Senate File 68 SENATE FILE BY BRUNKHORST, ZIEMAN, and REHBERG (COMPANION TO LSB 1721HH BY LALK) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the recycling property exemption from property 2 tax and including an applicability date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1721SS 80 5 mg/sh/8 PAG LIN 1 1 Section 1. Section 427.1, subparagraph 19, unnumbered 1 2 paragraph 8, Code 2003, is amended to read as follows: 1 3 For the purposes of this subsection, "pollution=control 1 4 property" means personal property or improvements to real 1 5 property, or any portion thereof, used primarily to control or 1 6 abate pollution of any air or water of this state or used 1 7 primarily to enhance the quality of any air or water of this 1 8 state and "recycling property" means personal property or 1 9 improvements to real property or any portion of the property, 1 10 used primarily in the manufacturing process and resulting 1 11 directly in the conversion of waste plastic, wastepaper 1 12 products,orwaste paperboard, or wood products into new raw 1 13 materials or products composed primarily of recycled material. 1 14 In the event such property shall also serve other purposes or 1 15 uses of productive benefit to the owner of the property, only 1 16 such portion of the assessed valuation thereof as may 1 17 reasonably be calculated to be necessary for and devoted to 1 18 the control or abatement of pollution, to the enhancement of 1 19 the quality of the air or water of this state, or for 1 20 recycling shall be exempt from taxation under this subsection. 1 21 Sec. 2. IMPLEMENTATION OF ACT. Section 25B.7 does not 1 22 apply to the exemption in section 1 of this Act. 1 23 Sec. 3. APPLICABILITY. This Act applies to assessment 1 24 years beginning on or after January 1, 2004. 1 25 EXPLANATION 1 26 This bill expands the definition of recycling property for 1 27 purposes of the exemption from property tax for recycling 1 28 property. Present law provides that in order for the property 1 29 to be considered recycling property, the property must be 1 30 primarily used in the manufacturing process that results 1 31 directly in the conversion of waste plastic, wastepaper 1 32 products, or waste paperboard into new raw materials or 1 33 products. The bill expands this exemption to include property 1 34 used to convert wood products into new raw materials or 1 35 products. 2 1 The bill applies to assessment years beginning on or after 2 2 January 1, 2004. 2 3 LSB 1721SS 80 2 4 mg/sh/8