Text: HF02545 Text: HF02547 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 421.10, Code 1999, is amended to read 1 2 as follows: 1 3 421.10 APPEAL PERIOD – APPLICABILITY. 1 4 The appeal period for revision of assessment of tax, 1 5 interest, and penalties set out under section 422.28, 422.54, 1 6 437A.9, 437A.22, 452A.64, 453A.29, or 453A.46 applies to 1 7 appeals to notices from the department denying changes in 1 8 filing methods, denying refund claims, and denying portions of 1 9 refund claims for the tax covered by that section, and notices 1 10 of any department action directed to a specific taxpayer, 1 11 other than licensing, which involves a calculation. 1 12 Sec. 2. Section 437A.3, subsection 1, unnumbered paragraph 1 13 1, Code Supplement 1999, is amended to read as follows: 1 14 "Assessed value" means the base year assessed value, as 1 15 adjusted by section 437A.19, subsection 2. "Base year 1 16 assessed value", for a taxpayer other than an electric 1 17 company, natural gas company, or electric cooperative, means 1 18 the value attributable to property identified in section 1 19 427A.1, subsection 1, paragraph "h", certified by the 1 20 department of revenue and finance to the county auditors for 1 21 the assessment date of January 1, 1997, and the value 1 22 attributable to property identified in section 427A.1 and 1 23 section 427B.17, subsection 5, as certified by the local 1 24 assessors to the county auditors for the assessment date of 1 25 January 1, 1997, provided, that for a taxpayer subject to 1 26 section 437A.17A, such value shall be the value certified by 1 27 the department of revenue and finance and local assessors to 1 28 the county auditors for the assessment date of January 1, 1 29 1998. 1 30 Sec. 3. Section 437A.5, subsection 7, unnumbered paragraph 1 31 2, Code 1999, is amended to read as follows: 1 32Section 437A.5, subsectionSubsection 2,does not apply to 1 33 natural gas consumed by a person, other than an electric 1 34 company, natural gas company, electric cooperative, or 1 35 municipal utility, acquired by means of facilities owned by or 2 1 leased to such person on January 1, 1999, which were 2 2 physically attached to pipelines that are not permitted 2 3 pursuant to chapter 479 and used by such person for the 2 4 purpose of bypassing the local natural gas company or 2 5 municipal utility. 2 6 Sec. 4. Section 437A.5, subsection 7, Code 1999, is 2 7 amended by adding the following new unnumbered paragraph: 2 8 NEW UNNUMBERED PARAGRAPH. Subsection 1 does not apply to 2 9 natural gas which is delivered, by a pipeline that is not 2 10 permitted pursuant to chapter 479, into a facility owned by or 2 11 leased to a person, other than an electric company, natural 2 12 gas company, electric cooperative, or municipal utility, if 2 13 the person who consumes the gas uses the gas for the purpose 2 14 of bypassing the local natural gas company or municipal 2 15 utility, regardless of whether such facility existed on 2 16 January 1, 1999. 2 17 Sec. 5. Section 437A.6, subsection 2, Code 1999, is 2 18 amended to read as follows: 2 19 2. For purposes of this section, if a generation facility 2 20 is jointly owned or leased,the taxpayer shall computethe 2 21 number of kilowatt-hours of electricity subject to the 2 22 replacement generation taxby multiplying the taxpayer's2 23percentage interest in the jointly held generation facility by2 24the number of kilowatt-hours of electricity generatedshall be 2 25 the number of kilowatt-hours of electricity generated and 2 26 dispatched by the jointly held generation facility to the 2 27 account of the taxpayer. 2 28 Sec. 6. Section 437A.6, Code 1999, is amended by adding 2 29 the following new subsection: 2 30 NEW SUBSECTION. 3. For purposes of this section, the 2 31 number of kilowatt-hours generated by a generation facility 2 32 shall exclude any kilowatt-hours used to operate that 2 33 generation facility. 2 34 Sec. 7. Section 437A.8, subsection 4, Code 1999, is 2 35 amended by adding the following new unnumbered paragraphs: 3 1 NEW UNNUMBERED PARAGRAPH. If a distribution electric 3 2 cooperative member or a municipal utility purchasing member 3 3 subject to section 437A.15, subsection 3, paragraph "b", does 3 4 not make timely payment of the correct amount of replacement 3 5 tax to the generation and transmission electric cooperative 3 6 and the generation and transmission electric cooperative so 3 7 notifies the director and the appropriate county treasurer 3 8 within fifteen days after August 1, and timely remits to the 3 9 county treasurer the amounts of replacement tax received by 3 10 the generation and transmission elective cooperative in 3 11 accordance with section 437A.15, subsection 3, paragraph "b", 3 12 the generation and transmission electric cooperative shall not 3 13 be liable for the unpaid replacement tax due from the 3 14 distribution electric cooperative member or municipal utility 3 15 purchasing member. The generation and transmission electric 3 16 cooperative shall also not be liable for a special utility 3 17 property tax levy, if any, and shall not be entitled to a tax 3 18 credit, if any, attributable to the unpaid replacement tax. 3 19 The county treasurer and the director shall enforce payment of 3 20 the replacement tax against the appropriate distribution 3 21 electric cooperative member or municipal utility purchasing 3 22 member pursuant to sections 437A.9 through 437A.13. The 3 23 county treasurer shall enforce payment of the special utility 3 24 property tax levy, if any, against the appropriate 3 25 distribution electric cooperative member or municipal utility 3 26 purchasing member. 3 27 NEW UNNUMBERED PARAGRAPH. If a generation and transmission 3 28 electric cooperative receives some, but not all, of the 3 29 required payment from a distribution electric cooperative 3 30 member or a municipal utility purchasing member, the 3 31 generation and transmission electric cooperative shall notify 3 32 the director within fifteen days after August 1. The director 3 33 shall then notify the generation and transmission electric 3 34 cooperative of the paid amount to be remitted to the 3 35 appropriate county treasurer and shall also notify the county 4 1 treasurer. If the generation and transmission electric 4 2 cooperative timely notifies the director and timely remits to 4 3 the county treasurer the amounts of replacement tax, as 4 4 determined by the director, the generation and transmission 4 5 electric cooperative shall not be liable for that unpaid 4 6 replacement tax due from the distribution electric cooperative 4 7 member or municipal utility purchasing member. The generation 4 8 and transmission electric cooperative shall also not be liable 4 9 for a special utility property tax levy, if any, and shall not 4 10 be entitled to a tax credit, if any, attributable to the 4 11 unpaid replacement tax. The county treasurer and the director 4 12 shall enforce payment of the replacement tax against the 4 13 appropriate distribution electric cooperative member or 4 14 municipal utility purchasing member pursuant to sections 4 15 437A.9 through 437A.13. The county treasurer shall enforce 4 16 payment of the special utility property tax levy, if any, 4 17 against the appropriate distribution electric cooperative 4 18 member or municipal utility purchasing member. 4 19 NEW UNNUMBERED PARAGRAPH. If a generation and transmission 4 20 electric cooperative, after notice, does not timely pay the 4 21 correct amount of replacement tax or special utility property 4 22 tax levy attributable to the excess property tax liability to 4 23 the appropriate county treasurer, after receiving the required 4 24 payment from the distribution electric cooperative member or 4 25 municipal utility purchasing member, such replacement tax 4 26 shall be enforced solely against the generation and 4 27 transmission electric cooperative under sections 437A.9 4 28 through 437A.13, and shall not be enforced against the paying 4 29 distribution electric cooperative member or municipal utility 4 30 purchasing member, and the special utility property tax levy 4 31 shall be enforced solely against the generation and 4 32 transmission electric cooperative. 4 33 Sec. 8. Section 437A.11, unnumbered paragraph 6, Code 4 34 1999, is amended to read as follows: 4 35 Section 445.3 applies with respect to the replacement taxes 5 1 and special utility property tax levies and penalties and 5 2 interest imposed by this chapter, except for the provisions 5 3 limiting the commencement of actions. In addition, at the 5 4 county treasurer's discretion, chapters 446, 447, and 448 5 5 apply in the enforcement of the special utility property tax 5 6 levies, but any tax deed issued shall not extinguish a tax 5 7 lien or judgment lien for replacement taxes that has attached 5 8 to the property. 5 9 Sec. 9. Section 437A.14, subsection 1, paragraph b, Code 5 10 Supplement 1999, is amended by adding the following new 5 11 unnumbered paragraph: 5 12 NEW UNNUMBERED PARAGRAPH. If an amount of overpaid 5 13 replacement tax is attributable to payment of excess property 5 14 tax liability as described in section 437A.15, subsection 3, 5 15 paragraph "b", a claim for refund or credit may only be made 5 16 by, and a refund or credit shall only be made to, the person 5 17 who made such excess payment. Such claim shall not be made by 5 18 the person who collected the tax from another person. 5 19 Sec. 10. Section 437A.15, subsection 3, Code Supplement 5 20 1999, is amended to read as follows: 5 21 3. a. All replacement taxes owed by a taxpayer shall be 5 22 allocated among the local taxing districts in which such 5 23 taxpayer's property is located in accordance with a general 5 24 allocation formula determined by the department of management 5 25 on the basis of general property tax equivalents. General 5 26 property tax equivalents shall be determined by applying the 5 27 levy rates reported by each local taxing district to the 5 28 department of management on or before June 30 following a tax 5 29 year to the assessed value of taxpayer property allocated to 5 30 each such local taxing district as adjusted and reported to 5 31 the department of management in such tax year by the director 5 32 pursuant to section 437A.19, subsection 2. The general 5 33 allocation formula for a tax year shall allocate to each local 5 34 taxing district that portion of the replacement taxes owed by 5 35 each taxpayer which bears the same ratio as such taxpayer's 6 1 general property tax equivalents for each local taxing 6 2 district bears to such taxpayer's total general property tax 6 3 equivalents for all local taxing districts in Iowa. 6 4 b. Notwithstanding other provisions of this section, if 6 5 excess property tax liability has been assigned pursuant to 6 6 section 437A.4, subsection 3, paragraph "c", subparagraph (4), 6 7 and has not been removed, the allocation of electric delivery 6 8 replacement tax attributable to the excess property tax 6 9 liability shall be made by the director and the department of 6 10 management so as to allocate the electric delivery replacement 6 11 tax attributable to the excess property tax liability among 6 12 those local taxing districts in which the property associated 6 13 with the excess property tax liability is located. In order 6 14 to ensure that the electric delivery replacement tax 6 15 attributable to the excess property tax liability is paid to 6 16 the appropriate county treasurer for disposition to the local 6 17 taxing districts, each distribution electric cooperative 6 18 member and each municipal utility purchasing member subject to 6 19 section 437A.4, subsection 3, paragraph "c", subparagraph (4), 6 20 shall pay to the appropriate generation and transmission 6 21 electric cooperative the electric delivery replacement tax 6 22 attributable to the excess property tax liability by August 1. 6 23 The amount of electric delivery replacement tax attributable 6 24 to the excess property tax liability shall equal that 6 25 percentage of total electric delivery replacement tax 6 26 liability that the excess property tax liability bears to the 6 27 total property tax liability contained in the electric 6 28 delivery tax component. The generation and transmission 6 29 electric cooperative shall pay the electric delivery 6 30 replacement tax attributable to the excess property tax 6 31 liability to the appropriate county treasurer. 6 32 c. If paragraph "b" is applicable, on or before June 1, 6 33 the director shall notify each distribution electric 6 34 cooperative member, each municipal utility purchasing member, 6 35 and each generation and transmission electric cooperative of 7 1 the amount of electric delivery replacement tax to pay to the 7 2 generation and transmission electric cooperative. On or 7 3 before June 1, the director shall notify the generation and 7 4 transmission electric cooperative of the amount of replacement 7 5 tax liability attributable to the excess property tax 7 6 liability that is payable to each county treasurer. The 7 7 director shall determine the amount of any special utility 7 8 property tax levy or tax credit attributable to the excess 7 9 property tax liability which shall be reflected in the amount 7 10 required to be paid by each distribution electric cooperative 7 11 member and each municipal utility purchasing member to the 7 12 generation and transmission electric cooperative. 7 13 Sec. 11. Section 437A.15, subsection 4, unnumbered 7 14 paragraph 1, Code Supplement 1999, is amended to read as 7 15 follows: 7 16 On or before August 31 following tax years 1999, 2000, and 7 17 2001, each county treasurer shall compute a special utility 7 18 property tax levy or tax credit for each taxpayer for which a 7 19 replacement tax liability for each such tax year is reported 7 20 to the county treasurer pursuant to subsection 1, and shall 7 21 notify the taxpayer of the amount of such tax levy or tax 7 22 credit. The amount of the special utility property tax levy 7 23 or credit shall be determined for each taxpayer by the county 7 24 treasurer by comparing the taxpayer's total replacement tax 7 25 liability allocated to taxing districts in the county pursuant 7 26 to this section with the anticipated tax revenues from the 7 27 taxpayer for all taxing districts in the county. If the 7 28 taxpayer's total replacement tax liability allocated to taxing 7 29 districts in the county is less than the anticipated tax 7 30 revenues from the taxpayer for all taxing districts in the 7 31 county, the county treasurer shall levy a special utility 7 32 property tax equal to the shortfall which shall be added to 7 33 and collected with the replacement tax owed by the taxpayer to 7 34 the county treasurer for the tax year pursuant to section 7 35 437A.8, subsection 4. If the taxpayer's total replacement tax 8 1 liability allocated to taxing districts in the county exceeds 8 2 the anticipated tax revenues from the taxpayer for all taxing 8 3 districts in the county, the county treasurer shall issue a 8 4 credit to the taxpayer which shall be applied to reduce the 8 5 taxpayer's replacement tax liability to the county treasurer 8 6 for the tax year. If the taxpayer's total replacement tax 8 7 liability allocated to taxing districts in the county equals 8 8 the anticipated tax revenues from the taxpayer for all taxing 8 9 districts in the county, no levy or credit is required. 8 10 Replacement tax liability for purposes of this subsection 8 11 means replacement tax liability before credits allowed by 8 12 section 437A.8, subsection 7. A recalculation of a special 8 13 utility property tax levy or credit shall not be made as a 8 14 result of a subsequent recalculation of replacement tax 8 15 liability under section 437A.8, subsection 7, or adjustment to 8 16 assessed value under section 437A.19, subsection 2, paragraph 8 17 "f". "Anticipated tax revenues from a taxpayer" means the 8 18 product of the total levy rates imposed by the taxing 8 19 districts and the value of taxpayer property allocated to the 8 20 taxing districts and reported to the county auditor. Special 8 21 utility property tax levies and credits shall be treated as 8 22 replacement taxes for purposes of section 437A.11. If a 8 23 special utility property tax levy payment becomes delinquent, 8 24 the delinquent payment shall accrue interest and penalty in 8 25 the same manner and amount as the replacement tax under 8 26 section 437A.13. 8 27 Sec. 12. Section 437A.19, subsection 2, paragraph f, 8 28 unnumbered paragraph 3, Code Supplement 1999, is amended to 8 29 read as follows: 8 30 The director, on or before October 31, 1999, in the case of 8 31 January 1, 1999, assessed values, and on or before August 31 8 32 of each subsequent assessment year, shall report to the 8 33 department of management and to the auditor of each county the 8 34 adjusted assessed value of taxpayer property as of January 1 8 35 of such assessment year for each local taxing district, 9 1 provided that for a taxpayer whose base year as defined in 9 2 section 437A.3, subsection 1, changed from 1997 to 1998, the 9 3 director shall, before May 1, 2000, report to the department 9 4 of management and to the auditor of each county, the assessed 9 5 values as of January 1, 1999. For purposes of this 9 6 subsection, the assessed value of taxpayer property in each 9 7 local taxing district subject to adjustment under this section 9 8 by the director means the assessed value of such property as 9 9 of the preceding January 1 as determined and allocated among 9 10 the local taxing districts by the director. 9 11 Sec. 13. Section 437A.21, Code 1999, is amended by adding 9 12 the following new subsection: 9 13 NEW SUBSECTION. 6. Notwithstanding subsections 1 through 9 14 5, a taxpayer is not required to file a return under this 9 15 section or to remit any statewide property tax for any tax 9 16 year in which the taxpayer's statewide property tax liability 9 17 is one dollar or less. 9 18 Sec. 14. Section 443.2, unnumbered paragraph 2, Code 1999, 9 19 is amended to read as follows: 9 20 The county auditor shall list the aggregate actual value 9 21 and the aggregate taxable value of all taxable property within 9 22 the county and each political subdivision including property 9 23 subject to the statewide property tax imposed under section 9 24 437A.18 on the tax list in order that the actual value of the 9 25 taxable property within the county or a political subdivision 9 26 may be ascertained and shown by the tax list for the purpose 9 27 of computing the debt-incurring capacity of the county or 9 28 political subdivision. As used in this section, "actual 9 29 value" is the value determined under section 441.21, 9 30 subsections 1 to 3, prior to the reduction to a percentage of 9 31 actual value as otherwise provided in section 441.21. "Actual 9 32 value" of property subject to statewide property tax is the 9 33 assessed value under section 437A.18. 9 34 Sec. 15. Section 445.57, Code 1999, is amended by adding 9 35 the following new unnumbered paragraph: 10 1 NEW UNNUMBERED PARAGRAPH. The county treasurer shall 10 2 apportion all interest and penalties on the replacement taxes 10 3 and special utility property tax levies collected by the 10 4 county treasurer to the general fund. Replacement taxes 10 5 collected by the county treasurer shall be apportioned as set 10 6 forth in this section. 10 7 Sec. 16. RECOMPUTATION. The director of revenue and 10 8 finance shall recompute the electric replacement delivery tax 10 9 rate applicable to each electric competitive service area 10 10 under section 437A.4 in order to reflect the electric 10 11 generation tax component determined under section 437A.6, as 10 12 amended by this Act. If the recomputed electric replacement 10 13 delivery tax rate differs from the delivery tax rate published 10 14 in the Iowa administrative bulletin in 1999, the director 10 15 shall publish the recomputed tax rate in the Iowa 10 16 administrative bulletin within ninety days of the effective 10 17 date of this Act. 10 18 Sec. 17. RETROACTIVE APPLICABILITY. Sections 3, 4, 5, 6, 10 19 7, 9, and 10 of this Act, amending section 437A.5, subsection 10 20 7; section 437A.6; section 437A.8, subsection 4; section 10 21 437A.14, subsection 1; and section 437A.15, subsection 3, 10 22 respectively, apply retroactively to January 1, 1999, for tax 10 23 years beginning on and after that date. 10 24 Sec. 18. EFFECTIVE DATE. This Act, being deemed of 10 25 immediate importance, takes effect upon enactment. 10 26 EXPLANATION 10 27 This bill amends provisions relating to the replacement tax 10 28 imposed on the generation, transmission, and delivery, 10 29 consumption, and use of electricity and natural gas. 10 30 Code section 421.10 is amended to provide for a 60-day 10 31 period for an appeal of a denial of refund or portion of a 10 32 refund of replacement tax paid. 10 33 Code section 437A.3 is amended to provide that the "base 10 34 year assessed value" for a municipal utility subject to Code 10 35 section 437A.17A is the value certified by the department of 11 1 revenue and finance and local assessors to the county auditors 11 2 for the assessment date of January 1, 1998. Currently, such 11 3 value is the value certified by the department of revenue and 11 4 finance and local assessors to the county auditors for the 11 5 assessment date of January 1, 1997. A municipal utility 11 6 subject to Code section 437A.17A is one whose property tax 11 7 assessment for the 1998 assessment year was adjusted by the 11 8 department of revenue and finance to include depreciation and 11 9 whose property tax assessment for the 1997 assessment year did 11 10 not include depreciation in determining its assessment. 11 11 Code section 437A.5 is amended to exempt from the 11 12 replacement tax, natural gas delivered by a pipeline not 11 13 permitted under Code chapter 479 to a person other than an 11 14 electric company, natural gas company, electric cooperative, 11 15 or municipal utility, who consumes the gas for the purpose of 11 16 bypassing the local natural gas company or municipal utility. 11 17 Code section 437A.6 is amended to provide that a taxpayer 11 18 participating in a jointly owned or leased generation facility 11 19 is to pay replacement tax on the number of kilowatt-hours of 11 20 electricity generated and dispatched by such facility to the 11 21 account of the taxpayer. The Code section is also amended to 11 22 provide that the number of kilowatt-hours generated by a 11 23 generation facility excludes any kilowatt-hours used in the 11 24 operation of the generation facility. 11 25 Code section 437A.8 is amended to provide that a generation 11 26 and transmission electric cooperative is not liable for unpaid 11 27 replacement tax due from a distribution electric cooperative 11 28 member or a municipal utility purchasing member so long as 11 29 appropriate notice as provided for in the Code section is 11 30 given to the director of revenue and finance. The bill also 11 31 provides that if a generation and transmission electric 11 32 cooperative, after notice, does not timely pay the correct 11 33 amount of replacement tax attributable to the excess property 11 34 tax liability to the appropriate county treasurer, after 11 35 receiving the required payment from the distribution electric 12 1 cooperative member or municipal utility purchasing member, 12 2 such replacement tax shall be enforced solely against the 12 3 generation and transmission electric cooperative. 12 4 Code section 437A.11 is amended to authorize the collection 12 5 of accrued interest associated with the replacement taxes and 12 6 special utility property tax levies. The bill also authorizes 12 7 the county treasurer to enforce payment of the special utility 12 8 property tax levy by the tax sale process in the same manner 12 9 as other property tax payments are enforced. The bill 12 10 provides that a tax deed issued does not extinguish a tax lien 12 11 or judgment lien for replacement taxes that has attached to 12 12 the property. 12 13 Code section 437A.14 is amended to provide that if an 12 14 amount of overpaid replacement tax is attributable to payment 12 15 of excess property tax liability, a claim for refund or credit 12 16 may only be made by, and a refund or credit shall only be made 12 17 to, the person who made such excess payment. 12 18 Code section 437A.15 is amended to provide for the 12 19 allocation of electric delivery replacement tax attributable 12 20 to excess property tax liability if excess property tax 12 21 liability has been assigned under Code section 437A.4. The 12 22 Code section is also amended to provide for the accrual of a 12 23 penalty and interest on a delinquent special utility property 12 24 tax levy payment. 12 25 Code section 437A.19 is amended to conform to Code section 12 26 437A.3 regarding the definition of "base year assessed value" 12 27 for a municipal utility subject to Code section 437A.17A. 12 28 Code section 437A.21 is amended to provide that a taxpayer 12 29 is not required to file a return under this section or to 12 30 remit any statewide property tax for any tax year in which the 12 31 taxpayer's statewide property tax liability is $1 or less. 12 32 Code section 443.2 is amended to provide that the actual 12 33 value and the taxable value of property subject to the 12 34 statewide property tax under Code chapter 437A is to be listed 12 35 by the county auditor as part of the aggregate actual value 13 1 and the aggregate taxable value of all taxable property within 13 2 the county for purposes of computing the debt-incurring 13 3 capacity of the county or political subdivision. 13 4 Code section 445.57 is amended to provide that all interest 13 5 and penalties collected on delinquent replacement taxes and 13 6 special utility property tax levies are to be deposited in the 13 7 county general fund. The Code section is also amended to 13 8 specifically state that replacement taxes collected by the 13 9 county treasurer are to be apportioned as directed in Code 13 10 section 445.57. 13 11 Section 14 of the bill provides that the director of 13 12 revenue and finance shall recompute the electric replacement 13 13 delivery tax rate applicable to each electric competitive 13 14 service area under Code section 437A.4 in order to clearly 13 15 reflect the electric generation tax component determined under 13 16 Code section 437A.6, as amended by this bill. 13 17 The bill provides that Code section 437A.5, subsection 7; 13 18 section 437A.6; Code section 437A.8, subsection 4; Code 13 19 section 437A.14, subsection 1; and Code section 437A.15, 13 20 subsection 3, as amended in this bill are made retroactively 13 21 applicable to January 1, 1999, for tax years beginning on and 13 22 after that date. 13 23 The bill takes effect upon enactment. 13 24 LSB 5722HV 78 13 25 mj/cf/24.1
Text: HF02545 Text: HF02547 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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