1. For property defined in section 427A.1, subsection 1, paragraphs "e" and "j", acquired or initially leased on or after January 1, 1982, the taxpayer's valuation shall be limited to thirty percent of the net acquisition cost of the property, except as otherwise provided in subsections 2 and 3. For purposes of this section, "net acquisition cost" means the acquired cost of the property including all foundations and installation cost less any excess cost adjustment.
For purposes of this subsection:
a. Property acquired before January 1, 1982, which was owned or used before January 1, 1982, by a related person shall not receive the benefits of this subsection.
b. Property acquired on or after January 1, 1982, which was owned and used by a related person shall not receive any additional benefits under this subsection.
c. Property which was owned or used before January 1, 1982, and subsequently acquired by an exchange of like property shall not receive the benefits of this subsection.
d. Property which was acquired on or after January 1, 1982, and subsequently exchanged for like property shall not receive any additional benefits under this subsection.
e. Property acquired before January 1, 1982, which is subsequently leased to a taxpayer or related person who previously owned the property shall not receive the benefits of this subsection.
f. Property acquired on or after January 1, 1982, which is subsequently leased to a taxpayer or related person who previously owned the property shall not receive any additional benefits under this subsection.
For purposes of this subsection, "related person" means a person who owns or controls the taxpayer's business and another business entity from which property is acquired or leased or to which property is sold or leased. Business entities are owned or controlled by the same person if the same person directly or indirectly owns or controls fifty percent or more of the assets or any class of stock or who directly or indirectly has an interest of fifty percent or more in the ownership or profits.
2. Property defined in section 427A.1, subsection 1, paragraphs "e" and "j", which is first assessed for taxation in this state on or after January 1, 1995, shall be exempt from taxation.
3. Property defined in section 427A.1, subsection 1, paragraphs "e" and "j", and assessed under subsection 1 of this section, shall be valued by the local assessor as follows for the following assessment years:
a. For the assessment year beginning January 1, 1999, at twenty-two percent of the net acquisition cost.
b. For the assessment year beginning January 1, 2000, at fourteen percent of the net acquisition cost.
c. For the assessment year beginning January 1, 2001, at six percent of the net acquisition cost.
d. For the assessment year beginning January 1, 2002, and succeeding assessment years, at zero percent of the net acquisition cost.
4. Property assessed pursuant to this section shall not be eligible to receive a partial exemption under sections 427B.1 to 427B.6.
5. This section shall not apply to property assessed by the department of revenue and finance pursuant to sections 428.24 to 428.29, or chapters 433, 434, and 436 to 438, and such property shall not receive the benefits of this section.
Any electric power generating plant which operated during the preceding assessment year at a net capacity factor of more than twenty percent, shall not receive the benefits of this section or of sections 15.332 and 15.334. For purposes of this section, "electric power generating plant" means any name plate rated electric power generating plant, in which electric energy is produced from other forms of energy, including all taxable land, buildings, and equipment used in the production of such energy. "Net capacity factor" means net actual generation divided by the product of net maximum capacity times the number of hours the unit was in the active state during the assessment year. Upon commissioning, a unit is in the active state until it is decommissioned. "Net actual generation" means net electrical megawatt hours produced by the unit during the preceding assessment year. "Net maximum capacity" means the capacity the unit can sustain over a specified period when not restricted by ambient conditions or equipment deratings, minus the losses associated with station service or auxiliary loads.
6. The taxpayer's valuation of property defined in section 427A.1, subsection 1, paragraphs "e" and "j", and located in an urban renewal area for which an urban renewal plan provides for the division of taxes as provided in section 403.19 to pay the principal and interest on loans, advances, bonds issued under the authority of section 403.9, subsection 1, or indebtedness incurred by a city or county to finance an urban renewal project within the urban renewal area, if such loans, advances, or bonds were issued or indebtedness incurred, on or after January 1, 1982, and on or before June 30, 1995, shall be limited to thirty percent of the net acquisition cost of the property. Such property located in an urban renewal area shall not be valued pursuant to subsection 2 or 3, whichever is applicable, until the assessment year following the calendar year in which the obligations created by any loans, advances, bonds, or indebtedness payable from the division of taxes as provided in section 403.19 have been retired. The taxpayer's valuation for such property shall then be the valuation specified in subsection 2 or 3, whichever is applicable, for the applicable assessment year. If the loans, advances, or bonds issued, or indebtedness incurred between January 1, 1982, and June 30, 1995, are refinanced or refunded after June 30, 1995, the valuation of such property shall then be the valuation specified in subsection 2 or 3, whichever is applicable, for the applicable assessment year beginning with the assessment year following the calendar year in which any of those loans, advances, bonds, or other indebtedness are refinanced or refunded after June 30, 1995.
7. For the purpose of dividing taxes under section 260E.4 or 260F.4, the employer's or business's valuation of property defined in section 427A.1, subsection 1, paragraphs "e" and "j", and used to fund a new jobs training project which project's first written agreement providing for a division of taxes as provided in section 403.19 is approved on or before June 30, 1995, shall be limited to thirty percent of the net acquisition cost of the property. An employer's or business's taxable property used to fund a new jobs training project shall not be valued pursuant to subsection 2 or 3, whichever is applicable, until the assessment year following the calendar year in which the certificates or other funding obligations have been retired or escrowed. The taxpayer's valuation for such property shall then be the valuation specified in subsection 1 for the applicable assessment year. If the certificates issued, or other funding obligations incurred, between January 1, 1982, and June 30, 1995, are refinanced or refunded after June 30, 1995, the valuation of such property shall then be the valuation specified in subsection 2 or 3, whichever is applicable, for the applicable assessment year beginning with the assessment year following the calendar year in which those certificates or other funding obligations are refinanced or refunded after June 30, 1995.
85 Acts, ch 32, §109; 93 Acts, ch 180, §12; 95 Acts, ch 206, §29
Referred to in § 427B.19, 427B.19B
Iowa General Assembly
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