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, or waste 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