Text: SF00274 Text: SF00276 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 275 1 2 1 3 AN ACT 1 4 RELATING TO THE TAXATION OF UTILITIES, INCLUDING ESTABLISHMENT 1 5 OF A NATURAL GAS DELIVERY TAX RATE FOR NEW ELECTRIC POWER 1 6 GENERATING PLANTS, ESTABLISHMENT OF A REPLACEMENT 1 7 TRANSMISSION TAX FOR CERTAIN MUNICIPAL UTILITIES, METHODS 1 8 OF ALLOCATION OF REPLACEMENT GENERATION TAX INCURRED BY 1 9 CERTAIN NEW STAND-ALONE ELECTRIC POWER GENERATING PLANTS, 1 10 A FORMULA FOR DETERMINING TAXABLE VALUE FOR PROPERTY 1 11 GENERATING REPLACEMENT TAX ANNUALLY, EXTENDING THE TASK 1 12 FORCE, AND PROVIDING FOR APPLICABILITY. 1 13 1 14 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 15 1 16 Section 1. Section 426B.2, subsections 1 and 3, Code 2003, 1 17 are amended to read as follows: 1 18 1. The moneys in the property tax relief fund available to 1 19 counties for a fiscal year shall be distributed as provided in 1 20 this section. A county's proportion of the moneys shall be 1 21 equivalent to the sum of the following three factors: 1 22 a. One-third based upon the county's proportion of the 1 23 state's general population. 1 24 b. One-third based upon the county's proportion of the 1 25 state's total taxable property valuation assessed for taxes 1 26 payable in the previous fiscal year. 1 27 c. One-third based upon the county's proportion of all 1 28 counties' base year expenditures, as defined in section 1 29 331.438. 1 30 Moneys provided to a county for property tax relief in a 1 31 fiscal year, excluding replacement taxes in the property tax 1 32 relief fund, in accordance with this subsection shall not be 1 33 less than the amount provided for property tax relief in the 1 34 previous fiscal year. 1 35 3. The director of human services shall draw warrants on 2 1 the property tax relief fund, payable to the county treasurer 2 2 in the amount due to a county in accordance with subsection 1 2 3 and mail the warrants to the county auditors in July and 2 4 January of each year. Any replacement generation tax in the 2 5 property tax relief fund as of November 1 shall be paid to the 2 6 county treasurers in July and January of the fiscal year 2 7 beginning the following July 1. 2 8 Sec. 2. Section 437A.3, Code 2003, is amended by adding 2 9 the following new subsection: 2 10 NEW SUBSECTION. 4A. "Cogeneration facility" means a 2 11 facility with a capacity of two hundred megawatts or less that 2 12 uses the same energy source for the sequential generation of 2 13 electrical or mechanical power in combination with steam, 2 14 heat, or other forms of useful energy and, except for 2 15 ownership, meets the criteria to be a qualifying cogeneration 2 16 facility as defined in the federal Public Utility Regulatory 2 17 Policies Act of 1978, 16 U.S.C. } 2601 et seq., and related 2 18 federal regulations. 2 19 Sec. 3. Section 437A.3, subsection 10, Code 2003, is 2 20 amended by adding the following new unnumbered paragraph: 2 21 NEW UNNUMBERED PARAGRAPH. "New electric power generating 2 22 plant" means an electric power generating plant that is owned 2 23 by or leased to an electric company, electric cooperative, or 2 24 municipal utility, and that initially generates electricity 2 25 subject to replacement generation tax under section 437A.6 on 2 26 or after January 1, 2003. 2 27 Sec. 4. Section 437A.3, subsection 13, Code 2003, is 2 28 amended by adding the following new unnumbered paragraph: 2 29 NEW UNNUMBERED PARAGRAPH. "Local amount" for the purposes 2 30 of determining the local taxable value for a new electric 2 31 power generating plant shall annually be determined to be 2 32 equal up to the first forty-four million four hundred forty- 2 33 four thousand four hundred forty-five dollars of the taxable 2 34 value of the new electric power generating plant. "Local 2 35 amount" for the purposes of determining the local assessed 3 1 value for a new electric power generating plant shall be 3 2 annually determined to be the percentage share of the taxable 3 3 value of the new electric power generating plant allocated as 3 4 the local amount multiplied by the total assessed value of the 3 5 new electric power generating plant. 3 6 Sec. 5. Section 437A.3, subsection 21, paragraph a, 3 7 subparagraph (1), subparagraph subdivision (am), Code 2003, is 3 8 amended to read as follows: 3 9 (am) The city of Waukee in Dallas county and the area 3 10 within two miles of the city limits of Waukee as of January 1, 3 11 1999, not including any part of the cities of Clive, 3 12 Urbandale, or West Des Moines. 3 13 Sec. 6. Section 437A.3, Code 2003, is amended by adding 3 14 the following new subsection: 3 15 NEW SUBSECTION. 27A. "Taxable value" means as defined in 3 16 section 437A.19, subsection 2, paragraph "f". 3 17 Sec. 7. Section 437A.5, subsection 1, Code 2003, is 3 18 amended by adding the following new paragraph: 3 19 NEW PARAGRAPH. c. Notwithstanding paragraphs "a" and "b", 3 20 a natural gas delivery rate of one and eleven-hundredths of a 3 21 cent (.0111) per therm of natural gas is imposed on all 3 22 natural gas delivered to or consumed by a new electric power 3 23 generating plant for purposes of generating electricity within 3 24 the state during the tax year. However, if a new electric 3 25 power generating plant is exempt from a replacement generation 3 26 tax pursuant to section 437A.6, subsection 1, paragraph "b", 3 27 the natural gas delivery rate for the municipal service area 3 28 that the new plant serves shall instead apply for deliveries 3 29 of natural gas by the municipal gas utility. 3 30 The provisions of subsection 8, shall not apply to the 3 31 therms of natural gas subject to the delivery tax set forth in 3 32 this paragraph. 3 33 If the new electric power generating plant is part of a 3 34 cogeneration facility, the natural gas delivery rate for that 3 35 plant shall be the lesser of the natural gas delivery rate 4 1 established in this paragraph or the rate per therm of natural 4 2 gas as in effect at the time of the initial natural gas 4 3 deliveries to the plant for the natural gas competitive 4 4 service area where the new electric power generating plant is 4 5 located. 4 6 Sec. 8. Section 437A.5, subsection 6, Code 2003, is 4 7 amended to read as follows: 4 8 6. Notwithstanding subsection 1, the natural gas delivery 4 9 tax rate applied to therms of natural gas delivered by a 4 10 taxpayer to utility property and facilitieswhichthat are 4 11 placed in service on or after January 1, 1999, andwhichthat 4 12 are owned by or leased to and initially served by such 4 13 taxpayer shall be the natural gas delivery tax rate in effect 4 14 for the natural gas competitive service area principally 4 15 served by such utility property and facilities even though 4 16 such utility property and facilities may be physically located 4 17 in another natural gas competitive service area. 4 18 This subsection shall not apply to natural gas delivered to 4 19 or consumed by new electric power generating plants. 4 20 Sec. 9. Section 437A.7, Code 2003, is amended by adding 4 21 the following new subsection: 4 22 NEW SUBSECTION. 1A. In lieu of the replacement 4 23 transmission tax imposed in subsection 1, a municipal utility 4 24 whose replacement transmission tax liability for the tax year 4 25 1999 was limited to the tax imposed by this section and whose 4 26 anticipated tax revenues from a taxpayer, as defined in 4 27 section 437A.15, subsection 4, for the tax year 1999, exceeded 4 28 its replacement transmission tax by more than one hundred 4 29 thousand dollars shall be subject to replacement transmission 4 30 tax on all transmission lines owned by or leased to the 4 31 municipal utility as of the last day of the tax year 2000 as 4 32 follows: 4 33 a. Three thousand twenty-five dollars per pole mile of 4 34 transmission line owned or leased by the taxpayer not 4 35 exceeding one hundred kilovolts. 5 1 b. Seven thousand dollars per pole mile of transmission 5 2 line owned or leased by the taxpayer greater than one hundred 5 3 fifty kilovolts but not exceeding three hundred kilovolts. 5 4 Sec. 10. Section 437A.8, subsection 4, Code 2003, is 5 5 amended by adding the following new paragraph: 5 6 NEW PARAGRAPH. d. Notwithstanding paragraph "a", a 5 7 taxpayer who owns or leases a new electric power generating 5 8 plant and who has no other operating property in the state of 5 9 Iowa except for operating property directly serving the new 5 10 electric power generating plant as described in section 5 11 437A.16, shall pay the replacement generation tax associated 5 12 with the allocation of the local amount to the county 5 13 treasurer of the county in which the local amount is located 5 14 and shall remit the remaining replacement generation tax, if 5 15 any, to the director according to paragraph "a" for remittance 5 16 of the tax to county treasurers. The director shall notify 5 17 each taxpayer on or before August 31 following a tax year of 5 18 its remaining replacement generation tax to be remitted to the 5 19 director. All remaining replacement generation tax revenues 5 20 received by the director shall be deposited in the property 5 21 tax relief fund created in section 426B.1, and shall be 5 22 distributed as provided in section 426B.2. 5 23 Sec. 11. Section 437A.15, subsection 3, paragraph a, Code 5 24 2003, is amended to read as follows: 5 25 a. All replacement taxes owed by a taxpayer shall be 5 26 allocated among the local taxing districts in which such 5 27 taxpayer's property is located in accordance with a general 5 28 allocation formula determined by the department of management 5 29 on the basis of general property tax equivalents. General 5 30 property tax equivalents shall be determined by applying the 5 31 levy rates reported by each local taxing district to the 5 32 department of management on or before June 30 following a tax 5 33 year to theassessedtaxable value of taxpayer property 5 34 allocated to each such local taxing district as adjusted and 5 35 reported to the department of management in such tax year by 6 1 the director pursuant to section 437A.19, subsection 2. The 6 2 general allocation formula for a tax year shall allocate to 6 3 each local taxing district that portion of the replacement 6 4 taxes owed by each taxpayer which bears the same ratio as such 6 5 taxpayer's general property tax equivalents for each local 6 6 taxing district bears to such taxpayer's total general 6 7 property tax equivalents for all local taxing districts in 6 8 Iowa. 6 9 When allocating natural gas delivery taxes on deliveries of 6 10 natural gas to a new electric power generating plant, ten 6 11 percent of those natural gas delivery taxes shall be allocated 6 12 over new gas property built to directly serve the new electric 6 13 power generating plant and ninety percent of those natural gas 6 14 delivery taxes shall be allocated to the general property tax 6 15 equivalents of all gas property within the natural gas 6 16 competitive service area or areas where the new gas property 6 17 is located. 6 18 Sec. 12. Section 437A.15, subsection 3, Code 2003, is 6 19 amended by adding the following new paragraph: 6 20 NEW PARAGRAPH. f. Notwithstanding the provisions of this 6 21 section, if a taxpayer is a municipal utility or a municipal 6 22 owner of an electric power facility financed under the 6 23 provisions of chapter 28F or 476A, the assessed value, other 6 24 than the local amount, of a new electric power generating 6 25 plant shall be allocated to each taxing district in which the 6 26 municipal utility or municipal owner is serving customers and 6 27 has electric meters in operation in the ratio that the number 6 28 of operating electric meters of the municipal utility or 6 29 municipal owner located in the taxing district bears to the 6 30 total number of operating electric meters of the municipal 6 31 utility or municipal owner in the state as of January 1 of the 6 32 tax year. If the municipal utility or municipal owner of an 6 33 electric power facility financed under the provisions of 6 34 chapter 28F or 476A has a new electric power generating plant 6 35 but the municipal utility or municipal owner has no operating 7 1 electric meters in this state, the municipal utility or 7 2 municipal owner shall pay the replacement generation tax 7 3 associated with the new electric power generating plant 7 4 allocation of the local amount to the county treasurer of the 7 5 county in which the local amount is located and shall remit 7 6 the remaining replacement generation tax, if any, to the 7 7 director at the times contained in section 437A.8, subsection 7 8 4, for remittance of the tax to the county treasurers. All 7 9 remaining replacement generation tax revenues received by the 7 10 director shall be deposited in the property tax relief fund 7 11 created in section 426B.1, and shall be distributed as 7 12 provided in section 426B.2. 7 13 Sec. 13. Section 437A.15, subsection 7, Code 2003, is 7 14 amended to read as follows: 7 15 7.On or before July 1, 1998, theThe department of 7 16 management, in consultation with the department of revenue and 7 17 finance, shallinitiate andcoordinate theestablishment of a7 18 utility replacement tax task force and provide staffing 7 19 assistance to the task force. It is the intent of the general 7 20 assembly that the task force include representatives of the 7 21 department of management, department of revenue and finance, 7 22 electric companies, natural gas companies, municipal 7 23 utilities, electric cooperatives, counties, cities, school 7 24 boards, and industrial, commercial, and residential consumers, 7 25 and other appropriate stakeholders. 7 26 The task force shall study the effects of the replacement 7 27 tax on local taxing authorities, local taxing districts, 7 28 consumers, and taxpayers and the department of management 7 29 shall report to the general assembly by January 1 of each year 7 30 through January 1,20032005, the results of the study and the 7 31 specific recommendations of the task force for modifications 7 32 to the replacement tax, if any, which will further the 7 33 purposes of tax neutrality for local taxing authorities, local 7 34 taxing districts, taxpayers, and consumers, consistent with 7 35 the stated purposes of this chapter. The department of 8 1 management shall also report to the legislative council by 8 2 November 15 of each year through20022004, the status of the 8 3 task force study and any recommendations. 8 4 Sec. 14. Section 437A.19, subsection 2, paragraph f, Code 8 5 2003, is amended to read as follows: 8 6 f. In the event the base year assessed value of taxpayer 8 7 property is adjusted as a result of taxpayer appeals, reduce 8 8 the assessed value of taxpayer property in each local taxing 8 9 district to reflect such adjustment. The adjustment shall be 8 10 allocated in proportion to the allocation of the taxpayer's 8 11 assessed value among the local taxing districts determined 8 12 without regard to this adjustment.If anAn adjustment to the 8 13 base year assessed value of taxpayer propertyis finally8 14determined on or before September 30, 1999, it shall be8 15reflected in the January 1, 1999, assessed value. Otherwise,8 16any such adjustmentshall be made as of January 1 of the year 8 17 following the date on which the adjustment is finally 8 18 determined. 8 19 In no event shall the adjustments set forth in this 8 20 subsection reduce the assessed value of taxpayer property in 8 21 any local taxing district below zero. 8 22 The director,on or before October 31, 1999, in the case of8 23January 1, 1999, assessed values, andon or before August 31 8 24 of eachsubsequentassessment year, shall report to the 8 25 department of management and to the auditor of each county the 8 26 adjusted assessed value of taxpayer property as of January 1 8 27 of such assessment year for each local taxing district,8 28provided that for a taxpayer whose base year as defined in8 29section 437A.3, subsection 1, changed from 1997 to 1998, the8 30director shall, before May 1, 2000, report to the department8 31of management and to the auditor of each county, the assessed8 32values as of January 1, 1999. For purposes of this 8 33 subsection, the assessed value of taxpayer property in each 8 34 local taxing district subject to adjustment under this section 8 35 by the director means the assessed value of such property as 9 1 of the preceding January 1 as determined and allocated among 9 2 the local taxing districts by the director. 9 3 Nothing in this chapter shall be interpreted to authorize 9 4 local taxing authorities to exclude from the calculation of 9 5 levy rates theadjusted assessedtaxable value of taxpayer 9 6 property reported to county auditors pursuant to this 9 7 subsection. 9 8 In addition to reporting the assessed values as described 9 9 in this subsection, the director, on or before October 31, 9 10 2003, in the case of January 1, 2003, values, and on or before 9 11 August 31 of each subsequent assessment year, shall also 9 12 report to the department of management and to the auditor of 9 13 each county the taxable value of taxpayer property as of 9 14 January 1 of such assessment year for each local taxing 9 15 district. For purposes of this chapter, "taxable value" means 9 16 the value for all property subject to the replacement tax 9 17 annually determined by the director, by dividing the estimated 9 18 annual replacement tax liability for that property by the 9 19 prior year's consolidated taxing district rate for the taxing 9 20 district where that property is located, then multiplying the 9 21 quotient by one thousand. The prior year's replacement tax 9 22 amounts for that property shall be used to estimate the 9 23 current tax year's taxable value for that property. If 9 24 property not subject to any threshold recalculation is 9 25 generating replacement tax for the first time, or if a 9 26 taxpayer's replacement tax will not be changed by any 9 27 threshold recalculation and the taxpayer believes that the 9 28 replacement tax will vary more than ten percent from the 9 29 previous tax year, the taxpayer shall report to the director 9 30 by July 15 of the current calendar year, on forms prescribed 9 31 by the director, the estimated replacement tax liability that 9 32 will be attributable to that property for the current tax 9 33 year. For the purposes of computing the taxable value of 9 34 property in a taxing district, the taxing district's share of 9 35 the estimated replacement tax liability shall be the taxing 10 1 district's percentage share of the "assessed value allocated 10 2 by property tax equivalent" multiplied by the total estimated 10 3 replacement tax. "Assessed value allocated by property tax 10 4 equivalent" shall be determined by dividing the taxpayer's 10 5 current year assessed valuation in a taxing district by one 10 6 thousand, and then multiplying by the prior year's 10 7 consolidated tax rate. 10 8 Sec. 15. RETROACTIVE APPLICABILITY. This bill applies 10 9 retroactively to tax years beginning on or after January 1, 10 10 2003. 10 11 10 12 10 13 10 14 MARY E. KRAMER 10 15 President of the Senate 10 16 10 17 10 18 10 19 CHRISTOPHER C. RANTS 10 20 Speaker of the House 10 21 10 22 I hereby certify that this bill originated in the Senate and 10 23 is known as Senate File 275, Eightieth General Assembly. 10 24 10 25 10 26 10 27 MICHAEL E. MARSHALL 10 28 Secretary of the Senate 10 29 Approved , 2003 10 30 10 31 10 32 10 33 THOMAS J. VILSACK 10 34 Governor
Text: SF00274 Text: SF00276 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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