House
File
614
-
Introduced
HOUSE
FILE
614
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
42)
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
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614
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
shall
9
be
allowed
for
ten
consecutive
years
beginning
not
earlier
10
than
the
assessment
year
following
the
year
that
the
system
11
was
placed
in
service
.
The
exemption
shall
apply
to
any
value
12
added
by
the
addition
of
mechanical,
electrical,
plumbing,
13
ductwork,
or
other
equipment,
labor,
and
expenses
included
14
in
or
required
for
the
construction
or
installation
of
the
15
geothermal
system,
as
well
as
the
proportionate
value
of
any
16
well
field
associated
with
the
system
and
attributable
to
the
17
owner.
18
b.
A
person
claiming
an
exemption
under
this
subsection
19
shall
obtain
the
appropriate
forms
from
the
assessor.
The
20
forms
shall
be
prescribed
by
the
director
of
revenue.
The
21
claim
shall
be
filed
no
later
than
February
1
of
the
first
22
assessment
year
the
exemption
is
requested
and
shall
contain
23
information
pertaining
to
all
costs
and
other
information
24
associated
with
construction
and
installation
of
the
system.
25
Once
the
exemption
is
allowed,
the
exemption
shall
continue
to
26
be
allowed
for
ten
consecutive
years
without
further
filing
as
27
long
as
the
property
continues
to
be
classified
as
residential
,
28
multiresidential,
commercial,
industrial,
or
agricultural
29
property.
30
Sec.
2.
IMPLEMENTATION.
Section
25B.7
does
not
apply
to
the
31
property
tax
exemption
enacted
in
this
Act.
32
Sec.
3.
APPLICABILITY.
This
Act
applies
to
assessment
years
33
beginning
on
or
after
January
1,
2018.
34
EXPLANATION
35
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
Current
Code
section
427.1(38)
provides
a
property
3
tax
exemption
on
the
value
added
by
any
new
or
refitted
4
construction
or
installation
of
a
geothermal
heating
or
cooling
5
system
on
or
after
July
1,
2012,
on
property
classified
as
6
residential.
Under
current
law,
that
exemption
is
allowed
for
7
10
consecutive
years.
8
This
bill
authorizes
the
exemption
for
the
valve
added
by
any
9
new
or
refitted
construction
or
installation
of
a
geothermal
10
heating
or
cooling
system
on
or
after
July
1,
2017,
on
property
11
classified
as
multiresidential,
commercial,
industrial,
or
12
agricultural
property.
13
The
bill
provides
that
the
10-year
exemption
period
begins
14
not
earlier
than
the
assessment
year
following
the
year
that
15
the
system
was
placed
in
service.
16
The
bill
makes
inapplicable
Code
section
25B.7.
Code
17
section
25B.7
provides
that
for
a
property
tax
credit
or
18
exemption
enacted
on
or
after
January
1,
1997,
if
a
state
19
appropriation
made
to
fund
the
credit
or
exemption
is
not
20
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
21
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
22
that
portion
of
the
credit
or
exemption
estimated
by
the
23
department
of
revenue
to
be
funded
by
the
state
appropriation.
24
The
bill
applies
to
assessment
years
beginning
on
or
after
25
January
1,
2018.
26
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