Senate File 2023 - Introduced
SENATE FILE
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO SSB 3024)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the distribution to counties of certain
2 utility replacement tax revenues credited to the property tax
3 relief fund and providing an effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5681SV 82
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PAG LIN
1 1 Section 1. Section 426B.2, subsection 1, unnumbered
1 2 paragraph 2, Code 2007, is amended to read as follows:
1 3 1A. Moneys provided distributed to a county for property
1 4 tax relief in a fiscal year, excluding replacement taxes in
1 5 the property tax relief fund, in accordance with this
1 6 subsection section shall not be less than the amount provided
1 7 for property tax relief in the previous fiscal year.
1 8 Sec. 2. Section 426B.2, subsection 3, Code 2007, is
1 9 amended to read as follows:
1 10 3. The director of human services shall draw warrants on
1 11 the property tax relief fund, payable to the county treasurer
1 12 in the amount due to a county in accordance with subsection 1
1 13 and mail the warrants to the county auditors in July and
1 14 January of each year. Any replacement generation tax in the
1 15 property tax relief fund as of November 1 shall be paid to the
1 16 county treasurers in July and January of the fiscal year
1 17 beginning the following July 1.
1 18 Sec. 3. Section 426B.5, subsection 2, paragraphs b and h,
1 19 Code Supplement 2007, are amended to read as follows:
1 20 b. A risk pool is created in the property tax relief fund.
1 21 The pool shall consist of the moneys credited to the pool by
1 22 law, including but not limited to utility replacement
1 23 generation tax revenues credited to the pool pursuant to
1 24 section 437A.8 or 437A.15.
1 25 h. The total amount of risk pool assistance available for
1 26 distribution for a fiscal year shall be limited to the amount
1 27 available in the risk pool for a of the unencumbered and
1 28 unobligated balance of the risk pool as of February 1 of that
1 29 fiscal year. Any unencumbered and unobligated balance in the
1 30 risk pool at the close of a fiscal year shall remain in the
1 31 risk pool for distribution in the succeeding fiscal year.
1 32 Sec. 4. Section 437A.8, subsection 4, paragraph d, Code
1 33 2007, is amended to read as follows:
1 34 d. Notwithstanding paragraph "a", a taxpayer who owns or
1 35 leases a new electric power generating plant and who has no
2 1 other operating property in the state of Iowa except for
2 2 operating property directly serving the new electric power
2 3 generating plant as described in section 437A.16 shall pay the
2 4 replacement generation tax associated with the allocation of
2 5 the local amount to the county treasurer of the county in
2 6 which the local amount is located and shall remit the
2 7 remaining replacement generation tax, if any, to the director
2 8 according to paragraph "a" for remittance of the tax to county
2 9 treasurers. The director shall notify each taxpayer on or
2 10 before August 31 following a tax year of its remaining
2 11 replacement generation tax to be remitted to the director.
2 12 All remaining replacement generation tax revenues received by
2 13 the director shall be deposited in credited to the risk pool
2 14 of the property tax relief fund created in section 426B.1
2 15 426B.5, and shall be distributed as provided in section 426B.2
2 16 by law.
2 17 Sec. 5. Section 437A.15, subsection 3, paragraph f, Code
2 18 Supplement 2007, is amended to read as follows:
2 19 f. Notwithstanding the provisions of this section, if a
2 20 taxpayer is a municipal utility or a municipal owner of an
2 21 electric power facility financed under the provisions of
2 22 chapter 28F or 476A, the assessed value, other than the local
2 23 amount, of a new electric power generating plant shall be
2 24 allocated to each taxing district in which the municipal
2 25 utility or municipal owner is serving customers and has
2 26 electric meters in operation in the ratio that the number of
2 27 operating electric meters of the municipal utility or
2 28 municipal owner located in the taxing district bears to the
2 29 total number of operating electric meters of the municipal
2 30 utility or municipal owner in the state as of January 1 of the
2 31 tax year. If the municipal utility or municipal owner of an
2 32 electric power facility financed under the provisions of
2 33 chapter 28F or 476A has a new electric power generating plant
2 34 but the municipal utility or municipal owner has no operating
2 35 electric meters in this state, the municipal utility or
3 1 municipal owner shall pay the replacement generation tax
3 2 associated with the new electric power generating plant
3 3 allocation of the local amount to the county treasurer of the
3 4 county in which the local amount is located and shall remit
3 5 the remaining replacement generation tax, if any, to the
3 6 director at the times contained in section 437A.8, subsection
3 7 4, for remittance of the tax to the county treasurers. All
3 8 remaining replacement generation tax revenues received by the
3 9 director shall be deposited in credited to the risk pool of
3 10 the property tax relief fund created in section 426B.1 426B.5,
3 11 and shall be distributed as provided in section 426B.2 by law.
3 12 Sec. 6. EFFECTIVE DATE.
3 13 1. This Act, being deemed of immediate importance, takes
3 14 effect upon enactment.
3 15 2. Any replacement generation tax revenues deposited in
3 16 the property tax relief fund during the fiscal year beginning
3 17 July 1, 2007, and prior to the effective date of this Act
3 18 shall be credited to the risk pool of the property tax relief
3 19 fund created in section 426B.5 for distribution as provided by
3 20 law.
3 21 3. For purposes of distributing risk pool assistance for
3 22 the fiscal year beginning July 1, 2007, notwithstanding
3 23 section 426B.5, subsection 2, paragraph "d", the application
3 24 deadline for assistance shall be February 25, 2008, and the
3 25 risk pool board shall make its final decisions regarding
3 26 acceptance or rejection of applications on or before March 25,
3 27 2008.
3 28 EXPLANATION
3 29 This bill relates to the distribution to counties of
3 30 certain utility replacement tax revenues credited to the
3 31 property tax relief fund.
3 32 Under current law in Code chapter 437A, electrical power
3 33 generating plants are centrally assessed by the state for
3 34 property tax purposes and these property tax revenues are
3 35 distributed to counties using a formula that reflects the
4 1 consumers of the electricity in the taxing district. However,
4 2 under Code sections 437A.8 and 437A.15, when the owner of a
4 3 new electrical generating plant property either does not have
4 4 other operating property in the state except for property
4 5 directly serving the plant and there is excess revenue or does
4 6 not have operating electrical meters in the state, the
4 7 property tax revenues from the plant are deposited in the
4 8 property tax relief fund created in Code section 426B.1 and
4 9 distributed as provided in Code section 426B.2.
4 10 Under current law, moneys distributed from the property tax
4 11 relief fund in accordance with Code section 426B.2 are
4 12 allocated to counties using a three=factor formula reflecting
4 13 a county's proportion of the state's general population, the
4 14 state's total assessed property tax valuations in the previous
4 15 fiscal year, and all counties' base year expenditures for
4 16 mental health, mental retardation, and developmental
4 17 disabilities (MH/MR/DD) services for selected years in fiscal
4 18 year 1993=1994 or 1995=1996. The property tax relief fund
4 19 revenues distributed to counties are required to be credited
4 20 to county MH/MR/DD services funds to be used for such services
4 21 and county levies for MH/MR/DD services are reduced $1=for=$1
4 22 for the revenue credited.
4 23 The bill provides that the utility replacement tax revenues
4 24 deposited in the property tax relief fund are to be credited
4 25 to the risk pool in the fund and distributed in accordance
4 26 with law. Under current law in Code section 426B.5, moneys in
4 27 the risk pool are distributed to counties using basic
4 28 eligibility criteria formulas that reflect the counties'
4 29 compliance with reporting requirements, maximum use of
4 30 MH/MR/DD levy authority, and relatively low ending balances
4 31 for MH/MR/DD services funds. A county that meets the basic
4 32 eligibility criteria applies to the risk pool board for risk
4 33 pool assistance based on the need to continue support for
4 34 mandated MH/MR/DD services, avoid the need to reduce or
4 35 eliminate critical services or emergency services which
5 1 reduction or elimination would place consumers' or the public
5 2 health or safety at risk, or avoid the need to reduce or
5 3 eliminate services or other support provided to entire
5 4 disability populations or provided to maintain consumers in a
5 5 community setting. Moneys distributed from the risk pool are
5 6 required to be credited to the county MH/MR/DD services funds
5 7 and used for such services but there is not a levy reduction
5 8 required.
5 9 The bill also amends the risk pool provisions to provide
5 10 that the amount available for distribution from the risk pool
5 11 for a fiscal year is limited to the unencumbered and
5 12 unobligated balance of the risk pool as of February 1 of that
5 13 fiscal year.
5 14 The bill takes effect upon enactment and provides that
5 15 replacement generation tax revenues deposited in the property
5 16 tax relief fund during fiscal year 2007=2008 prior to the
5 17 bill's effective date are to be credited to the risk pool for
5 18 distribution in accordance with law. For purposes of
5 19 distributing risk pool assistance for fiscal year 2007=2008,
5 20 the effective date provision extends the application deadline
5 21 for assistance by 30 calendar days to February 25, 2008, and
5 22 extends the risk pool board deadline for its final decisions
5 23 regarding acceptance or rejection of applications by 30
5 24 calendar days to March 25, 2008.
5 25 LSB 5681SV 82
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