Text: HSB00174 Text: HSB00176 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 437A.3, subsection 1, unnumbered 1 2 paragraph 1, Code 2001, is amended to read as follows: 1 3 "Assessed value" means the base year assessed value, as 1 4 adjusted by section 437A.19, subsection 2. "Base year 1 5 assessed value", for a taxpayer other than an electric 1 6 company, natural gas company, or electric cooperative, means 1 7 the value attributable to property identified in section 1 8 427A.1, subsection 1, paragraph "h", certified by the 1 9 department of revenue and finance to the county auditors for 1 10 the assessment date of January 1, 1997, and the value 1 11 attributable to property identified in section 427A.1 and 1 12 section 427B.17, subsection 5, as certified by the local 1 13 assessors to the county auditors for the assessment date of 1 14 January 1, 1997, provided, that for a taxpayer subject to 1 15 section 437A.17A, such value shall be the value certified by 1 16 the department of revenue and finance and local assessors to 1 17 the county auditors for the assessment date of January 1, 1 18 1998. However, "base year assessed value", for purposes of 1 19 property of a taxpayer that is a municipal utility, if the 1 20 property is not a major addition, and the property was 1 21 initially assessed to the taxpayer as of January 1, 1998, and 1 22 is not located in a county where the taxpayer had property 1 23 that was assessed for purposes of this chapter as of January 1 24 1, 1997, means the value attributable to such property for the 1 25 assessment date of January 1, 1998. 1 26 Sec. 2. Section 437A.8, subsection 1, unnumbered paragraph 1 27 1, Code 2001, is amended to read as follows: 1 28 Each taxpayer, on or beforeFebruary 28March 31 following 1 29 a tax year, shall file with the director a return including, 1 30 but not limited to, the following information: 1 31 Sec. 3. Section 437A.8, subsection 2, unnumbered paragraph 1 32 1, Code 2001, is amended to read as follows: 1 33 Each taxpayer subject to a municipal transfer replacement 1 34 tax, on or beforeFebruary 28March 31 following a tax year, 1 35 shall file with the chief financial officer of each city 2 1 located within an electric or natural gas competitive service 2 2 area served by a municipal utility as of January 1, 1999, a 2 3 return including, but not limited to, the following 2 4 information: 2 5 Sec. 4. Section 437A.8, subsection 4, unnumbered 2 6 paragraphs 2 and 3, Code 2001, are amended to read as follows: 2 7 If a distribution electric cooperative member or a 2 8 municipal utility purchasing member subject to section 2 9 437A.15, subsection 3, paragraph "b", does not make timely 2 10 payment of the correct amount of replacement tax to the 2 11 generation and transmission electric cooperativeand the2 12generation and transmission electric cooperative so notifies2 13the director and the appropriate county treasurer within2 14fifteen days after August 1, and timely remits to the county2 15treasurer the amounts of replacement tax received by the2 16generation and transmission electric cooperative in accordance2 17with section 437A.15, subsection 3, paragraph "b", the2 18generation and transmission electric cooperative shall not be2 19liable for the unpaid replacement tax due from the2 20distribution electric cooperative member or municipal utility2 21purchasing member. The generation and transmission electric2 22cooperative shall also not be liable for a special utility2 23property tax levy, if any, and shall not be entitled to a tax2 24credit, if any, attributable to the unpaid replacement tax.2 25The county treasurer and the director shall enforce payment of2 26the replacement tax against the appropriate distribution2 27electric cooperative member or municipal utility purchasing2 28member pursuant to sections 437A.9 through 437A.13. The2 29county treasurer shall enforce payment of the special utility2 30property tax levy, if any, against the appropriate2 31distribution electric cooperative member or municipal utility2 32purchasing member.2 33If a generation and transmission electric cooperative2 34receives some, but not all, of the required payment from a2 35distribution electric cooperative member or a municipal3 1utility purchasing member, the generation and transmission 3 2 electric cooperative shall notify the director in writing 3 3 withinfifteenten days afterAugust 1September 10. The 3 4 director shall then notify the generation and transmission 3 5 electric cooperative in writing within five days after 3 6 delivery of notice to the director of the paid amount to be 3 7 remitted to the appropriate county treasurer and shall also 3 8 notify the county treasurer. The generation and transmission 3 9 electric cooperative shall remit the amount determined by the 3 10 director to the appropriate county treasurer by September 30. 3 11 If the generation and transmission electric cooperative timely 3 12 notifies the director and timely remits to the county 3 13 treasurer the amounts of replacement tax, as determined by the 3 14 director, the generation and transmission electric cooperative 3 15 shall not be liable for that unpaid replacement tax due from 3 16 the distribution electric cooperative member or municipal 3 17 utility purchasing member. The generation and transmission 3 18 electric cooperative shall also not be liable for a special 3 19 utility property tax levy, if any, and shall not be entitled 3 20 to a tax credit, if any, attributable to the unpaid 3 21 replacement tax. The county treasurer and the director shall 3 22 enforce payment of the replacement tax against the appropriate 3 23 distribution electric cooperative member or municipal utility 3 24 purchasing member pursuant to sections 437A.9 through 437A.13. 3 25 The county treasurer shall enforce payment of the special 3 26 utility property tax levy, if any, against the appropriate 3 27 distribution electric cooperative member or municipal utility 3 28 purchasing member. For purposes of this paragraph: 3 29 a. Written notice to the director must be either delivered 3 30 to the director by electronic means, United States postal 3 31 service, or a common carrier, by ordinary, certified, or 3 32 registered mail directed to the attention of the director, be 3 33 personally delivered to the director, or be served on the 3 34 director by personal service during business hours. If the 3 35 notice is mailed, a notice is considered delivered on the date 4 1 of the postmark. If a postmark date is not present on the 4 2 mailed article, the date of receipt of notice shall be 4 3 considered the date of the mailing. A notice is considered 4 4 delivered on the date personal service or personal delivery to 4 5 the office of the director is made. 4 6 b. Written notice to a generation and transmission 4 7 electric cooperative must be delivered to the cooperative by 4 8 electronic means, United States postal service, or a common 4 9 carrier, by ordinary, certified, or registered mail, directed 4 10 to the attention of the manager of the cooperative, be 4 11 personally delivered to the manager of the cooperative, or be 4 12 served on the manager of the cooperative by personal service 4 13 during business hours. For the purpose of mailing, a notice 4 14 is considered delivered on the date of the postmark. If a 4 15 postmark date is not present on the mailed article, the date 4 16 of receipt of notice shall be considered the date of the 4 17 mailing. A notice is considered delivered on the date 4 18 personal service or personal delivery to the office of the 4 19 manager of the cooperative is made. 4 20 Sec. 5. Section 437A.8, subsection 6, Code 2001, is 4 21 amended to read as follows: 4 22 6. Notwithstanding subsections 1 through 5, a taxpayer 4 23 shall not be required to file a return otherwise required by 4 24 this section or remit any replacement tax for any tax year in 4 25 which the taxpayer's replacement tax liability before credits 4 26 is three hundred dollars or less, provided that all electric 4 27 companies, electric cooperatives, municipal utilities, and 4 28 natural gas companies shall file a return, regardless of the 4 29 taxpayer's replacement tax liability. 4 30 Sec. 6. Section 437A.15, subsection 3, Code 2001, is 4 31 amended to read as follows: 4 32 3. a. All replacement taxes owed by a taxpayer shall be 4 33 allocated among the local taxing districts in which such 4 34 taxpayer's property is located in accordance with a general 4 35 allocation formula determined by the department of management 5 1 on the basis of general property tax equivalents. General 5 2 property tax equivalents shall be determined by applying the 5 3 levy rates reported by each local taxing district to the 5 4 department of management on or before June 30 following a tax 5 5 year to the assessed value of taxpayer property allocated to 5 6 each such local taxing district as adjusted and reported to 5 7 the department of management in such tax year by the director 5 8 pursuant to section 437A.19, subsection 2. The general 5 9 allocation formula for a tax year shall allocate to each local 5 10 taxing district that portion of the replacement taxes owed by 5 11 each taxpayer which bears the same ratio as such taxpayer's 5 12 general property tax equivalents for each local taxing 5 13 district bears to such taxpayer's total general property tax 5 14 equivalents for all local taxing districts in Iowa. 5 15 b. Notwithstanding other provisions of this section, if 5 16 excess property tax liability has been assigned pursuant to 5 17 section 437A.4, subsection 3, paragraph "c", subparagraph (4), 5 18 and has not been removed, the allocation of electric delivery 5 19 replacement tax attributable to the excess property tax 5 20 liability shall be made by the director and the department of 5 21 management so as to allocate the electric delivery replacement 5 22 tax attributable to the excess property tax liability among 5 23 those local taxing districts in which the property associated 5 24 with the excess property tax liability is located. In order 5 25 to ensure that the electric delivery replacement tax 5 26 attributable to the excess property tax liability is paid to 5 27 the appropriate county treasurer for disposition to the local 5 28 taxing districts, each distribution electric cooperative 5 29 member and each municipal utility purchasing member subject to 5 30 section 437A.4, subsection 3, paragraph "c", subparagraph (4), 5 31 shall pay to the appropriate generation and transmission 5 32 electric cooperative the electric delivery replacement tax 5 33 attributable to the excess property tax liability byAugust 15 34 September 10. The amount of electric delivery replacement tax 5 35 attributable to the excess property tax liability shall equal 6 1 that percentage of total electric delivery replacement tax 6 2 liability that the excess property tax liability bears to the 6 3 total property tax liability contained in the electric 6 4 delivery tax component. The generation and transmission 6 5 electric cooperative shall pay the electric delivery 6 6 replacement tax attributable to the excess property tax 6 7 liability to the appropriate county treasurer. 6 8 c. If paragraph "b" is applicable, on or beforeJune 16 9 August 1, the director shall notify each distribution electric 6 10 cooperative member, each municipal utility purchasing member, 6 11 and each generation and transmission electric cooperative of 6 12 the amount of electric delivery replacement tax to pay to the 6 13 generation and transmission electric cooperative. On or 6 14 beforeJune 1August 1, the director shall notify the 6 15 generation and transmission electric cooperative of the amount 6 16 of replacement tax liability attributable to the excess 6 17 property tax liability that is payable to each county 6 18 treasurer. The director shall determine the amount of any 6 19 special utility property tax levy or tax credit attributable 6 20 to the excess property tax liability which shall be reflected 6 21 in the amount required to be paid by each distribution 6 22 electric cooperative member and each municipal utility 6 23 purchasing member to the generation and transmission electric 6 24 cooperative. 6 25 d. If, during the tax year, a taxpayer transferred 6 26 operating property or an interest in operating property to 6 27 another taxpayer, the transferee taxpayer's replacement tax 6 28 associated with that property shall be allocated, for the tax 6 29 year in which the transfer occurred, under this section in 6 30 accordance with the general allocation formula on the basis of 6 31 the general property tax equivalents of the transferor 6 32 taxpayer. 6 33 e. Notwithstanding the provisions of this section, if 6 34 during the tax year a person who was not a taxpayer during the 6 35 prior tax year acquires a new major addition, as defined in 7 1 section 437A.3, subsection 17, paragraph "d", the replacement 7 2 tax associated with that major addition shall be allocated, 7 3 for that tax year, under this section in accordance with the 7 4 general allocating formula on the basis of the general 7 5 property tax equivalents established under section 437A.15, 7 6 except that the levy rates established and reported to the 7 7 department of management on or before June 30 following the 7 8 tax year in which the major addition was acquired shall be 7 9 applied to the prorated assessed value of the major addition 7 10 and provided that section 437A.19, subsection 2, paragraph 7 11 "b", subparagraph (2), is in any event applicable. For 7 12 purposes of this paragraph, "prorated assessed value of the 7 13 major addition" means the assessed value of the major addition 7 14 as of January 1 of the year following the tax year in which 7 15 the major addition was acquired multiplied by the percentage 7 16 derived by dividing the number of months that the major 7 17 addition existed during the tax year by twelve, counting any 7 18 portion of a month as a full month. 7 19 Sec. 7. Section 437A.19, subsection 2, paragraph b, 7 20 subparagraph (2), Code 2001, is amended to read as follows: 7 21 (2) If, during the preceding calendar year, a taxpayer 7 22 transferred an electric power generating plant or an interest 7 23 in an electric power generating plant to a taxpayer who owned 7 24 no other taxpayer property in this state as of the end of such 7 25 preceding calendar year, in lieu of the adjustment provided in 7 26 subparagraph (1), the director shall allocate the transferee 7 27 taxpayer's change in book value of the statewide amount during 7 28 such preceding calendar year, if any, among local taxing 7 29 districts in proportion to the allocation of the transferor's 7 30 assessed value among local taxing districts as of the end of 7 31 such preceding calendar year. 7 32 Sec. 8. Section 437A.21, subsection 1, unnumbered 7 33 paragraph 1, Code 2001, is amended to read as follows: 7 34 Each electric company, natural gas company, electric 7 35 cooperative, municipal utility, and other person whose 8 1 property is subject to the statewide property tax shall file 8 2 with the director a return, on or beforeFebruary 28March 31 8 3 following the assessment year, including, but not limited to, 8 4 the following information: 8 5 Sec. 9. Section 437A.24, Code 2001, is amended to read as 8 6 follows: 8 7 437A.24 RECORDS. 8 8 Each electric company, natural gas company, electric 8 9 cooperative, municipal utility, and other person who is 8 10 subject to the replacement tax or the statewide property tax 8 11 shall maintain records associated with the replacement tax and 8 12 the assessed value of property subject to the statewide 8 13 property tax for a period oftenfive years following the 8 14 later of the original due date for filing a return pursuant to 8 15 sections 437A.8 and 437A.21 in which such taxes are reported, 8 16 or the date on which either such return is filed. Such 8 17 records shall include those associated with any additions or 8 18 dispositions of property, and the allocation of such property 8 19 among local taxing districts. 8 20 Sec. 9. APPLICABILITY. 8 21 1. Section 1 of this Act is applicable to tax years 8 22 commencing on or after January 1, 2001. 8 23 2. Sections 2 and 3 of this Act are applicable for returns 8 24 due for tax years commencing on or after January 1, 2001. 8 25 3. Section 8 of this Act is applicable for returns due for 8 26 assessment years commencing on or after January 1, 2001. 8 27 EXPLANATION 8 28 This bill makes changes to Code chapter 437A, Taxes on 8 29 Electricity and Natural Gas Providers. The contents of this 8 30 bill are the proposal of the utility replacement tax task 8 31 force. 8 32 The bill makes changes to the definition of "assessed 8 33 value" in Code section 437A.3 to provide that certain property 8 34 of a municipal utility that is not a major addition was 8 35 initially assessed to the taxpayer as of January 1, 1998, and 9 1 is not located in a county where the taxpayer had property 9 2 that was assessed for purposes of Code chapter 437A as of 9 3 January 1, 1997, should have the value associated with the 9 4 1998 date. This change is applicable to tax years commencing 9 5 on or after January 1, 2001. 9 6 The bill changes certain filing dates for tax returns for 9 7 replacement taxes from February 28 to March 31 in Code 9 8 sections 437A.8 and 437A.21. These changes are applicable for 9 9 returns due for tax years and assessment years, respectively, 9 10 commencing on or after January 1, 2001. 9 11 The bill amends Code section 437A.8 to change the date by 9 12 which a generation and transmission electric cooperative must 9 13 notify the director if a distribution electric cooperative 9 14 member or a municipal utility purchasing member fails to make 9 15 timely payment of the replacement tax. The date is changed to 9 16 within 10 days after September 10 instead of the current 9 17 requirement of within 15 days of August 1. The bill expressly 9 18 requires such notice to be in writing, and also requires the 9 19 notice from the director to the generation and transmission 9 20 electric cooperative to be in writing, within five days after 9 21 delivery of notice to the director of nonpayment. The bill 9 22 deletes language that addresses a payment to a generation and 9 23 transmission electric cooperative that is less than all of the 9 24 required payment. The bill also specifies that the generation 9 25 and transmission electric cooperative must remit the amount 9 26 specified by the director to the appropriate county treasurer 9 27 by September 30. The bill also specifies the allowable 9 28 methods of notification and defines when a mailed notice is 9 29 considered to be delivered. 9 30 The bill amends Code section 437A.8 to require that all 9 31 electric companies, electric cooperatives, municipal 9 32 utilities, and natural gas companies file a replacement tax 9 33 return, regardless of the amount of the tax liability. 9 34 The bill amends Code section 437A.15 to change certain 9 35 dates, and to add paragraphs addressing replacement tax 10 1 allocation when operating property is transferred or acquired. 10 2 Code section 437A.19 is also amended to specify that its 10 3 provisions apply to transfers of less than a 100 percent 10 4 interest in an electric power generating plant. 10 5 The bill amends Code section 437A.24 to change the record 10 6 retention requirement for taxpayers subject to the replacement 10 7 tax or statewide property tax from 10 years to five years 10 8 following the filing of a return. 10 9 LSB 1255HC 79 10 10 jj/gg/8
Text: HSB00174 Text: HSB00176 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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