Text: HF02540 Text: HF02542 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2541 1 2 1 3 AN ACT 1 4 RELATING TO UTILITY REPLACEMENT TAXES BY REDEFINING MAJOR 1 5 ADDITIONS FOR PURPOSES OF ALLOCATING REPLACEMENT TAXES TO 1 6 TAXING DISTRICTS, REQUIRING CERTAIN TAXPAYERS TO REPORT 1 7 ESTIMATED REPLACEMENT TAXES, AND CHANGING OR ESTABLISHING 1 8 CERTAIN REPORTING DATES AND INCLUDING EFFECTIVE AND RETRO- 1 9 ACTIVE APPLICABILITY DATE PROVISIONS. 1 10 1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 12 1 13 Section 1. Section 437A.3, subsection 18, Code Supplement 1 14 2003, is amended to read as follows: 1 15 18. "Major addition" meansanyeither of the following: 1 16 a. Any acquisition on or after January 1, 1998, by a 1 17 taxpayer, by transfer of ownership, self-construction, or 1 18 capital lease of any interest in any of the following: 1 19a.(1) A building in this state where the acquisition cost 1 20 of all interests acquired exceeds ten million dollars. 1 21b.(2) An electric power generating plant where the 1 22 acquisition cost of all interests acquired exceeds ten million 1 23 dollars. For purposes of this paragraph, "electric power 1 24 generating plant" means each nameplate rated electric power 1 25 generating plant owned solely or jointly by any person or 1 26 electric power facility financed under the provisions of 1 27 chapter 28F or 476A in which electrical energy is produced 1 28 from other forms of energy, including all equipment used in 1 29 the production of such energy through its step-up transformer. 1 30c.(3) Natural gas operating property within a local 1 31 taxing district where the acquisition cost of all interests 1 32 acquired exceeds one million dollars. 1 33d.(4) Any property described in section 437A.16 in this 1 34 state acquired by a person not previously subject to taxation 1 35 under this chapter. 2 1 b. Any acquisition on or after January 1, 2004, by a 2 2 taxpayer, by transfer of ownership, self-construction, or 2 3 capital lease of any interest in electric transmission 2 4 operating property within a local taxing district where the 2 5 acquisition cost of all interests acquired exceeds one million 2 6 dollars. 2 7 For purposes of this chapter, the acquisition cost of an 2 8 asset acquired by capital lease is its capitalized value 2 9 determined under generally accepted accounting principles. 2 10 Sec. 2. Section 437A.15, subsection 3, paragraph e, Code 2 11 Supplement 2003, is amended to read as follows: 2 12 e. Notwithstanding the provisions of this section, if 2 13 during the tax year a person who was not a taxpayer during the 2 14 prior tax year acquires a new major addition, as defined in 2 15 section 437A.3, subsection 18, paragraph"d""a", subparagraph 2 16 (4), the replacement tax associated with that major addition 2 17 shall be allocated, for that tax year, under this section in 2 18 accordance with the general allocating formula on the basis of 2 19 the general property tax equivalents established under section 2 20 437A.15, except that the levy rates established and reported 2 21 to the department of management on or before June 30 following 2 22 the tax year in which the major addition was acquired shall be 2 23 applied to the prorated assessed value of the major addition 2 24 and provided that section 437A.19, subsection 2, paragraph 2 25 "b", subparagraph (2), is in any event applicable. For 2 26 purposes of this paragraph, "prorated assessed value of the 2 27 major addition" means the assessed value of the major addition 2 28 as of January 1 of the year following the tax year in which 2 29 the major addition was acquired multiplied by the percentage 2 30 derived by dividing the number of months that the major 2 31 addition existed during the tax year by twelve, counting any 2 32 portion of a month as a full month. 2 33 Sec. 3. Section 437A.19, subsection 2, paragraph f, 2 34 unnumbered paragraph 5, Code Supplement 2003, is amended to 2 35 read as follows: 3 1 In addition to reporting the assessed values as described 3 2 in this subsection, the director, on or before October 31,3 32003, in the case of January 1, 2003, values, and on or before3 4August 31of eachsubsequentassessment year, shall also 3 5 report to the department of management and to the auditor of 3 6 each county the taxable value of taxpayer property as of 3 7 January 1 of such assessment year for each local taxing 3 8 district. For purposes of this chapter, "taxable value" means 3 9 the value for all property subject to the replacement tax 3 10 annually determined by the director, by dividing the estimated 3 11 annual replacement tax liability for that property by the 3 12 prior year's consolidated taxing district rate for the taxing 3 13 district where that property is located, then multiplying the 3 14 quotient by one thousand.The prior year's replacement tax3 15amounts for that property shall be used to estimate the3 16current tax year's taxable value for that property. If3 17property not subject to any threshold recalculation is3 18generating replacement tax for the first time, or if a3 19taxpayer's replacement tax will not be changed by any3 20threshold recalculation and the taxpayer believes that the3 21replacement tax will vary more than ten percent from the3 22previous tax year, the taxpayer shall report to the director3 23by July 15 of the current calendar year, on forms prescribed3 24by the director, the estimated replacement tax liability that3 25will be attributable to that property for the current tax3 26year.A taxpayer who paid more than five hundred thousand 3 27 dollars in replacement tax in the previous tax year or who 3 28 believes their replacement tax liability will vary more than 3 29 ten percent from the previous tax year shall report to the 3 30 director by October 1 of the current calendar year, on forms 3 31 prescribed by the director, the estimated replacement tax 3 32 liability that will be attributable to all of the taxpayer's 3 33 property subject to replacement tax for the current tax year. 3 34 The department shall utilize the estimated replacement tax 3 35 liability as reported by the taxpayer or the taxpayer's prior 4 1 year's replacement tax amounts to estimate the current tax 4 2 year's taxable value for that property. Furthermore, a 4 3 taxpayer who has a new major addition of operating property 4 4 which is put into service for the first time in the current 4 5 calendar year shall report to the director by October 1 of the 4 6 current calendar year, or at the time the major addition is 4 7 put into service, whichever time is later, on forms prescribed 4 8 by the director, the cost of the major addition and, if not 4 9 previously reported, shall report the estimated replacement 4 10 taxes which that asset will generate in the current calendar 4 11 year. For the purposes of computing the taxable value of 4 12 property in a taxing district, the taxing district's share of 4 13 the estimated replacement tax liability shall be the taxing 4 14 district's percentage share of the "assessed value allocated 4 15 by property tax equivalent" multiplied by the total estimated 4 16 replacement tax. "Assessed value allocated by property tax 4 17 equivalent" shall be determined by dividing the taxpayer's 4 18 current year assessed valuation in a taxing district by one 4 19 thousand, and then multiplying by the prior year's 4 20 consolidated tax rate. 4 21 Sec. 4. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 4 22 This Act, being deemed of immediate importance, takes effect 4 23 upon enactment and applies retroactively to January 1, 2004. 4 24 4 25 4 26 4 27 CHRISTOPHER C. RANTS 4 28 Speaker of the House 4 29 4 30 4 31 4 32 JEFFREY M. LAMBERTI 4 33 President of the Senate 4 34 4 35 I hereby certify that this bill originated in the House and 5 1 is known as House File 2541, Eightieth General Assembly. 5 2 5 3 5 4 5 5 MARGARET THOMSON 5 6 Chief Clerk of the House 5 7 Approved , 2004 5 8 5 9 5 10 5 11 THOMAS J. VILSACK 5 12 Governor
Text: HF02540 Text: HF02542 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2004 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue May 4 03:30:24 CDT 2004
URL: /DOCS/GA/80GA/Legislation/HF/02500/HF02541/040407.html
jhf