House File 2758 - Introduced



                                     HOUSE FILE       
                                     BY  COMMITTEE ON WAYS AND MEANS

                                     (SUCCESSOR TO HF 2441)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the assessment for property taxation purposes
  2    of machinery, equipment, and fixtures used at concrete mixing
  3    facilities and hot mix asphalt facilities and including
  4    effective date and retroactive applicability date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5153HV 81
  7 sc/je/5

PAG LIN



  1  1    Section 1.  Section 427A.1, subsection 1, paragraph c, Code
  1  2 2005, is amended to read as follows:
  1  3    c.  Buildings, structures or improvements, any of which are
  1  4 constructed on or in the land, attached to the land, or placed
  1  5 upon a foundation whether or not attached to the foundation.
  1  6 However, property taxed under chapter 435 and property that is
  1  7 a concrete batch plant as that term is defined in subsection 4
  1  8 shall not be assessed and taxed as real property.
  1  9    Sec. 2.  Section 427A.1, subsection 4, Code 2005, is
  1 10 amended to read as follows:
  1 11    4.  Notwithstanding the definition of "attached" in
  1 12 subsection 2, property is not "attached" if it any of the
  1 13 following conditions are met:
  1 14    a.  It is a fixture used for cooking, refrigeration, or
  1 15 freezing of value=added agricultural products, used in value=
  1 16 added agricultural processing or used in direct support of
  1 17 value=added agricultural processing.  For purposes of this
  1 18 subsection, "direct support" includes storage by public
  1 19 refrigerated warehouses for processors of value=added
  1 20 agricultural products.  Such fixtures shall not be considered
  1 21 "attached" whether owned directly by the processor or
  1 22 warehouse operator or by another who leases the fixture to the
  1 23 processor or warehouse operator.  This subsection paragraph
  1 24 shall not apply to fixtures used primarily for retail sale or
  1 25 display.
  1 26    b.  It is a concrete batch plant.  A "concrete batch plant"
  1 27 is the machinery, equipment, and fixtures used at a concrete
  1 28 mixing facility to process cement dry additive and other raw
  1 29 materials into concrete.
  1 30    c.  It is a hot mix asphalt facility.
  1 31    Sec. 3.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
  1 32 This Act, being deemed of immediate importance, takes effect
  1 33 upon enactment and applies retroactively to January 1, 2005,
  1 34 for assessment years beginning on or after that date.
  1 35                           EXPLANATION
  2  1    This bill provides that machinery, equipment, and fixtures
  2  2 used to process raw materials into concrete at a concrete
  2  3 mixing facility are not buildings, structures, and
  2  4 improvements and shall not be assessed and taxed as real
  2  5 property for purposes of property taxation.  The bill also
  2  6 provides that such machinery, equipment, and fixtures are not
  2  7 considered attached for purposes of property taxation.  The
  2  8 bill further provides that a hot mix asphalt facility is not
  2  9 considered attached for purposes of property taxation.
  2 10    The bill takes effect upon enactment and applies
  2 11 retroactively to assessment years beginning on or after
  2 12 January 1, 2005.
  2 13 LSB 5153HV 81
  2 14 sc:nh/je/5