Senate File 214 - Introduced





                                       SENATE FILE       
                                       BY  RIELLY


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

                                      A BILL FOR

  1 An Act relating to property tax exemption eligibility for methane
  2    gas conversion property and including an effective date and
  3    applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2108SS 83
  6 rn/sc:mg/14

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 29, paragraph a, Code
  1  2 2009, is amended to read as follows:
  1  3    a.  For purposes of this subsection, "methane gas
  1  4 conversion property" means personal property, real property,
  1  5 and improvements to real property, and machinery, equipment,
  1  6 and computers assessed as real property pursuant to section
  1  7 427A.1, subsection 1, paragraphs "e" and "j", used in an
  1  8 operation connected with, or in conjunction with, a publicly
  1  9 owned sanitary landfill to collect methane gas or other gases
  1 10 produced as a by=product of waste decomposition and to convert
  1 11 the gas to energy, or to collect waste that would otherwise be
  1 12 collected by, or deposited with, a publicly owned sanitary
  1 13 landfill in order to decompose the waste to produce methane
  1 14 gas or other gases and to convert the gas to energy.  However,
  1 15 property used to decompose the waste and convert the waste to
  1 16 gas is not eligible for this exemption.
  1 17    Sec. 2.  Section 437A.6, subsection 1, paragraph d, Code
  1 18 2009, is amended to read as follows:
  1 19    d.  Methane gas conversion property subject to section
  1 20 427.1, subsection 29, to the extent the property is used in
  1 21 connection with, or in conjunction with, a publicly owned
  1 22 sanitary landfill or used to collect waste that would
  1 23 otherwise be collected by, or deposited with, a publicly owned
  1 24 sanitary landfill.
  1 25    Sec. 3.  IMPLEMENTATION.  Section 25B.7 does not apply to
  1 26 the property tax exemption amended in this Act.
  1 27    Sec. 4.  EFFECTIVE AND APPLICABILITY DATES.
  1 28    1.  This Act takes effect January 1, 2010.
  1 29    2.  The section of this Act amending section 427.1,
  1 30 subsection 29, applies to assessment years beginning on or
  1 31 after January 1, 2010.
  1 32                           EXPLANATION
  1 33    This bill expands property tax exemption eligibility for
  1 34 methane gas conversion property.  Current law provides for an
  1 35 exemption applicable to specified methane gas conversion
  2  1 property that is used in an operation in connection with a
  2  2 publicly owned sanitary landfill to collect methane gas or an
  2  3 operation to collect waste for conversion to methane gas if
  2  4 such waste would otherwise be collected by or deposited with a
  2  5 publicly owned sanitary landfill.  The bill deletes the
  2  6 restriction that the methane gas conversion property must be
  2  7 used in connection with, or in lieu of collection by and
  2  8 deposit with, a publicly owned sanitary landfill.  The bill
  2  9 adds the restriction with reference to a current exemption
  2 10 from the replacement tax imposed on electric generation
  2 11 pursuant to Code section 437A.6, which has previously
  2 12 referenced the definition of methane gas conversion property
  2 13 which the bill modifies and expands.
  2 14    Code section 25B.7 does not apply to the expanded property
  2 15 tax exemption.  That Code section requires state funding to
  2 16 implement a property tax exemption.
  2 17    The bill takes effect January 1, 2010, and the expanded
  2 18 property tax exemption applies to assessment years beginning
  2 19 on or after that date.
  2 20 LSB 2108SS 83
  2 21 rn/sc:mg/14