House File 443 - Introduced HOUSE FILE 443 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 73) A BILL FOR An Act providing for the future repeal of the state board of 1 tax review, providing for appeals to the director of revenue 2 for certain tax matters and modifying the powers and duties 3 of the director of revenue, and including effective date and 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1383HV (3) 86 mm/sc

H.F. 443 DIVISION I 1 FUTURE REPEAL OF 2 STATE BOARD OF TAX REVIEW —— TRANSITION 3 Section 1. Section 421.1, Code 2015, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 6. Future repeal. 6 a. Notwithstanding subsection 5 or any other provision of 7 law to the contrary, a party shall not appeal to the state 8 board, nor shall the state board accept for review, any 9 decision, order, directive, or assessment of the director of 10 revenue or the department on or after the effective date of 11 this division of this Act. 12 b. This section is repealed upon the occurrence of one of 13 the following, whichever is earlier: 14 (1) The final disposition by the state board of all cases 15 pending before the board on the effective date of this division 16 of this Act. The chairperson of the board shall notify the 17 Iowa Code editor upon the occurrence of this condition. 18 (2) July 1, 2016. 19 Sec. 2. EFFECTIVE UPON ENACTMENT. This division of this 20 Act, being deemed of immediate importance, takes effect upon 21 enactment. 22 DIVISION II 23 CORRESPONDING CHANGES 24 Sec. 3. Section 68B.35, subsection 2, paragraph e, Code 25 2015, is amended to read as follows: 26 e. Members of the state banking council, the ethics and 27 campaign disclosure board, the credit union review board, the 28 economic development authority, the employment appeal board, 29 the environmental protection commission, the health facilities 30 council, the Iowa finance authority, the Iowa public employees’ 31 retirement system investment board, the board of the Iowa 32 lottery authority, the natural resource commission, the board 33 of parole, the petroleum underground storage tank fund board, 34 the public employment relations board, the state racing and 35 -1- LSB 1383HV (3) 86 mm/sc 1/ 40

H.F. 443 gaming commission, the state board of regents, the tax review 1 board, the transportation commission, the office of consumer 2 advocate, the utilities board, the Iowa telecommunications 3 and technology commission, and any full-time members of other 4 boards and commissions as defined under section 7E.4 who 5 receive an annual salary for their service on the board or 6 commission. The Iowa ethics and campaign disclosure board 7 shall conduct an annual review to determine if members of any 8 other board, commission, or authority should file a statement 9 and shall require the filing of a statement pursuant to rules 10 adopted pursuant to chapter 17A . 11 Sec. 4. Section 421.17, subsection 19, paragraph b, Code 12 2015, is amended to read as follows: 13 b. (1) The provisions of sections 17A.10 to 17A.18A 14 relating to contested cases shall not apply to any matters 15 involving the equalization of valuations of classes of property 16 as authorized by this chapter and chapter 441 . 17 (2) (a) This exemption from the provisions of sections 18 17A.10 to 17A.18A shall not apply to a hearing before the state 19 board of tax review. 20 (b) This subparagraph is repealed July 1, 2016. 21 (3) This exemption from the provisions of sections 17A.10 22 to 17A.18A shall not apply to a hearing before the director as 23 provided in section 441.49, subsection 5. 24 Sec. 5. Section 421.60, subsection 4, paragraph a, 25 unnumbered paragraph 1, Code 2015, is amended to read as 26 follows: 27 A prevailing taxpayer in an administrative hearing or a 28 court proceeding related to the determination, collection, or 29 refund of a tax, penalty, or interest may be awarded reasonable 30 litigation costs by the department , state board of tax review, 31 or a court , that are incurred subsequent to the issuance of 32 the notice of assessment or denial of claim for refund in the 33 proceeding, based upon the following: 34 Sec. 6. Section 425.7, subsection 3, Code 2015, is amended 35 -2- LSB 1383HV (3) 86 mm/sc 2/ 40

H.F. 443 to read as follows: 1 3. a. If the director department of revenue determines 2 that a claim for homestead credit has been allowed by the board 3 of supervisors which is not justifiable under the law and not 4 substantiated by proper facts, the director department may, at 5 any time within thirty-six months from July 1 of the year in 6 which the claim is allowed, set aside the allowance. Notice 7 of the disallowance shall be given to the county auditor of 8 the county in which the claim has been improperly granted and 9 a written notice of the disallowance shall also be addressed 10 to the claimant at the claimant’s last known address. The 11 claimant or board of supervisors may appeal to the state board 12 of tax review pursuant to section 421.1, subsection 5 13 director of revenue within thirty days from the date of the 14 notice of disallowance . The director shall grant a hearing 15 and if, upon the hearing, the director determines that the 16 disallowance was incorrect, the director shall set aside the 17 disallowance. The director shall notify the claimant and 18 the board of supervisors of the result of the hearing. The 19 claimant or the board of supervisors may seek judicial review 20 of the action of the state board of tax review director of 21 revenue in accordance with chapter 17A . 22 b. If a claim is disallowed by the director department 23 of revenue and not appealed to the state board of tax review 24 director of revenue or appealed to the state board of tax 25 review director of revenue and thereafter upheld upon final 26 resolution, including any judicial review, any amounts of 27 credits allowed and paid from the homestead credit fund 28 including the penalty, if any, become a lien upon the property 29 on which credit was originally granted, if still in the hands 30 of the claimant, and not in the hands of a bona fide purchaser, 31 and any amount so erroneously paid including the penalty, if 32 any, shall be collected by the county treasurer in the same 33 manner as other taxes and the collections shall be returned to 34 the department of revenue and credited to the homestead credit 35 -3- LSB 1383HV (3) 86 mm/sc 3/ 40

H.F. 443 fund. The director of revenue may institute legal proceedings 1 against a homestead credit claimant for the collection of 2 payments made on disallowed credits and the penalty, if any. 3 If a person makes a false claim or affidavit with fraudulent 4 intent to obtain the homestead credit, the person is guilty 5 of a fraudulent practice and the claim shall be disallowed in 6 full. If the credit has been paid, the amount of the credit 7 plus a penalty equal to twenty-five percent of the amount of 8 credit plus interest, at the rate in effect under section 9 421.7 , from the time of payment shall be collected by the 10 county treasurer in the same manner as other property taxes, 11 penalty, and interest are collected and when collected shall 12 be paid to the director of revenue. If a homestead credit is 13 disallowed and the claimant failed to give written notice to 14 the assessor as required by section 425.2 when the property 15 ceased to be used as a homestead by the claimant, a civil 16 penalty equal to five percent of the amount of the disallowed 17 credit is assessed against the claimant. 18 Sec. 7. Section 425.17, subsection 3, Code 2015, is amended 19 to read as follows: 20 3. “Gross rent” means rental paid at arm’s length for the 21 right of occupancy of a homestead or manufactured or mobile 22 home, including rent for space occupied by a manufactured or 23 mobile home not to exceed one acre. If the director department 24 of revenue determines that the landlord and tenant have 25 not dealt with each other at arm’s length, and the director 26 department of revenue is satisfied that the gross rent charged 27 was excessive, the director department shall adjust the gross 28 rent to a reasonable amount as determined by the director 29 department . 30 Sec. 8. Section 425.18, Code 2015, is amended to read as 31 follows: 32 425.18 Right to file a claim. 33 The right to file a claim for reimbursement or credit under 34 this division may be exercised by the claimant or on behalf 35 -4- LSB 1383HV (3) 86 mm/sc 4/ 40

H.F. 443 of a claimant by the claimant’s legal guardian, spouse, or 1 attorney, or by the executor or administrator of the claimant’s 2 estate. If a claimant dies after having filed a claim for 3 reimbursement for rent constituting property taxes paid, the 4 amount of the reimbursement may be paid to another member of 5 the household as determined by the director department of 6 revenue . If the claimant was the only member of the household, 7 the reimbursement may be paid to the claimant’s executor or 8 administrator, but if neither is appointed and qualified 9 within one year from the date of the filing of the claim, the 10 reimbursement shall escheat to the state. If a claimant dies 11 after having filed a claim for credit for property taxes due, 12 the amount of credit shall be paid as if the claimant had not 13 died. 14 Sec. 9. Section 425.26, subsection 2, Code 2015, is amended 15 to read as follows: 16 2. The director department may require any additional proof 17 necessary to support a claim. 18 Sec. 10. Section 425.27, Code 2015, is amended to read as 19 follows: 20 425.27 Audit —— recalculation or denial —— appeals . 21 If on the audit of a claim for credit or reimbursement 22 under this division , the director department of revenue 23 determines the amount of the claim to have been incorrectly 24 calculated or that the claim is not allowable, the director 25 department shall recalculate the claim and notify the claimant 26 of the recalculation or denial and the reasons for it. The 27 recalculation of the claim shall be final unless appealed to 28 the director within thirty days from the date of notice of 29 recalculation or denial. The director shall grant a hearing, 30 and upon hearing determine the correct claim, if any, and 31 notify the claimant of the decision by mail. The director 32 department of revenue shall not adjust a claim after three 33 years from October 31 of the year in which the claim was filed. 34 If the claim for reimbursement has been paid, the amount may 35 -5- LSB 1383HV (3) 86 mm/sc 5/ 40

H.F. 443 be recovered by assessment in the same manner that income 1 taxes are assessed under sections 422.26 and 422.30 . If the 2 claim for credit has been paid, the director department of 3 revenue shall give notification to the claimant and the county 4 treasurer of the recalculation or denial of the claim and the 5 county treasurer shall proceed to collect the tax owed in 6 the same manner as other property taxes due and payable are 7 collected, if the property on which the credit was granted 8 is still owned by the claimant, and repay the amount to 9 the director upon collection. If the property on which the 10 credit was granted is not owned by the claimant, the amount 11 may be recovered from the claimant by assessment in the same 12 manner that income taxes are assessed under sections 422.26 13 and 422.30 . The recalculation of the claim decision of the 14 director shall be final unless appealed as provided in section 15 425.31 . Section 422.70 is applicable with respect to this 16 division . 17 Sec. 11. Section 425.29, Code 2015, is amended to read as 18 follows: 19 425.29 False claim —— penalty. 20 A person who makes a false affidavit for the purpose 21 of obtaining credit or reimbursement provided for in this 22 division or who knowingly receives the credit or reimbursement 23 without being legally entitled to it or makes claim for the 24 credit or reimbursement in more than one county in the state 25 without being legally entitled to it is guilty of a fraudulent 26 practice. The claim for credit or reimbursement shall be 27 disallowed in full and if the claim has been paid the amount 28 shall be recovered in the manner provided in section 425.27 . 29 The director department of revenue shall send a notice of 30 disallowance of the claim. 31 Sec. 12. Section 425.31, Code 2015, is amended to read as 32 follows: 33 425.31 Appeals. 34 Any person aggrieved by an act or decision of the director 35 -6- LSB 1383HV (3) 86 mm/sc 6/ 40

H.F. 443 of revenue or the department of revenue under this division 1 shall have the same rights of appeal and review as provided 2 in sections 421.1 and section 423.38 and the rules of the 3 department of revenue. 4 Sec. 13. Section 426A.6, Code 2015, is amended to read as 5 follows: 6 426A.6 Setting aside allowance. 7 If the director department of revenue determines that a 8 claim for military service tax exemption has been allowed by a 9 board of supervisors which is not justifiable under the law and 10 not substantiated by proper facts, the director department may, 11 at any time within thirty-six months from July 1 of the year in 12 which the claim is allowed, set aside the allowance. Notice 13 of the disallowance shall be given to the county auditor of 14 the county in which the claim has been improperly granted and 15 a written notice of the disallowance shall also be addressed 16 to the claimant at the claimant’s last known address. The 17 claimant or the board of supervisors may appeal to the state 18 board of tax review pursuant to section 421.1, subsection 5 19 director of revenue within thirty days from the date of the 20 notice of disallowance. The director shall grant a hearing 21 and if, upon the hearing, the director determines that the 22 disallowance was incorrect, the director shall set aside 23 the disallowance. The director shall notify the claimant 24 and the board of supervisors of the result of the hearing . 25 The claimant or the board of supervisors may seek judicial 26 review of the action of the state board of tax review director 27 of revenue in accordance with chapter 17A . If a claim is 28 disallowed by the director department of revenue and not 29 appealed to the state board of tax review director of revenue 30 or appealed to the state board of tax review director of 31 revenue and thereafter upheld upon final resolution, including 32 judicial review, the credits allowed and paid from the general 33 fund of the state become a lien upon the property on which 34 the credit was originally granted, if still in the hands of 35 -7- LSB 1383HV (3) 86 mm/sc 7/ 40

H.F. 443 the claimant and not in the hands of a bona fide purchaser, 1 the amount so erroneously paid shall be collected by the 2 county treasurer in the same manner as other taxes, and the 3 collections shall be returned to the department of revenue 4 and credited to the general fund of the state. The director 5 of revenue may institute legal proceedings against a military 6 service tax exemption claimant for the collection of payments 7 made on disallowed exemptions. 8 Sec. 14. Section 426C.7, Code 2015, is amended to read as 9 follows: 10 426C.7 Audit —— recalculation or denial. 11 1. If on the audit of a credit provided under this chapter , 12 the director department of revenue determines the amount of the 13 credit to have been incorrectly calculated or that the credit 14 is not allowable, the director department shall recalculate the 15 credit and notify the claimant and the county auditor of the 16 recalculation or denial and the reasons for it. The director 17 department shall not adjust a credit after three years from 18 October 31 of the year in which the claim for the credit was 19 filed. If the credit has been paid, the director department 20 shall give notification to the claimant, the county treasurer, 21 and the applicable assessor of the recalculation or denial of 22 the credit and the county treasurer shall proceed to collect 23 the tax owed in the same manner as other property taxes due 24 and payable are collected, if the parcel or property unit for 25 which the credit was allowed is still owned by the claimant. 26 If the parcel or property unit for which the credit was allowed 27 is not owned by the claimant, the amount may be recovered from 28 the claimant by assessment in the same manner that income taxes 29 are assessed under sections 422.26 and 422.30 . The amount of 30 such erroneous credit, when collected, shall be deposited in 31 the fund. 32 2. The claimant or board of supervisors may appeal any 33 decision of the director department of revenue to the state 34 board of tax review pursuant to section 421.1, subsection 5 35 -8- LSB 1383HV (3) 86 mm/sc 8/ 40

H.F. 443 director of revenue within thirty days from the date of the 1 notice of the recalculation or denial provided to the claimant 2 and county auditor . The director shall grant a hearing, and 3 upon hearing the director shall determine the correct credit, 4 if any, and notify the claimant, board of supervisors, county 5 auditor, and county treasurer of the decision by mail. The 6 claimant , or the board of supervisors , or the director of 7 revenue may seek judicial review of the action of the state 8 board of tax review director of revenue in accordance with 9 chapter 17A . 10 Sec. 15. Section 426C.8, Code 2015, is amended to read as 11 follows: 12 426C.8 False claim —— penalty. 13 A person who makes a false claim for the purpose of obtaining 14 a credit provided for in this chapter or who knowingly receives 15 the credit without being legally entitled to it is guilty of a 16 fraudulent practice. The claim for a credit of such a person 17 shall be disallowed and if the credit has been paid the amount 18 shall be recovered in the manner provided in section 426C.7 . 19 In such cases, the director department of revenue shall send a 20 notice of disallowance of the credit. 21 Sec. 16. Section 428.28, Code 2015, is amended to read as 22 follows: 23 428.28 Annual report by utility. 24 1. Every individual, partnership, corporation, or 25 association operating for profit, waterworks, other than 26 waterworks taxed under chapter 437B , or gasworks or pipelines 27 other than natural gas pipelines permitted pursuant to 28 chapter 479 , annually on or before May 1 of each calendar 29 year, shall make a report on blanks to be provided by the 30 department of revenue of all of the property owned by such 31 individual, partnership, corporation, or association within the 32 incorporated limits of any city in the state, and give such 33 other information as the director department of revenue shall 34 require. 35 -9- LSB 1383HV (3) 86 mm/sc 9/ 40

H.F. 443 2. Every individual, partnership, corporation, or 1 association which operates a public utility on a nonprofit 2 basis other than a utility subject to tax under chapter 437A 3 or chapter 437B , as defined in section 428.24 shall annually, 4 on or before May 1 of each calendar year, make a report on 5 blanks to be provided by the department of revenue of all of 6 the property owned by the individual, partnership, corporation, 7 or association within the incorporated limits of any city in 8 the state, and give other information the director department 9 of revenue requires. 10 Sec. 17. Section 428.29, Code 2015, is amended to read as 11 follows: 12 428.29 Assessment and certification. 13 The director department of revenue shall on or before 14 October 31 each year proceed to determine, upon the basis 15 of the data required in the report under section 428.28 and 16 any other information the director department may obtain, 17 the actual value of all property, subject to the director’s 18 department’s jurisdiction, of said individual, partnership, 19 corporation, or association, and shall make assessments upon 20 the taxable value of the property, as provided by section 21 441.21 . The director department of revenue shall, on or before 22 October 31, certify to the county auditor of every county in 23 the state the valuations fixed for assessment upon all such 24 property in each and every taxing district in each county by 25 the department of revenue. This valuation shall then be spread 26 upon the books in the same manner as other valuations fixed 27 by the department of revenue upon property assessed under the 28 department’s jurisdiction. 29 Sec. 18. Section 429.1, Code 2015, is amended to read as 30 follows: 31 429.1 Notice of assessment. 32 The director department of revenue shall, at the time of 33 making the assessment of property as provided in chapters 428 , 34 433 , 434 , 437 , and 438 , inform the person assessed, by mail, 35 -10- LSB 1383HV (3) 86 mm/sc 10/ 40

H.F. 443 of the valuation put upon the taxpayer’s property. The notice 1 shall contain a notice of the taxpayer’s right of appeal to the 2 state board of tax review director of revenue as provided in 3 section 429.2 . 4 Sec. 19. Section 429.2, Code 2015, is amended to read as 5 follows: 6 429.2 Appeal. 7 1. Notwithstanding the provisions of chapter 17A , the The 8 taxpayer shall have thirty days from the date of the notice of 9 assessment to appeal the assessment to the state board of tax 10 review director of revenue . Thereafter, the proceedings before 11 the state board of tax review director of revenue shall conform 12 to the provisions of subsection 2 , section 421.1, subsection 13 5 , and chapter 17A . 14 2. The following rules shall apply to the appeal proceedings 15 in addition to those stated in section 421.1, subsection 5 , and 16 chapter 17A : 17 a. The department’s assessment shall be presumed correct 18 and the burden of proof shall be on the taxpayer with respect 19 to all issues raised on appeal, including any challenge of the 20 director’s department’s valuation. 21 b. The burden of proof must be carried by a preponderance of 22 the evidence. 23 c. The board director of revenue shall consider all evidence 24 and witnesses offered by the taxpayer and the department , 25 including , but not limited to , evidence relating to the proper 26 valuation of the property involved. 27 d. The board director of revenue shall make an independent 28 determination of the value of the property based solely upon 29 its the director’s review of the evidence presented. 30 e. Upon the request of a party , the board director of 31 revenue shall set the case for hearing within one year of 32 the date of the request, unless for good cause shown, by 33 application and ruling thereon after notice and not ex parte, 34 the hearing date is continued by the board director of revenue . 35 -11- LSB 1383HV (3) 86 mm/sc 11/ 40

H.F. 443 Sec. 20. Section 429.3, Code 2015, is amended to read as 1 follows: 2 429.3 Judicial review. 3 Judicial review of the action of the state board of tax 4 review director of revenue may be sought by the taxpayer or the 5 director of revenue in accordance with the terms of chapter 6 17A . 7 Sec. 21. Section 433.1, unnumbered paragraph 1, Code 2015, 8 is amended to read as follows: 9 Every telegraph and telephone company operating a line in 10 this state shall, on or before the first day of May in each 11 year, furnish to the director department of revenue a statement 12 verified by its president or secretary showing: 13 Sec. 22. Section 433.2, Code 2015, is amended to read as 14 follows: 15 433.2 Additional statement. 16 Upon the receipt of the statements required in section 433.1 17 from the several companies, the director department of revenue 18 shall examine the statements. If the director department deems 19 the statements insufficient and that further information is 20 requisite, the director department shall require the officer 21 making the statements to make such other or further statement 22 as the director department may desire. 23 Sec. 23. Section 433.3, Code 2015, is amended to read as 24 follows: 25 433.3 Failure to make statement. 26 In case of failure or refusal of any company to make out or 27 deliver to the director department of revenue the statements 28 required in section 433.1 , such company shall forfeit and pay 29 to the state one hundred dollars for each day such report is 30 delayed beyond the first day of May, to be sued and recovered 31 in any proper form of action in the name of the state, and on 32 the relation of the director of revenue, and such penalty, when 33 collected, shall be paid into the general fund of the state. 34 Sec. 24. Section 433.4, subsection 1, Code 2015, is amended 35 -12- LSB 1383HV (3) 86 mm/sc 12/ 40

H.F. 443 to read as follows: 1 1. The director department of revenue shall on or before 2 October 31 each year, find the actual value of the property of 3 telegraph and telephone companies in this state that is used 4 by the companies in the transaction of telegraph and telephone 5 business, taking into consideration the information obtained 6 from the statements required, and any further information the 7 director department can obtain, using the same as a means for 8 determining the actual value of the property of the companies 9 within this state. The director department shall also take 10 into consideration the valuation of all property of the 11 companies, including franchises and the use of the property 12 in connection with lines outside the state, and making these 13 deductions as may be necessary on account of extra value of 14 property outside the state as compared with the value of 15 property in the state, in order that the actual value of the 16 property of the company within this state may be ascertained. 17 The assessment shall include all property of every kind 18 and character whatsoever, real, personal, or mixed, used by 19 the companies in the transaction of telegraph and telephone 20 business. The property so included in the assessment shall not 21 be taxed in any other manner than as provided in this chapter . 22 Sec. 25. Section 433.5, Code 2015, is amended to read as 23 follows: 24 433.5 Actual value per mile —— exemption value per mile. 25 1. The director department of revenue shall ascertain the 26 actual value per mile of the property of each company within 27 this state by dividing the total actual value, as ascertained 28 under section 433.4, subsection 1 , by the number of miles of 29 line of such company within the state, and the result shall be 30 deemed and held to be the actual value per mile of line of the 31 property of such company within this state. 32 2. The director department of revenue shall ascertain the 33 exemption value per mile of the property of each company within 34 this state by dividing the amount of the exemption for that 35 -13- LSB 1383HV (3) 86 mm/sc 13/ 40

H.F. 443 company determined under section 433.4, subsection 2 , by the 1 number of miles of line of such company within the state, and 2 the result shall be deemed and held to be the exemption value 3 per mile of line for that company. 4 Sec. 26. Section 433.7, Code 2015, is amended to read as 5 follows: 6 433.7 Hearing. 7 At the time of determination of value by the director 8 department of revenue, any company interested shall have the 9 right to appear, by its officers or agents, before the director 10 department of revenue and be heard on the question of the 11 valuation of its property for taxation. 12 Sec. 27. Section 433.8, Code 2015, is amended to read as 13 follows: 14 433.8 Assessment in each county —— how certified. 15 The director department of revenue shall, for the purpose 16 of determining what amount shall be assessed to each company 17 in each county of the state into which the line of the said 18 company extends, certify to the several county auditors of the 19 respective counties into, over, or through which said line 20 extends the number of miles of line in the county for that 21 company, the actual value per mile of line for that company, 22 and the exemption value per mile of line for that company. 23 Sec. 28. Section 433.9, Code 2015, is amended to read as 24 follows: 25 433.9 Entry of certificate. 26 At the first meeting of the board of supervisors held after 27 the certification made under section 433.8 is received by 28 the county auditor, the board shall cause such certification 29 to be entered in its minute book, and make and enter therein 30 an order stating the length of the lines, the actual value 31 of the property, and the exempted value of the property of 32 each of said companies situated in each city, township, or 33 lesser taxing district in its county, as fixed by the director 34 department of revenue. The value certified by the director 35 -14- LSB 1383HV (3) 86 mm/sc 14/ 40

H.F. 443 department of revenue, following application of the percentage 1 of actual value under section 441.21 , and following the 2 application of the exemption value certified by the director 3 department of revenue, shall constitute the taxable value 4 of said property for taxing purposes, and the taxes on said 5 property when collected by the county treasurer shall be 6 disposed of as other taxes on real estate. The county auditor 7 shall transmit a copy of said order to the council or trustees 8 of each city or township in which the lines of said company 9 extend. 10 Sec. 29. Section 434.2, unnumbered paragraph 1, Code 2015, 11 is amended to read as follows: 12 On or before October 31 each year, the director department 13 of revenue shall assess all the property of each railway 14 corporation in the state, excepting the lands, lots, and other 15 real estate belonging thereto not used in the operation of any 16 railway, and excepting railway bridges across the Mississippi 17 and Missouri rivers, and excepting grain elevators; and for 18 the purpose of making such assessment its president, vice 19 president, general manager, general superintendent, receiver, 20 or such other officer as the director department of revenue 21 may designate, shall, on or before the first day of April 22 in each year, furnish the department of revenue a verified 23 statement showing in detail for the year ended December 31 next 24 preceding: 25 Sec. 30. Section 434.2, subsection 8, Code 2015, is amended 26 to read as follows: 27 8. Any and all other movable property owned by said railway 28 within the state, classified and scheduled in such manner as 29 may be required by the director department of revenue. 30 Sec. 31. Section 434.12, Code 2015, is amended to read as 31 follows: 32 434.12 Refusal to obey. 33 If any railway company shall fail or refuse to obey or 34 conform to the rules, regulations, method, and requirements 35 -15- LSB 1383HV (3) 86 mm/sc 15/ 40

H.F. 443 so made or prescribed by the director of revenue under the 1 provisions of sections 434.7 to 434.11 or to make the reports 2 therein provided, the director department of revenue shall 3 proceed to assess the property of such railway company so 4 failing or refusing, according to the best information 5 obtainable, and shall then add to the taxable valuation of such 6 railway company twenty-five percent thereof, which valuation 7 and penalty shall be separately shown, and together shall 8 constitute the assessment for that year. 9 Sec. 32. Section 434.14, Code 2015, is amended to read as 10 follows: 11 434.14 Amended statement. 12 The director department of revenue may demand, in writing, 13 detailed, explanatory, and amended statements of any of the 14 items mentioned in section 434.2 , or any other items deemed by 15 the director department important, to be furnished the director 16 department by such railway corporation within thirty days 17 from such demand, in such form as the director department may 18 designate, which shall be verified as required for the original 19 statement. The returns, both original and amended, shall show 20 such other facts as the director department , in writing, shall 21 require. 22 Sec. 33. Section 434.15, unnumbered paragraph 1, Code 2015, 23 is amended to read as follows: 24 The said property shall be valued at its actual value, and 25 the assessments shall be made upon the taxable value of the 26 entire railway within the state, except as otherwise provided, 27 and the actual value so ascertained shall be assessed as 28 provided by section 441.21 , and shall include the right-of-way, 29 roadbed, bridges, culverts, rolling stock, depots, station 30 grounds, shops, buildings, gravel beds, and all other property, 31 real and personal, exclusively used in the operation of such 32 railway. In assessing said railway and its equipments, the 33 director department of revenue shall take into consideration 34 the gross earnings per mile for the year ending January 1, 35 -16- LSB 1383HV (3) 86 mm/sc 16/ 40

H.F. 443 preceding, and any and all other matters necessary to enable 1 the director department to make a just and equitable assessment 2 of said railway property. If a part of any railway is without 3 this state, then, in estimating the value of its rolling stock 4 and movable property, the director department shall take into 5 consideration the proportion which the business of that part 6 of the railway lying within the state bears to the business of 7 the railway without this state. 8 Sec. 34. Section 434.16, Code 2015, is amended to read as 9 follows: 10 434.16 Assessment of sleeping and dining cars. 11 The director department of revenue shall, at the time of 12 the assessment of other railway property for taxation, assess 13 for taxation the average number of sleeping and dining cars 14 as provided in section 434.6 so used by such corporation each 15 month and the assessed value of said cars shall bear the same 16 proportion to the entire value thereof that the monthly average 17 number of miles such cars have been run or operated within 18 the state shall bear to the monthly average number of miles 19 such cars have been used or operated within and without the 20 state. Such valuation shall be in the same ratio as that of 21 the property of individuals, and shall be added to the assessed 22 valuation of the corporation, fixed under section 434.15 . 23 Sec. 35. Section 434.17, Code 2015, is amended to read as 24 follows: 25 434.17 Certification to county auditors. 26 On or before October 31 each year, the director department of 27 revenue shall transmit to the county auditor of each county, 28 through and into which any railway may extend, a statement 29 showing the length of the main track within the county, and 30 the assessed value per mile of the same, as fixed by a ratable 31 distribution per mile of the assessed valuation of the whole 32 property. 33 Sec. 36. Section 434.22, Code 2015, is amended to read as 34 follows: 35 -17- LSB 1383HV (3) 86 mm/sc 17/ 40

H.F. 443 434.22 Levy and collection of tax. 1 At the first meeting of the board of supervisors held after 2 said statement is received by the county auditor, the board 3 shall cause the same to be entered on its minute book, and make 4 and enter in the minute book an order stating the length of 5 the main track and the assessed value of each railway lying in 6 each city, township, or lesser taxing district in its county, 7 through or into which the railway extends, as fixed by the 8 director department of revenue, which shall constitute the 9 taxable value of the property for taxing purposes; and the 10 taxes on the property, when collected by the county treasurer, 11 shall be disposed of as other taxes. The county auditor shall 12 transmit a copy of the order to the council or trustees of the 13 city or township. 14 Sec. 37. Section 437.2, unnumbered paragraph 1, Code 2015, 15 is amended to read as follows: 16 Every company owning or operating a transmission line or 17 lines for the conduct of electric energy and which line or 18 lines are located within the state, and which said line or 19 lines are also located wholly or partly outside cities, shall, 20 on or before the first day of May in each year, furnish to the 21 director department of revenue a verified statement as to its 22 entire line or lines within this state, when all of said line 23 or lines are located outside cities, and as to such portion 24 of its line or lines within this state as are located outside 25 cities, when such line or lines are located partly outside and 26 partly inside cities, showing: 27 Sec. 38. Section 437.4, Code 2015, is amended to read as 28 follows: 29 437.4 Additional statement. 30 Upon receipt of the statements from the companies, the 31 director department of revenue shall examine the statements, 32 and if the director department deems them insufficient, and 33 that further information is required, the director department 34 shall require the company making the statements to make 35 -18- LSB 1383HV (3) 86 mm/sc 18/ 40