House File 2274 H-8016 Amend House File 2274 as follows: 1 1. By striking everything after the enacting 2 clause and inserting: 3 < Section 1. Section 427A.1, subsection 1, paragraph 4 h, Code 2011, is amended to read as follows: 5 h. Property assessed by the department of revenue 6 pursuant to sections 428.24 to 428.29 , or chapters 433 , 7 434 , 437 , 437A , and 438 . 8 Sec. 2. Section 433.4, Code 2011, is amended to 9 read as follows: 10 433.4 Assessment. 11 1. The director of revenue shall on or before 12 October 31 each year, proceed to find the actual value 13 of the property of these companies in this state used 14 by the companies in the transaction of telegraph and 15 telephone business , taking into consideration the 16 information obtained from the statements required, and 17 any further information the director can obtain, using 18 the same as a means for determining the actual cash 19 value of the property of these companies within this 20 state. The director shall also take into consideration 21 the valuation of all property of these companies, 22 including franchises and the use of the property in 23 connection with lines outside the state, and making 24 these deductions as may be necessary on account of 25 extra value of property outside the state as compared 26 with the value of property in the state, in order that 27 the actual cash value of the property of the company 28 within this state may be ascertained. The assessment 29 shall include all property of every kind and character 30 whatsoever, real, personal, or mixed, used by the 31 companies in the transaction of telegraph and telephone 32 business; and the The property so included in the 33 assessment shall not be taxed in any other manner than 34 as provided in this chapter . 35 2. a. Except as provided in paragraph “c ”, for 36 assessment years beginning on or after January 1, 37 2013, a company’s property, excluding the property 38 identified in paragraph “b” as exempt from taxation, 39 shall be subject to assessment and taxation under this 40 chapter by the director of revenue in the same manner 41 as property assessed and taxed as commercial property 42 under chapters 427, 427A, 427B, 428, and 441. 43 b. All of the following is exempt from taxation and 44 shall not be assessed for taxation under this chapter: 45 (1) Central office equipment. 46 (2) Transmission equipment. 47 (3) Qualified telephone company property. However, 48 qualified telephone company property shall be valued 49 and included in the company’s assessment for the 50 -1- HF2274.3810 (3) 84 md/sc 1/ 3 #1.

assessment years, and to the extent specified, in 1 paragraph “c” . 2 c. For assessment years beginning on or after 3 January 1, 2013, but before January 1, 2020, the 4 director of revenue shall include as part of the actual 5 value determined under paragraph “a” for the applicable 6 assessment year, the following: 7 (1) For the assessment year beginning January 8 1, 2013, an amount equal to the actual value of the 9 company’s qualified telephone company property that 10 exceeds five million dollars. 11 (2) For the assessment year beginning January 12 1, 2014, an amount equal to the actual value of the 13 company’s qualified telephone company property that 14 exceeds twenty-five million dollars. 15 (3) For the assessment year beginning January 16 1, 2015, an amount equal to the actual value of the 17 company’s qualified telephone company property that 18 exceeds fifty million dollars. 19 (4) For the assessment year beginning January 20 1, 2016, an amount equal to the actual value of the 21 company’s qualified telephone company property that 22 exceeds seventy-five million dollars. 23 (5) For the assessment year beginning January 24 1, 2017, an amount equal to the actual value of the 25 company’s qualified telephone company property that 26 exceeds one hundred million dollars. 27 (6) For the assessment year beginning January 28 1, 2018, an amount equal to the actual value of the 29 company’s qualified telephone company property that 30 exceeds one hundred twenty-five million dollars. 31 (7) For the assessment year beginning January 32 1, 2019, an amount equal to the actual value of the 33 company’s qualified telephone company property that 34 exceeds one hundred fifty million dollars. 35 Sec. 3. Section 433.12, Code 2011, is amended by 36 adding the following new subsections: 37 NEW SUBSECTION . 1A. As used in this chapter, 38 “central office equipment” means equipment owned or 39 leased by a company and used in initiating, amplifying, 40 switching, or monitoring telecommunications services, 41 including such ancillary equipment necessary for the 42 support, regulation, control, repair, or testing of 43 such equipment. 44 NEW SUBSECTION . 3. As used in this chapter, 45 “qualified telephone company property” means telephone 46 wire, telephone cable, fiber optic cable, conduit 47 systems, poles, or other equipment owned or leased by 48 a company and used by the company to transmit sound or 49 data. 50 -2- HF2274.3810 (3) 84 md/sc 2/ 3

NEW SUBSECTION . 4. As used in this chapter, 1 “transmission equipment” means equipment owned or 2 leased by a company and used in the process of sending 3 information from one location to another location, 4 including such ancillary equipment necessary for the 5 support, regulation, control, repair, or testing of 6 such equipment. 7 Sec. 4. Section 476.1D, subsection 10, Code 8 Supplement 2011, is amended by striking the subsection. 9 Sec. 5. EFFECTIVE DATE. 10 1. Except as provided in subsection 2, this Act 11 takes effect July 1, 2012. 12 2. The section of this Act amending section 476.1D 13 takes effect July 1, 2019. 14 Sec. 6. APPLICABILITY. 15 1. Except as provided in subsection 2, this Act 16 applies to assessment years beginning on or after 17 January 1, 2013. 18 2. The section of this Act amending section 476.1D 19 applies to assessment years beginning on or after 20 January 1, 2020. > 21 2. Title page, by striking lines 1 through 11 and 22 inserting < An Act relating to assessment and taxation 23 of telecommunications company property and including 24 effective date and applicability provisions. > 25 3. By renumbering as necessary. 26 ______________________________ THOMAS of Clayton -3- HF2274.3810 (3) 84 md/sc 3/ 3 #2. #3.