House File 228HOUSE 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=control2 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