House Study Bill 219 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON SWAIM)


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

                                      A BILL FOR

  1 An Act to eliminate an obsolete Code section reference in a
  2    utility replacement tax allocation of revenue requirement
  3    involving new major additions to taxpayer property.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2401HC 83
  6 lh/mg:sc/14

PAG LIN



  1  1    Section 1.  Section 437A.15, subsection 3, paragraph e,
  1  2 Code 2009, is amended to read as follows:
  1  3    e.  Notwithstanding the provisions of this section, if
  1  4 during the tax year a person who was not a taxpayer during the
  1  5 prior tax year acquires a new major addition, as defined in
  1  6 section 437A.3, subsection 18, paragraph "a", subparagraph
  1  7 (4), the replacement tax associated with that major addition
  1  8 shall be allocated, for that tax year, under this section in
  1  9 accordance with the general allocating formula on the basis of
  1 10 the general property tax equivalents established under
  1 11 paragraph "a" of this subsection, except that the levy rates
  1 12 established and reported to the department of management on or
  1 13 before June 30 following the tax year in which the major
  1 14 addition was acquired shall be applied to the prorated
  1 15 assessed value of the major addition and provided that section
  1 16 437A.19, subsection 2, paragraph "b", subparagraph (2), is in
  1 17 any event applicable.  For purposes of this paragraph,
  1 18 "prorated assessed value of the major addition" means the
  1 19 assessed value of the major addition as of January 1 of the
  1 20 year following the tax year in which the major addition was
  1 21 acquired multiplied by the percentage derived by dividing the
  1 22 number of months that the major addition existed during the
  1 23 tax year by twelve, counting any portion of a month as a full
  1 24 month.
  1 25                           EXPLANATION
  1 26    This bill strikes a reference to Code section 437A.19,
  1 27 subsection 2, paragraph "b", subparagraph (2), in a provision
  1 28 relating to allocation of utility replacement tax revenue.
  1 29 Subparagraph (2) of Code section 437A.19, subsection 2,
  1 30 paragraph "b", was stricken as a result of a rewrite of that
  1 31 provision in 2007 Iowa Acts, chapter 150, which made a variety
  1 32 of adjustments in the utility replacement tax law.
  1 33 LSB 2401HC 83
  1 34 lh/mg:sc/14