House File 843 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HSB 205)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the property taxation of the facilities of
2 city=operated cable communications systems and including
3 effective and applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1815HV 81
6 mg/pj/5
PAG LIN
1 1 Section 1. Section 427.1, subsection 2, Code 2005, is
1 2 amended to read as follows:
1 3 2. MUNICIPAL AND MILITARY PROPERTY. The property of a
1 4 county, township, city, school corporation, levee district,
1 5 drainage district, or the Iowa national guard, when devoted to
1 6 public use and not held for pecuniary profit, except property
1 7 any of the following:
1 8 a. Property of a municipally owned electric utility held
1 9 under joint ownership and property of an electric power
1 10 facility financed under chapter 28F or 476A that shall be
1 11 subject to taxation under chapter 437A and facilities.
1 12 b. Facilities of a municipal utility that are used for the
1 13 provision of local exchange services pursuant to chapter 476,
1 14 but only to the extent such facilities are used to provide
1 15 such services, which shall be subject to taxation under
1 16 chapter 433, except that section 433.11 shall not apply.
1 17 c. Facilities operated by a city as a cable communications
1 18 system pursuant to section 364.3, but only to the extent such
1 19 facilities are used to provide cable communications services,
1 20 which shall be subject to taxation as provided in chapter 441,
1 21 at the following percentages of the assessed value of such
1 22 facilities used to provide cable communications services:
1 23 (1) If the facilities are first constructed after January
1 24 1, 2005, or facilities existing on January 1, 2005, are
1 25 expanded after January 1, 2005, one hundred percent of
1 26 assessed value.
1 27 (2) For facilities not described in subparagraph (1), the
1 28 following percentages apply:
1 29 (a) For assessment years beginning prior to January 1,
1 30 2010, zero percent of assessed value.
1 31 (b) For assessment years beginning January 1, 2010, but
1 32 prior to January 1, 2015, twenty=five percent of assessed
1 33 value.
1 34 (c) For assessment years beginning January 1, 2015, but
1 35 prior to January 1, 2020, fifty percent of assessed value.
2 1 (d) For assessment years beginning January 1, 2020, but
2 2 prior to January 1, 2025, seventy=five percent of assessed
2 3 value.
2 4 (e) For assessment years beginning January 1, 2025, and
2 5 succeeding assessment years, one hundred percent of assessed
2 6 value.
2 7 PARAGRAPH DIVIDED. The exemption for property owned by a
2 8 city or county also applies to property which is operated by a
2 9 city or county as a library, art gallery or museum,
2 10 conservatory, botanical garden or display, observatory or
2 11 science museum, or as a location for holding athletic
2 12 contests, sports or entertainment events, expositions,
2 13 meetings or conventions, or leased from the city or county for
2 14 any such purposes, or leased from the city or county by the
2 15 Iowa national guard or by a federal agency for the benefit of
2 16 the Iowa national guard when devoted for public use and not
2 17 for pecuniary profit.
2 18 PARAGRAPH DIVIDED. Food and beverages may be served at the
2 19 events or locations without affecting the exemptions, provided
2 20 the city has approved the serving of food and beverages on the
2 21 property if the property is owned by the city or the county
2 22 has approved the serving of food and beverages on the property
2 23 if the property is owned by the county.
2 24 Sec. 2. EFFECTIVE AND APPLICABILITY DATES. This Act,
2 25 being deemed of immediate importance, takes effect upon
2 26 enactment and applies retroactively to January 1, 2005, for
2 27 assessment years beginning on or after that date.
2 28 EXPLANATION
2 29 This bill provides that facilities of city=operated cable
2 30 communications systems are one of the exceptions to the
2 31 general property tax exemption for city=owned property. Thus
2 32 such cable systems are made subject to property tax under the
2 33 bill. However, total taxation takes place over 20 years for
2 34 such cable systems that are in existence on January 1, 2005,
2 35 and are not expanded. The schedule provides that 25 percent
3 1 of the value is taxed beginning January 1, 2010, 50 percent of
3 2 the value is taxed beginning January 1, 2015, 75 percent of
3 3 the value is taxed beginning January 1, 2020, and 100 percent
3 4 of the value is taxed beginning January 1, 2025. In the case
3 5 of facilities first constructed after January 1, 2005, or
3 6 expanded after January 1, 2005, the new facilities are taxed
3 7 at 100 percent.
3 8 The bill takes effect upon enactment and applies
3 9 retroactively to January 1, 2005, for assessment years
3 10 beginning on or after that date.
3 11 LSB 1815HV 81
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