House File 228 



                                       HOUSE FILE       
                                       BY  FORD


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

                                      A BILL FOR

  1 An Act limiting a tax credit and tax exemption for
  2    pollution=control and recycling property connected to property
  3    used for the care and feeding of livestock, and providing for
  4    the Act's applicability.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2071HH 82
  7 da/es/88

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 19, Code 2007, is
  1  2 amended to read as follows:
  1  3    19.  POLLUTION CONTROL AND RECYCLING.  Pollution=control or
  1  4 recycling property as defined in this subsection shall be
  1  5 exempt from taxation to the extent provided in this
  1  6 subsection, upon compliance with the provisions of this
  1  7 subsection.
  1  8    a.  This exemption shall apply to new installations of
  1  9 pollution=control or recycling property beginning on January 1
  1 10 after the construction or installation of the property is
  1 11 completed.  This exemption shall apply beginning on January 1,
  1 12 1975, to existing pollution=control property if its
  1 13 construction or installation was completed after September 23,
  1 14 1970, and this exemption shall apply beginning January 1,
  1 15 1994, to recycling property.
  1 16    b.  This exemption shall be limited to the market value, as
  1 17 defined in section 441.21, of the pollution=control or
  1 18 recycling property.  If the pollution=control or recycling
  1 19 property is assessed with other property as a unit, this
  1 20 exemption shall be limited to the net market value added by
  1 21 the pollution=control or recycling property, determined as of
  1 22 the assessment date.
  1 23    c.  Application for this exemption shall be filed with the
  1 24 assessing authority not later than the first of February of
  1 25 the first year for which the exemption is requested, on forms
  1 26 provided by the department of revenue.
  1 27    (1)  The application shall describe and locate the specific
  1 28 pollution=control or recycling property to be exempted.
  1 29    (2)  The application for a specific pollution=control or
  1 30 recycling property shall be accompanied by a certificate of
  1 31 the department of natural resources certifying that the
  1 32 primary use of the pollution=control property is to control or
  1 33 abate pollution of any air or water of this state or to
  1 34 enhance the quality of any air or water of this state or, if
  1 35 the property is recycling property, that the primary use of
  2  1 the property is for recycling.
  2  2    d.  A taxpayer may seek judicial review of a determination
  2  3 of the department or, on appeal, of the environmental
  2  4 protection commission in accordance with the provisions of
  2  5 chapter 17A.
  2  6    e.  The environmental protection commission of the
  2  7 department of natural resources shall adopt rules relating to
  2  8 certification under this subsection and information to be
  2  9 submitted for evaluating pollution=control or recycling
  2 10 property for which a certificate is requested.  The department
  2 11 of revenue shall adopt any rules necessary to implement this
  2 12 subsection, including rules on identification and valuation of
  2 13 pollution=control or recycling property.  All rules adopted
  2 14 shall be subject to the provisions of chapter 17A.
  2 15    f.  For the purposes of this subsection, "pollution=control
  2 16 all of the following apply:
  2 17    (1)  (a)  "Pollution=control property" means personal
  2 18 property or improvements to real property, or any portion
  2 19 thereof, used primarily to control or abate pollution of any
  2 20 air or water of this state or used primarily to enhance the
  2 21 quality of any air or water of this state and "recycling
  2 22 property" means personal property or improvements to real
  2 23 property or any portion of the property, used primarily in the
  2 24 manufacturing process and resulting directly in the conversion
  2 25 of waste glass, waste plastic, wastepaper products, waste
  2 26 paperboard, or waste wood products into new raw materials or
  2 27 products composed primarily of recycled material.  In the
  2 28 event such property shall also serve other purposes or uses of
  2 29 productive benefit to the owner of the property, only such
  2 30 portion of the assessed valuation thereof as may reasonably be
  2 31 calculated to be necessary for and devoted to the control or
  2 32 abatement of pollution, to the enhancement of the quality of
  2 33 the air or water of this state, or for recycling shall be
  2 34 exempt from taxation under this subsection.
  2 35    (b)  "Pollution=control property" or "recycling property"
  3  1 does not include property used for purposes related to the
  3  2 care and feeding of livestock as defined in section 169C.1,
  3  3 except for property which is eligible for a family farm tax
  3  4 credit as provided in chapter 425A.  The exemption calculated
  3  5 for pollution=control property or recycling property used for
  3  6 the purpose of care and feeding of livestock and which is
  3  7 eligible for a family farm tax credit is limited to the first
  3  8 one hundred thousand dollars of the property's assessed value.
  3  9    (2)  For the purposes of this subsection, "pollution"
  3 10 "Pollution" means air pollution as defined in section 455B.131
  3 11 or water pollution as defined in section 455B.171.
  3 12    (3)  "Water of the state" means the water of the state as
  3 13 defined in section 455B.171.
  3 14    (4)  "Enhance the quality" means to diminish the level of
  3 15 pollutants below the air or water quality standards
  3 16 established by the environmental protection commission of the
  3 17 department of natural resources.
  3 18    Sec. 2.  APPLICABILITY.  This Act is applicable for tax
  3 19 years beginning on and after January 1, 2008.
  3 20                           EXPLANATION
  3 21    This bill amends Code section 427.1, which provides a
  3 22 number of exemptions from property taxation.  The section
  3 23 includes an exemption for certain types of pollution=control
  3 24 and recycling property as certified by the department of
  3 25 natural resources.  The bill limits this tax exemption for
  3 26 such property that is related to the care and feeding of
  3 27 livestock by requiring that the property used for the care and
  3 28 feeding of livestock must be eligible for a family farm tax
  3 29 credit under Code chapter 425A.  The bill also provides that
  3 30 the tax credit still available is limited to the first
  3 31 $100,000 of the property's assessed value.
  3 32    The bill is applicable for tax years beginning on and after
  3 33 January 1, 2008.
  3 34 LSB 2071HH 82
  3 35 da:nh/es/88