Senate Study Bill 1292 SENATE FILE BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON QUIRMBACH) 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 2239SC 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 2239SC 83 2 4 rn/sc/8