Senate File 479 - Introduced SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 214) 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 2108SV 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 operationconnected with, or in conjunction with, a publicly 1 9 owned sanitary landfillto 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 wastethat would otherwise be 1 12 collected by, or deposited with, a publicly owned sanitary 1 13 landfillin 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 2108SV 83 2 21 rn/sc:mg/14