Text: HSB00211                          Text: HSB00213
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 212

Bill Text

PAG LIN
  1  1    Section 1.  Section 15.334, Code 1997, is amended to read
  1  2 as follows:
  1  3    15.334  EXEMPTION FROM TAXATION FOR MACHINERY, EQUIPMENT,
  1  4 AND COMPUTERS.
  1  5    An eligible business may claim as exempt from taxation all
  1  6 or a portion of the value of property, directly related to new
  1  7 jobs created by the location or expansion of an eligible
  1  8 business under the program, defined in section 427A.1,
  1  9 subsection 1, paragraphs "e", "h", "i", and "j", used by the
  1 10 eligible business.  In order to be eligible for this
  1 11 exemption, the property shall be acquired or initially leased
  1 12 by the eligible business or relocated by the eligible business
  1 13 to the facility from a facility outside the state of Iowa.
  1 14 The duration of the exemption shall not exceed twenty years.
  1 15    Sec. 2.  Section 15A.9, subsection 5, paragraph a, Code
  1 16 1997, is amended to read as follows:
  1 17    a.  All property, as defined in section 427A.1, subsection
  1 18 1, paragraphs "e", "h", "i", and "j", Code 1993, used by the
  1 19 primary business or a supporting business and located within
  1 20 the zone, shall be exempt from property taxation for a period
  1 21 of twenty years beginning with the year it is first assessed
  1 22 for taxation.  In order to be eligible for this exemption, the
  1 23 property shall be acquired or leased by the primary business
  1 24 or a supporting business or relocated by the primary business
  1 25 or a supporting business to the zone from outside the state
  1 26 prior to project completion.
  1 27    Sec. 3.  Section 422.45, subsection 27, paragraph b,
  1 28 unnumbered paragraph 3, Code 1997, is amended by striking the
  1 29 paragraph.
  1 30    Sec. 4.  Section 427A.1, subsection 1, paragraph h, Code
  1 31 1997, is amended to read as follows:
  1 32    h.  Property Machinery and equipment assessed by the
  1 33 department of revenue and finance pursuant to sections 428.24
  1 34 to through 428.29, or and chapters 433, 434, and 436 to, 437,
  1 35 and 438.
  2  1    Sec. 5.  Section 427A.1, subsection 1, paragraph i, Code
  2  2 1997, is amended to read as follows:
  2  3    i.  Property Machinery and equipment used but not owned by
  2  4 the persons whose property machinery and equipment is defined
  2  5 in paragraph "h" of this subsection, which would be assessed
  2  6 by the department of revenue and finance if the persons owned
  2  7 the property machinery and equipment.  However, this paragraph
  2  8 does not change the manner of assessment or the authority
  2  9 entitled to make the assessment.
  2 10    Sec. 6.  Section 427B.17, subsection 5, Code 1997, is
  2 11 amended to read as follows:
  2 12    5.  This section shall not apply to property assessed by
  2 13 the department of revenue and finance pursuant to sections
  2 14 428.24 to 428.29, or chapters 433, 434, and 436 to 438, and
  2 15 such property shall not receive the benefits of this section.
  2 16 Any electric generating power plant which operated during the
  2 17 preceding assessment year at a net capacity factor of twenty
  2 18 percent or less shall receive the benefits of subsections 2
  2 19 and 3.  Any electric power generating plant which operated
  2 20 during the preceding assessment year at a net capacity factor
  2 21 of more than twenty percent, shall not receive the benefits of
  2 22 this section or in the manner provided for in subsections 2
  2 23 and 7.  Such electric generating plants shall not receive the
  2 24 benefits of sections 15.332 and 15.334.  For purposes of this
  2 25 section, "electric power generating plant" means any name
  2 26 plate rated electric power generating plant, in which electric
  2 27 energy is produced from other forms of energy, including all
  2 28 taxable land, buildings, and equipment used in the production
  2 29 of such energy.  "Net capacity factor" means net actual
  2 30 generation divided by the product of net maximum capacity
  2 31 times the number of hours the unit was in the active state
  2 32 during the assessment year.  Upon commissioning, a unit is in
  2 33 the active state until it is decommissioned.  "Net actual
  2 34 generation" means net electrical megawatt hours produced by
  2 35 the unit during the preceding assessment year.  "Net maximum
  3  1 capacity" means the capacity the unit can sustain over a
  3  2 specified period when not restricted by ambient conditions or
  3  3 equipment deratings, minus the losses associated with station
  3  4 service or auxiliary loads.
  3  5    Sec. 7.  Section 427B.17, Code 1997, is amended by adding
  3  6 the following new subsection:
  3  7    NEW SUBSECTION.  7.  a.  Machinery and equipment defined in
  3  8 section 427A.1, subsection 1, paragraphs "h" and "i", shall be
  3  9 assessed by the department of revenue and finance pursuant to
  3 10 sections 428.24 through 428.29, and chapters 433, 434, 436,
  3 11 437, and 438.  This assessment shall constitute the actual
  3 12 value of the taxable real and personal property of the
  3 13 utility, and shall not include any assessment related to
  3 14 regulatory assets or regulatory liabilities.
  3 15    b.  The director shall determine the valuation of each
  3 16 utility, as certified to the county auditors prior to July 1,
  3 17 1997.
  3 18    c.  The director shall subtract from the amount certified
  3 19 to county auditors prior to July 1, 1997, the actual value of
  3 20 the property as determined by the director pursuant to this
  3 21 section.  The difference between these two valuations shall be
  3 22 multiplied by the following percentages which amount shall be
  3 23 certified to the local taxing jurisdictions:
  3 24    (1)  For the assessment year beginning January 1, 1996,
  3 25 76.66 percent.
  3 26    (2)  For the assessment year beginning January 1, 1997,
  3 27 53.33 percent.
  3 28    (3)  For the assessment year beginning January 1, 1998,
  3 29 30.00 percent.
  3 30    (4)  For the assessment year beginning January 1, 1999,
  3 31 22.00 percent.
  3 32    (5)  For the assessment year beginning January 1, 2000,
  3 33 14.00 percent.
  3 34    (6)  For the assessment year beginning January 1, 2001,
  3 35 6.00 percent.
  4  1    (7)  For the assessment year beginning January 1, 2002, and
  4  2 succeeding assessment years, 0.00 percent.
  4  3    Sec. 8.  Section 428.24, Code 1997, is amended by striking
  4  4 the section and inserting in lieu thereof the following:
  4  5    428.24  PUBLIC UTILITY PLANTS.
  4  6    The real and personal property belonging to individuals or
  4  7 corporations operating waterworks, gasworks, or pipelines,
  4  8 furnishing electric light or power, operating railways by
  4  9 cable or electricity, or operating elevated street railways,
  4 10 shall be valued by the director of revenue and finance at its
  4 11 actual value, in the same manner as all other property
  4 12 assessed by the local assessor under chapters 427, 427A, 427B,
  4 13 428, and 441.
  4 14    Sec. 9.  Section 433.4, Code 1997, is amended by striking
  4 15 the section and inserting in lieu thereof the following:
  4 16    433.4  BASIS OF VALUATION AND ASSESSMENT.
  4 17    The real and personal property shall be valued by the
  4 18 director of revenue and finance at its actual value, in the
  4 19 same manner as all other property assessed by the local
  4 20 assessor under chapters 427, 427A, 427B, 428, and 441.
  4 21    Sec. 10.  Section 434.15, Code 1997, is amended by striking
  4 22 the section and inserting in lieu thereof the following:
  4 23    434.15  BASIS OF VALUATION AND ASSESSMENT.
  4 24    The real and personal property shall be valued by the
  4 25 director of revenue and finance at its actual value, in the
  4 26 same manner as all other property assessed by the local
  4 27 assessor under chapters 427, 427A, 427B, 428, and 441.
  4 28    Sec. 11.  Section 436.7, Code 1997, is amended by striking
  4 29 the section and inserting in lieu thereof the following:
  4 30    436.7  BASIS OF VALUATION AND ASSESSMENT.
  4 31    The real and personal property shall be valued by the
  4 32 director of revenue and finance at its actual value, in the
  4 33 same manner as all other property assessed by the local
  4 34 assessor under chapters 427, 427A, 427B, 428, and 441.
  4 35    Sec. 12.  Section 437.6, Code 1997, is amended by striking
  5  1 the section and inserting in lieu thereof the following:
  5  2    437.6  BASIS OF VALUATION AND ASSESSMENT.
  5  3    The real and personal property shall be valued by the
  5  4 director of revenue and finance at its actual value, in the
  5  5 same manner as all other property assessed by the local
  5  6 assessor under chapters 427, 427A, 427B, 428, and 441.
  5  7    Sec. 13.  Section 437.12, Code 1997, is amended to read as
  5  8 follows:
  5  9    437.12  ASSESSMENT EXCLUSIVE.
  5 10    Every transmission line or part of a transmission line, of
  5 11 which the director of revenue and finance is required by this
  5 12 chapter to find the value, shall be exempt from other
  5 13 assessment or taxation either under sections 428.24 to 428.26
  5 14 and 428.25, or under any other law of this state except as
  5 15 provided in this chapter.
  5 16    Sec. 14.  Section 437.13, Code 1997, is amended to read as
  5 17 follows:
  5 18    437.13  LOCAL ASSESSMENT.
  5 19    All lands, buildings, machinery, poles, towers, wires,
  5 20 station and substation equipment, and other construction owned
  5 21 or operated by any company referred to in section 437.2, and
  5 22 where this property is located within any city within this
  5 23 state, shall be listed and assessed for taxation in the same
  5 24 manner as provided in sections 428.24, 428.25, and 428.29, for
  5 25 the listing and assessment of that part of the lands,
  5 26 buildings, machinery, tracks, poles, and wires within the
  5 27 limits of any city belonging to individuals or corporations
  5 28 furnishing electric light or power, and where this property,
  5 29 except the capital stock, is situated partly within and partly
  5 30 without the limits of a city.  All personal property of every
  5 31 company owning or operating any transmission line referred to
  5 32 in section 437.2, used or purchased by it for the purpose of
  5 33 the transmission line, shall be listed and assessed in the
  5 34 assessment district where usually kept and housed and under
  5 35 sections 428.26 and section 428.29.
  6  1    Sec. 15.  Section 438.13, Code 1997, is amended by striking
  6  2 the section and inserting in lieu thereof the following:
  6  3    438.13  BASIS OF VALUATION AND ASSESSMENT.
  6  4    The real and personal property shall be valued by the
  6  5 director of revenue and finance at its actual value, in the
  6  6 same manner as all other property assessed by the local
  6  7 assessor under chapters 427, 427A, 427B, 428, and 441.
  6  8    Sec. 16.  Section 5 of this Act, amending section 427B.17,
  6  9 subsection 5, applies retroactively to assessment years
  6 10 beginning on or after January 1, 1996.
  6 11    Sec. 17.  Section 428.26, Code 1997, is repealed.  
  6 12                           EXPLANATION
  6 13    This bill provides a schedule for the phaseout of property
  6 14 taxes on machinery and equipment leased or purchased by
  6 15 utility companies, including certain electric generating
  6 16 plants, and first assessed by the department of revenue and
  6 17 finance before January 1, 1995.  The bill also provides that
  6 18 such property first assessed for taxation on or after January
  6 19 1, 1995, shall be exempt from property taxation, effective
  6 20 with the 1996 assessment year.
  6 21    Finally, the bill exempts from the state sales tax
  6 22 machinery and equipment leased or purchased by utility
  6 23 companies participating in the new jobs and income program or
  6 24 located in quality jobs enterprise zone.  
  6 25 LSB 1894HC 77
  6 26 sc/sc/14
     

Text: HSB00211                          Text: HSB00213
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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