House
File
42
-
Introduced
HOUSE
FILE
42
BY
PETTENGILL
A
BILL
FOR
An
Act
relating
to
the
property
tax
exemption
for
the
value
1
added
by
certain
geothermal
heating
or
cooling
systems
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1798HH
(2)
87
md/sc
H.F.
42
Section
1.
Section
427.1,
subsection
38,
paragraphs
a
and
b,
1
Code
2017,
are
amended
to
read
as
follows:
2
a.
The
value
added
by
any
new
or
refitted
construction
or
3
installation
of
a
geothermal
heating
or
cooling
system
on
or
4
after
July
1,
2012,
on
property
classified
as
residential
,
5
or
the
value
added
by
any
new
or
refitted
construction
or
6
installation
of
a
geothermal
heating
or
cooling
system
on
or
7
after
July
1,
2017,
on
property
classified
as
multiresidential,
8
commercial,
industrial,
or
agricultural
.
The
exemption
9
shall
be
allowed
for
ten
consecutive
years.
The
exemption
10
shall
apply
to
any
value
added
by
the
addition
of
mechanical,
11
electrical,
plumbing,
ductwork,
or
other
equipment,
labor,
12
and
expenses
included
in
or
required
for
the
construction
13
or
installation
of
the
geothermal
system,
as
well
as
the
14
proportionate
value
of
any
well
field
associated
with
the
15
system
and
attributable
to
the
owner.
16
b.
A
person
claiming
an
exemption
under
this
subsection
17
shall
obtain
the
appropriate
forms
from
the
assessor.
The
18
forms
shall
be
prescribed
by
the
director
of
revenue.
The
19
claim
shall
be
filed
no
later
than
February
1
of
the
first
20
assessment
year
the
exemption
is
requested
and
shall
contain
21
information
pertaining
to
all
costs
and
other
information
22
associated
with
construction
and
installation
of
the
system.
23
Once
the
exemption
is
allowed,
the
exemption
shall
continue
to
24
be
allowed
for
ten
consecutive
successive
years
without
further
25
filing
as
long
as
the
property
continues
to
be
classified
as
26
residential
,
multiresidential,
commercial,
industrial,
or
27
agricultural
property.
28
Sec.
2.
IMPLEMENTATION.
Section
25B.7
does
not
apply
to
the
29
property
tax
exemption
enacted
in
this
Act.
30
Sec.
3.
APPLICABILITY.
This
Act
applies
to
assessment
years
31
beginning
on
or
after
January
1,
2018.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
35
-1-
LSB
1798HH
(2)
87
md/sc
1/
2
H.F.
42
Current
Code
section
427.1(38)
provides
a
property
1
tax
exemption
on
the
value
added
by
any
new
or
refitted
2
construction
or
installation
of
a
geothermal
heating
or
cooling
3
system
on
or
after
July
1,
2012,
on
property
classified
as
4
residential.
Under
current
law,
that
exemption
is
allowed
for
5
10
consecutive
years.
6
This
bill
authorizes
the
exemption
for
the
refitted
7
construction
or
installation
of
a
geothermal
heating
or
cooling
8
system
on
or
after
July
1,
2017,
on
property
classified
as
9
multiresidential,
commercial,
industrial,
or
agricultural
10
property.
11
The
bill
also
removes
the
10-year
limitation
on
the
duration
12
of
the
exemption.
13
The
bill
makes
inapplicable
Code
section
25B.7.
Code
14
section
25B.7
provides
that
for
a
property
tax
credit
or
15
exemption
enacted
on
or
after
January
1,
1997,
if
a
state
16
appropriation
made
to
fund
the
credit
or
exemption
is
not
17
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
18
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
19
that
portion
of
the
credit
or
exemption
estimated
by
the
20
department
of
revenue
to
be
funded
by
the
state
appropriation.
21
The
bill
applies
to
assessment
years
beginning
on
or
after
22
January
1,
2018.
23
-2-
LSB
1798HH
(2)
87
md/sc
2/
2