jobs training project shall not be valued
3 17 pursuant to subsection 1 until the assessment year
3 18 following the calendar year in which the certificates
3 19 or other funding obligations have been retired or
3 20 escrowed. The taxpayer's valuation for such property
3 21 shall then be the valuation specified in subsection 1
3 22 for the applicable assessment year. If the
3 23 certificates issued, or other funding obligations
3 24 incurred, between January 1, 1982, and June 30, 1995,
3 25 are refinanced or refunded after June 30, 1995, the
3 26 valuation of such property shall then be the valuation
3 27 specified in subsection 1 for the applicable
3 28 assessment year beginning with the assessment year
3 29 following the calendar year in which those
3 30 certificates or other funding obligations are
3 31 refinanced or refunded after June 30, 1995.
3 32 Sec. . NEW SECTION. 427B.18 ASSESSOR AND
3 33 COUNTY AUDITOR DUTIES.
3 34 1. On or before July 1 of each year, the assessor
3 35 shall determine the taxpayer's valuation of the
3 36 property specified in section 427B.17 for that year
3 37 and the valuation of the property if the property were
3 38 valued, for assessment purposes, at thirty percent of
3 39 net acquisition cost and shall report the valuations
3 40 to the county auditor.
3 41 2. On or before July 1, 1996, and on or before
3 42 July 1 of each subsequent year, the county auditor
3 43 shall prepare a statement listing for each taxing
3 44 district in the county:
3 45 a. Beginning with the assessment year beginning
3 46 January 1, 1995, the difference between the assessed
3 47 valuation of property defined in section 427A.1,
3 48 subsection 1, paragraphs "e" and "j", and assessed
3 49 pursuant to section 427B.17 and the valuation of the
3 50 property if the property were valued, for assessment
4 1 purposes, at thirty percent of net acquisition cost.
4 2 b. The tax levy rate for each taxing district
4 3 levied against assessments made as of January 1 of the
4 4 previous year.
4 5 c. The industrial machinery, equipment and
4 6 computers tax replacement claim for each taxing
4 7 district, which is equal to the amount determined
4 8 pursuant to paragraph "a", multiplied by the tax rate
4 9 specified in paragraph "b".
4 10 3. The county auditor shall certify and forward
4 11 one copy of the statement to the department of revenue
4 12 and finance not later than July 1 of each year.
4 13 Sec. . NEW SECTION. 427B.19 REPLACEMENT.
4 14 Each county treasurer shall be paid an amount equal
4 15 to the following percentages of the industrial
4 16 machinery, equipment and computers tax replacement
4 17 claim for that county determined pursuant to section
4 18 427B.18, subsection 2:
4 19 1. For the fiscal year beginning July 1, 1996,
4 20 ninety percent.
4 21 2. For the fiscal year beginning July 1, 1997,
4 22 seventy-five percent.
4 23 3. For the fiscal year beginning July 1, 1998,
4 24 sixty percent.
4 25 4. For the fiscal year beginning July 1, 1999,
4 26 forty-five percent.
4 27 5. For the fiscal year beginning July 1, 2000,
4 28 thirty percent.
4 29 6. For the fiscal year beginning July 1, 2001,
4 30 twenty percent.
4 31 7. For the fiscal year beginning July 1, 2002,
4 32 twenty percent.
4 33 8. For the fiscal year beginning July 1, 2003,
4 34 twenty percent.
4 35 9. For the fiscal year beginning July 1, 2004,
4 36 fifteen percent.
4 37 10. For the fiscal year beginning July 1, 2005,
4 38 ten percent.
4 39 Sec. . NEW SECTION. 427B.19A FUND CREATED.
4 40 1. The industrial machinery, equipment and
4 41 computers property tax replacement fund is created.
4 42 There is appropriated annually from the general fund
4 43 of the state to the department of revenue and finance
4 44 to be credited to the industrial machinery, equipment
4 45 and computers property tax replacement fund, the
4 46 amounts specified in section 427B.19B.
4 47 2. Each county treasurer shall be paid from the
4 48 fund created in this section the amount calculated
4 49 pursuant to section 427B.19. The payment shall be
4 50 made in two equal installments on or before September
5 1 30 and March 30 of each year. The county treasurer
5 2 shall apportion the payment in the manner provided in
5 3 section 445.57.
5 4 3. If an amount appropriated in section 427B.19B
5 5 for a fiscal year is insufficient to pay all claims
5 6 according to the replacement schedule in section
5 7 427B.19, the director shall prorate the disbursements
5 8 from the fund to the county treasurers and shall
5 9 notify the county auditors of the pro rata percentage
5 10 on or before August 1. If an amount appropriated in
5 11 section 427B.19B for a fiscal year is in excess of the
5 12 amount necessary to pay all claims according to the
5 13 replacement schedule in section 427B.19, the director
5 14 shall prorate the disbursements from the fund to the
5 15 county treasurers, notwithstanding the amount
5 16 calculated pursuant to section 427B.19, and shall
5 17 notify the county auditors of the pro rata percentage
5 18 on or before August 1.
5 19 4. The replacement amount paid to each school
5 20 district shall be regarded as property tax for the
5 21 purposes of the school foundation property tax levy in
5 22 section 257.3 and the additional property tax levy in
5 23 section 257.4. The department of management shall
5 24 annually make the adjustments necessary to implement
5 25 this subsection.
5 26 Sec. . NEW SECTION. 427B.19B APPROPRIATION.
5 27 There is appropriated in each of the following
5 28 fiscal years from the general fund of the state to the
5 29 industrial machinery, equipment and computers property
5 30 tax replacement fund the following amounts:
5 31 1. For the fiscal year beginning July 1, 1996,
5 32 eight million, one hundred thousand dollars.
5 33 2. For the fiscal year beginning July 1, 1997,
5 34 fifteen million, two hundred thousand dollars.
5 35 3. For the fiscal year beginning July 1, 1998,
5 36 twenty-one million, one hundred thousand dollars.
5 37 4. For the fiscal year beginning July 1, 1999,
5 38 twenty-three million, four hundred thousand dollars.
5 39 5. For the fiscal year beginning July 1, 2000,
5 40 twenty-one million, one hundred thousand dollars.
5 41 6. For the fiscal year beginning July 1, 2001,
5 42 eighteen million, one hundred thousand dollars.
5 43 7. For the fiscal year beginning July 1, 2002,
5 44 twenty-four million dollars.
5 45 8. For the fiscal year beginning July 1, 2003,
5 46 twenty-five million, six hundred thousand dollars.
5 47 9. For the fiscal year beginning July 1, 2004,
5 48 twenty million, four hundred thousand dollars.
5 49 10. For the fiscal year beginning July 1, 2005,
5 50 fourteen million, five hundred thousand dollars.
6 1 Sec. . NEW SECTION. 427B.19C PHASEOUT OF TAX.
6 2 Effective on July 1, 2002, all property taxes on
6 3 property defined in section 427A.1, subsection 1,
6 4 paragraphs "e" and "j", are repealed. For assessment
6 5 years beginning on or after January 1, 2005, such
6 6 property shall not be listed or assessed. This
6 7 section shall prevail over all inconsistent statutes.
6 8 Sec. . NEW SECTION. 427B.19D GUARANTEE OF
6 9 STATE REPLACEMENT FUNDS.
6 10 If for any reason an appropriation specified in
6 11 section 427B.19B is not made or the appropriation made
6 12 is less than that specified in section 427B.19B for
6 13 the applicable fiscal year, the director of revenue
6 14 and finance shall compute for each county the
6 15 difference between the total of all replacement claims
6 16 for taxing districts within the county and the amount
6 17 paid to the county treasurer for disbursement to the
6 18 taxing districts in the county. The department shall
6 19 divide that difference by the consolidated tax levy
6 20 rate in each county computed for the fiscal year in
6 21 which the specified appropriation should have been
6 22 made and shall certify the amount of taxable value
6 23 necessary to raise the difference at that tax rate.
6 24 The department shall notify the local assessor of such
6 25 amount of taxable value. The assessor, for the
6 26 assessment year beginning January 1 preceding the
6 27 fiscal year for which the specified appropriation was
6 28 not made, shall reassess all taxable property
6 29 described in section 427B.17 in the county at a
6 30 percentage of net acquisition cost which will yield
6 31 such taxable value and the property shall be assessed
6 32 and taxed in such manner for taxes due and payable in
6 33 the following fiscal year in addition to being
6 34 assessed and taxed in the applicable manner under
6 35 section 427B.17. Property tax dollar amounts
6 36 certified pursuant to this section shall not be
6 37 considered property tax dollars certified for purposes
6 38 of the property tax limitation in chapter 444.
6 39 Sec. . NEW SECTION. 427B.19E INDUSTRIAL
6 40 MACHINERY, EQUIPMENT AND COMPUTERS RELIEF FUND.
6 41 1. The industrial machinery, equipment and
6 42 computers relief fund is created. There is
6 43 appropriated annually from the general fund of the
6 44 state to the department of revenue and finance to be
6 45 credited to the relief fund, the following amounts:
6 46 a. For the fiscal year beginning July 1, 1996, one
6 47 million, nine hundred thousand dollars.
6 48 b. For the fiscal year beginning July 1, 1997, one
6 49 million, eight hundred thousand dollars.
6 50 c. For the fiscal year beginning July 1, 1998, one
7 1 million, nine hundred thousand dollars.
7 2 Moneys in the fund at the end of a fiscal year
7 3 shall not revert to the general fund of the state,
7 4 notwithstanding section 8.33.
7 5 2. a. The purpose of the industrial machinery,
7 6 equipment and computers relief fund is to provide
7 7 funds to those taxing districts in which an increase
7 8 in property tax revenue has not been realized as a
7 9 result of the elimination of the property tax on
7 10 property assessed pursuant to section 427B.17.
7 11 Beginning with the fiscal year beginning July 1, 1996,
7 12 a taxing district may apply for funds under this
7 13 section by filing an application with the director of
7 14 the department of management not later than March 1
7 15 preceding the fiscal year in which the funds will be
7 16 distributed. The state appeal board shall approve,
7 17 disapprove, or reduce the amount of funds requested by
7 18 the taxing district.
7 19 b. On forms provided by the department of
7 20 management, the taxing district shall request an
7 21 amount not exceeding the product of the decrease in
7 22 assessed valuation for the fiscal year for which the
7 23 application is filed compared to the assessed
7 24 valuation in the previous fiscal year, as determined
7 25 pursuant to subsection 3, and the property tax rate
7 26 applied in the previous fiscal year, less any property
7 27 tax replacement funds received pursuant to section
7 28 427B.19A in the previous fiscal year. The taxing
7 29 district shall also submit with the application the
7 30 district's plan to improve its future budget position.
7 31 c. Claims approved by the state appeal board shall
7 32 be paid to the taxing district by October 1 following
7 33 submission of the application for funds.
7 34 3. To be eligible to receive funds under this
7 35 section, a taxing district must show that there has
7 36 been a decrease of more than three percent in the
7 37 assessed valuation for taxes payable in the fiscal
7 38 year for which the application is submitted compared
7 39 to the assessed valuation for taxes payable in the
7 40 previous fiscal year, which decrease is attributable
7 41 to the elimination of the property tax on industrial
7 42 machinery, equipment and computers pursuant to section
7 43 427B.17. The taxing district, to be eligible for
7 44 funds, must also show that the district has exhausted
7 45 all other lawful alternatives for improving the
7 46 district's budget position.
7 47 4. If the amount appropriated in this section is
7 48 insufficient to pay all applications approved, the
7 49 director of revenue and finance shall prorate the
7 50 disbursements from the relief fund and shall report
8 1 the amount of the shortfall to the director of the
8 2 department of management. By January 1 of the
8 3 following year, the director of the department of
8 4 management shall submit to the general assembly a plan
8 5 for the funding of approved applications that were not
8 6 fully funded in that fiscal year.
8 7 5. Amounts received pursuant to this section shall
8 8 not be considered property tax dollars certified for
8 9 purposes of the property tax limitation in chapter
8 10 444.
8 11 6. The department of revenue and finance and the
8 12 department of management shall adopt rules necessary
8 13 to implement this section."
8 14 #2. Title page, line 2, by inserting after the
8 15 word "reimbursement" the following: "and exemption".
8 16 #3. By renumbering as necessary.
8 17
8 18
8 19
8 20 ALLEN BORLAUG
8 21 BRAD BANKS
8 22 ANDY McKEAN
8 23 MARY A. LUNDBY
8 24 SF 466.303 76
8 25 sc/cf
Text: S03350 Text: S03352 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
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