House
Study
Bill
105
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
eliminating
specified
provisions
relating
to
the
1
administration
of
the
replacement
tax
for
new
cogeneration
2
facilities.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2082YC
(3)
84
rn/nh
H.F.
_____
Section
1.
Section
437A.3,
subsection
1,
paragraph
b,
Code
1
2011,
is
amended
by
striking
the
paragraph.
2
Sec.
2.
Section
437A.3,
subsection
4,
paragraph
b,
Code
3
2011,
is
amended
by
striking
the
paragraph.
4
Sec.
3.
Section
437A.3,
subsection
11,
paragraph
b,
5
subparagraphs
(1)
and
(2),
Code
2011,
are
amended
to
read
as
6
follows:
7
(1)
An
electric
power
generating
plant
that
is
owned
by
8
or
leased
to
an
electric
company,
electric
cooperative,
or
9
municipal
utility,
or
any
other
taxpayer,
and
that
initially
10
generates
electricity
subject
to
replacement
generation
tax
11
under
section
437A.6
on
or
after
January
1,
2003.
12
(2)
An
electric
power
generating
plant
that
is
owned
by
13
or
leased
to
an
electric
company,
electric
cooperative,
or
14
municipal
utility,
or
any
other
taxpayer,
that
initially
15
generated
electricity
subject
to
replacement
generation
tax
16
under
section
437A.6
before
January
1,
2003,
and
that
is
sold,
17
leased,
or
transferred,
in
full
or
in
part,
on
or
after
January
18
1,
2003.
If
any
portion
of
an
electric
power
generating
plant
19
is
sold,
the
entire
plant
shall
be
treated
as
if
it
were
a
new
20
electric
power
generating
plant.
21
Sec.
4.
Section
437A.5,
subsection
1,
paragraph
c,
22
unnumbered
paragraph
3,
Code
2011,
is
amended
to
read
as
23
follows:
24
If
the
new
electric
power
generating
plant
is
part
of
a
25
cogeneration
facility
or
new
cogeneration
facility
,
the
natural
26
gas
delivery
rate
for
that
plant
shall
be
the
lesser
of
the
27
natural
gas
delivery
rate
established
in
this
paragraph
“c”
or
28
the
rate
per
therm
of
natural
gas
as
in
effect
at
the
time
of
29
the
initial
natural
gas
deliveries
to
the
plant
for
the
natural
30
gas
competitive
service
area
where
the
new
electric
power
31
generating
plant
is
located.
32
Sec.
5.
Section
437A.8,
subsection
4,
paragraph
d,
33
unnumbered
paragraph
2,
Code
2011,
is
amended
by
striking
the
34
unnumbered
paragraph.
35
-1-
LSB
2082YC
(3)
84
rn/nh
1/
4
H.F.
_____
Sec.
6.
Section
437A.14,
subsection
4,
paragraph
b,
Code
1
2011,
is
amended
by
striking
the
paragraph.
2
Sec.
7.
Section
437A.15,
subsection
7,
Code
2011,
is
amended
3
by
striking
the
subsection.
4
Sec.
8.
Section
437A.18,
Code
2011,
is
amended
to
read
as
5
follows:
6
437A.18
Tax
imposition.
7
An
annual
statewide
property
tax
of
three
cents
per
one
8
thousand
dollars
of
assessed
value
is
imposed
upon
all
property
9
described
in
sections
section
437A.16
and
437A.16A
on
the
10
assessment
date
of
January
1.
11
Sec.
9.
Section
437A.19,
subsection
1,
paragraph
a,
12
subparagraph
(8),
Code
2011,
is
amended
by
striking
the
13
subparagraph.
14
Sec.
10.
Section
437A.19,
subsection
2,
paragraph
e,
Code
15
2011,
is
amended
to
read
as
follows:
16
e.
In
addition
to
reporting
the
assessed
values
as
described
17
in
this
subsection
,
the
director,
on
or
before
October
31
of
18
each
assessment
year,
shall
also
report
to
the
department
of
19
management
and
to
the
auditor
of
each
county
the
taxable
value
20
of
taxpayer
property
as
of
January
1
of
such
assessment
year
21
for
each
local
taxing
district.
For
purposes
of
this
chapter
,
22
“taxable
value”
means
the
value
for
all
property
subject
to
23
the
replacement
tax
annually
determined
by
the
director,
by
24
dividing
the
estimated
annual
replacement
tax
liability
for
25
that
property
by
the
current
fiscal
prior
year’s
consolidated
26
taxing
district
rate
for
the
taxing
district
where
that
27
property
is
located,
then
multiplying
the
quotient
by
one
28
thousand.
A
taxpayer
who
paid
more
than
five
hundred
thousand
29
dollars
in
replacement
tax
in
the
previous
tax
year
or
who
30
believes
the
taxpayer’s
replacement
tax
liability
will
vary
31
more
than
ten
percent
from
the
previous
tax
year
shall
report
32
to
the
director
by
October
1
of
the
current
calendar
year,
on
33
forms
prescribed
by
the
director,
the
estimated
replacement
tax
34
liability
that
will
be
attributable
to
all
of
the
taxpayer’s
35
-2-
LSB
2082YC
(3)
84
rn/nh
2/
4
H.F.
_____
property
subject
to
replacement
tax
for
the
current
tax
1
year.
The
department
shall
utilize
the
estimated
replacement
2
tax
liability
as
reported
by
the
taxpayer
or
the
taxpayer’s
3
prior
year’s
replacement
tax
amounts
to
estimate
the
current
4
tax
year’s
taxable
value
for
that
property.
Furthermore,
a
5
taxpayer
who
has
a
new
major
addition
of
operating
property
6
which
is
put
into
service
for
the
first
time
in
the
current
7
calendar
year
shall
report
to
the
director
by
October
1
of
the
8
current
calendar
year,
or
at
the
time
the
major
addition
is
9
put
into
service,
whichever
time
is
later,
on
forms
prescribed
10
by
the
director,
the
cost
of
the
major
addition
and,
if
not
11
previously
reported,
shall
report
the
estimated
replacement
12
taxes
which
that
asset
will
generate
in
the
current
calendar
13
year.
For
the
purposes
of
computing
the
taxable
value
of
14
property
in
a
taxing
district,
the
taxing
district’s
share
of
15
the
estimated
replacement
tax
liability
shall
be
the
taxing
16
district’s
percentage
share
of
the
“assessed
value
allocated
17
by
property
tax
equivalent”
multiplied
by
the
total
estimated
18
replacement
tax.
“Assessed
value
allocated
by
property
tax
19
equivalent”
shall
be
determined
by
dividing
the
taxpayer’s
20
current
year
assessed
valuation
in
a
taxing
district
by
one
21
thousand,
and
then
multiplying
by
the
prior
year’s
consolidated
22
tax
rate.
23
Sec.
11.
REPEAL.
Section
437A.16A,
Code
2011,
is
repealed.
24
EXPLANATION
25
This
bill
deletes
provisions
relating
to
the
imposition
of
a
26
replacement
tax
on
electricity
and
natural
gas
providers
which
27
were
enacted
during
the
2010
Legislative
Session
in
Senate
File
28
2373.
29
The
deleted
provisions
include
adding
a
definition
of
a
new
30
cogeneration
facility
and
providing
a
means
for
allocating
31
the
assessed
value
of
a
new
cogeneration
facility
between
32
property
of
the
facility
that
is
subject
to
local
assessment
33
and
the
property
of
the
facility
that
is
subject
to
the
34
replacement
tax,
and
to
exempt
from
property
tax
the
value
35
-3-
LSB
2082YC
(3)
84
rn/nh
3/
4
H.F.
_____
of
the
property
subject
to
the
replacement
tax
by
applying
a
1
credit
representing
the
value
of
such
exempt
property
against
2
the
total
value
of
the
facility.
The
deleted
provisions
also
3
include
provisions
relating
to
determination
of
the
natural
4
gas
delivery
rate
applicable
to
new
cogeneration
facilities,
5
and
provisions
in
Code
section
437A.18
applying
the
statewide
6
property
tax
to
property
of
a
new
cogeneration
facility.
7
Additionally,
the
bill
deletes
a
provision
in
the
definition
8
of
an
electric
power
generating
plant
that
such
a
plant
may
be
9
owned
by
or
leased
to
“any
other
taxpayer”,
in
addition
to
an
10
electric
company,
electric
cooperative,
or
municipal
utility.
11
Also
deleted
is
a
mechanism
for
refunding
or
crediting
excess
12
replacement
taxes,
penalties,
and
interest
paid
into
the
13
property
tax
relief
fund
established
in
Code
section
426B.1
by
14
a
new
electric
power
generating
plant,
a
provision
applying
15
existing
provisions
regarding
claims
for
refunds
and
credits
16
contained
in
Code
section
437A.14
and
stating
that
the
director
17
of
revenue
shall
have
sole
discretion
regarding
whether
a
18
refund
will
be
paid
versus
a
credit
granted.
19
Further,
the
bill
deletes
outdated
provisions
establishing
20
a
utility
replacement
tax
task
force,
a
requirement
that
21
taxpayers
report
to
the
director
any
gas
or
transmission
22
property
that
had
been
acquired
at
a
cost
of
more
than
$1
23
million
and
disposed
of
in
the
preceding
calendar
year,
and
24
a
provision,
with
reference
to
determining
and
reporting
the
25
taxable
value
of
property
subject
to
the
replacement
tax,
26
that
calculations
will
utilize
the
current
fiscal
year’s
27
consolidated
taxing
district
rate
for
the
taxing
district
where
28
the
property
is
located,
rather
than
the
prior
fiscal
year’s
29
rate.
30
-4-
LSB
2082YC
(3)
84
rn/nh
4/
4