Senate File 426 - Introduced





                                       SENATE FILE       
                                       BY  COMMITTEE ON LOCAL
                                           GOVERNMENT

                                       (SUCCESSOR TO SSB 1292)


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

                                      A BILL FOR

  1 An Act providing for the exclusion of costs associated with
  2    installation of a geothermal heating or cooling system from a
  3    residence's property value for purposes of property taxation
  4    and including an applicability date provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2239SV 83
  7 rn/sc/8

PAG LIN



  1  1    Section 1.  Section 441.21, subsection 8, Code 2009, is
  1  2 amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  d.  Notwithstanding paragraph "a", any new
  1  4 or retrofitted construction or installation of a geothermal
  1  5 heating or cooling system on property classified as
  1  6 residential shall not increase the actual, assessed, and
  1  7 taxable values of the property for ten full assessment years.
  1  8 In assessing and valuing the property for tax purposes, the
  1  9 assessor shall disregard any market value added by a
  1 10 geothermal heating or cooling system to a residential
  1 11 building.  For the purposes of this paragraph, to the extent
  1 12 market value would be increased by the addition of mechanical,
  1 13 electrical, plumbing, ductwork, or other equipment, labor, and
  1 14 expenses included in or required for the construction or
  1 15 installation of the geothermal system, they shall also be
  1 16 disregarded, as shall the proportionate value of any well
  1 17 field associated with the system and attributable to the
  1 18 owner.  The director of revenue shall adopt rules to implement
  1 19 this paragraph.
  1 20    Sec. 2.  APPLICABILITY DATE.  This Act applies to
  1 21 assessment years beginning on or after January 1, 2010.
  1 22                           EXPLANATION
  1 23    This bill provides that a geothermal heating or cooling
  1 24 system constructed or installed on new or existing residential
  1 25 property will not increase the value of the property for
  1 26 purposes of property taxation for 10 full assessment years.
  1 27 The bill directs the assessor to disregard any market value
  1 28 added by a geothermal heating or cooling system and, to the
  1 29 extent market value would be increased, to disregard
  1 30 mechanical, electrical, plumbing, ductwork, or other
  1 31 equipment, labor, and expenses included in or required for the
  1 32 construction or installation of the geothermal system.  The
  1 33 bill provides that the assessed value will also not include
  1 34 the proportionate value of any well field associated with the
  1 35 system and attributable to the owner.
  2  1    The bill applies to assessment years beginning on or after
  2  2 January 1, 2010.
  2  3 LSB 2239SV 83
  2  4 rn/sc/8