H.F. _____ Section 1. Section 29C.24, subsection 3, paragraph a, 1 subparagraph (6), Code 2018, is amended to read as follows: 2 (6) The assessment of property taxes by the department 3 of revenue under sections 428.24 through 428.26 , 428.28 , and 4 428.29 , or chapters 433 , 434 , 435 , and 437 through 438 , or by 5 a local assessor under another provision of law, on property 6 brought into the state to aid in the performance of disaster 7 or emergency-related work during a disaster response period if 8 such property does not remain in the state after the conclusion 9 of the disaster response period. 10 Sec. 2. Section 331.401, subsection 1, paragraph k, Code 11 2018, is amended to read as follows: 12 k. Levy taxes as certified to it by tax-certifying bodies 13 in the county, in accordance with the statutes authorizing the 14 levies and in accordance with chapter 24 and sections 444.1 to 15 444.8 , and levy taxes as required in chapters 433 , 434 , 437 , 16 and 438 . 17 Sec. 3. Section 331.427, subsection 1, unnumbered paragraph 18 1, Code 2018, is amended to read as follows: 19 Except as otherwise provided by state law, county revenues 20 from taxes and other sources for general county services shall 21 be credited to the general fund of the county, including 22 revenues received under sections 9I.11 , 101A.3 , 101A.7 , 123.36 , 23 123.143 , 142D.9 , 176A.8 , 321.105 , 321.152 , 321G.7 , 321I.8 , 24 section 331.554, subsection 6 , sections 341A.20 , 364.3 , 368.21 , 25 423A.7 , 428A.8 , 433.15 , 434.19 , 445.57 , 453A.35 , 458A.21 , 26 483A.12 , 533.329 , 556B.1 , 583.6 , 602.8108 , 904.908 , and 906.17 , 27 and the following: 28 Sec. 4. Section 331.512, subsection 7, Code 2018, is amended 29 by striking the subsection. 30 Sec. 5. Section 331.559, subsection 17, Code 2018, is 31 amended by striking the subsection. 32 Sec. 6. Section 427.1, subsection 2, Code 2018, is amended 33 to read as follows: 34 2. Municipal and military property. The property of a 35 -1- LSB 5429YC (6) 87 md/rn 1/ 13

H.F. _____ county, township, city, school corporation, levee district, 1 drainage district, district organized under chapter 357E , or 2 the Iowa national guard, when devoted to public use and not 3 held for pecuniary profit, except property of a municipally 4 owned electric utility held under joint ownership and property 5 of an electric power facility financed under chapter 28F or 6 476A that shall be subject to taxation under chapter 437A 7 and facilities of a municipal utility that are used for the 8 provision of local exchange services pursuant to chapter 476 , 9 but only to the extent such facilities are used to provide such 10 services , which shall be subject to taxation under chapter 433 , 11 except that section 433.11 shall not apply . The exemption for 12 property owned by a city or county also applies to property 13 which is operated by a city or county as a library, art 14 gallery or museum, conservatory, botanical garden or display, 15 observatory or science museum, or as a location for holding 16 athletic contests, sports or entertainment events, expositions, 17 meetings or conventions, or leased from the city or county for 18 any such purposes, or leased from the city or county by the 19 Iowa national guard or by a federal agency for the benefit of 20 the Iowa national guard when devoted for public use and not 21 for pecuniary profit. Food and beverages may be served at the 22 events or locations without affecting the exemptions, provided 23 the city has approved the serving of food and beverages on the 24 property if the property is owned by the city or the county 25 has approved the serving of food and beverages on the property 26 if the property is owned by the county. The exemption for 27 property owned by a city or county also applies to property 28 which is located at an airport and leased to a fixed base 29 operator providing aeronautical services to the public. 30 Sec. 7. Section 427.1, subsection 40, paragraph a, Code 31 2018, is amended to read as follows: 32 a. The owner of broadband infrastructure shall be entitled 33 to an exemption from taxation to the extent provided in this 34 subsection for assessment years beginning before January 35 -2- LSB 5429YC (6) 87 md/rn 2/ 13

H.F. _____ 1, 2019 . For the purposes of this subsection , “broadband 1 infrastructure” and “targeted service area” mean the same as 2 defined in section 8B.1 . 3 Sec. 8. Section 427.1, subsection 40, Code 2018, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH . i. This subsection is repealed July 1, 2021. 6 Sec. 9. Section 427A.1, subsection 1, paragraphs c and d, 7 Code 2018, are amended to read as follows: 8 c. Buildings, structures or improvements, any of which are 9 constructed on or in the land, attached to the land, or placed 10 upon a foundation whether or not attached to the foundation. 11 However, property taxed under chapter 435 , and property that is 12 a concrete batch plant as that term is defined in subsection 13 4 , and property that is transmission property as defined in 14 subsection 6A shall not be assessed and taxed as real property. 15 d. Buildings, structures, equipment, machinery or 16 improvements, any of which are attached to the buildings, 17 structures, or improvements defined in paragraph “c” of this 18 subsection . However, property that is transmission property 19 as defined in subsection 6A shall not be assessed and taxed as 20 real property. 21 Sec. 10. Section 427A.1, subsection 1, paragraph h, Code 22 2018, is amended to read as follows: 23 h. Property assessed by the department of revenue pursuant 24 to sections 428.24 to 428.29 , or chapters 433 , 434 , 437 , 437A , 25 437B , and 438 . 26 Sec. 11. Section 427A.1, Code 2018, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 6A. For purposes of this section, 29 “transmission property” means cable and wire facilities, 30 poles, aerial cable, underground cable, buried cable, 31 intrabuilding network cable, or aerial wire within the meaning 32 of and for purposes of the uniform system of accounts for 33 telecommunication companies in 47 C.F.R. pt. 32, in effect on 34 the effective date of this Act. 35 -3- LSB 5429YC (6) 87 md/rn 3/ 13

H.F. _____ Sec. 12. Section 427B.17, subsection 8, paragraph a, Code 1 2018, is amended to read as follows: 2 a. This section shall not apply to property assessed by the 3 department of revenue pursuant to sections 428.24 to 428.29 , or 4 chapters 433 , 434 , 437 , 437A , 437B , and 438 , and such property 5 shall not receive the benefits of this section . 6 Sec. 13. Section 429.1, Code 2018, is amended to read as 7 follows: 8 429.1 Notice of assessment. 9 The department of revenue shall, at the time of making 10 the assessment of property as provided in chapters 428 , 433 , 11 434 , 437 , and 438 , inform the person assessed, by mail, of 12 the valuation put upon the taxpayer’s property. The notice 13 shall contain a notice of the taxpayer’s right of appeal to the 14 director of revenue as provided in section 429.2 . 15 Sec. 14. NEW SECTION . 433.16 Applicability —— future 16 repeal. 17 1. This chapter applies to the assessment and taxation of 18 telephone and telegraph company property for assessment years 19 beginning before January 1, 2019. 20 2. This chapter is repealed on July 1, 2021. 21 Sec. 15. Section 437.15, Code 2018, is amended to read as 22 follows: 23 437.15 Reassessment —— procedure and requirements. 24 Sections 433.14 , and 433.15 , Code 2018, and sections 439.1 , 25 and 439.2 shall apply to the property of transmission lines 26 which are referred to in section 437.2 . 27 Sec. 16. Section 441.19, subsection 1, paragraph a, Code 28 2018, is amended to read as follows: 29 a. Supplemental and optional to the procedure for the 30 assessment of property by the assessor as provided in this 31 chapter , the assessor may require from all persons required 32 to list their property for taxation as provided by sections 33 428.1 and 428.2 , a supplemental return to be prescribed by 34 the director of revenue upon which the person shall list 35 -4- LSB 5429YC (6) 87 md/rn 4/ 13

H.F. _____ the person’s property. The supplemental return shall be in 1 substantially the same form as now prescribed by law for 2 the assessment rolls used in the listing of property by the 3 assessors. However, for assessment years beginning on or after 4 January 1, 2018, and unless otherwise required for property 5 valued by the department of revenue pursuant to chapters 428 , 6 433 , 437 , and 438 , a supplemental return shall not request, 7 and a person shall not be otherwise required to provide to the 8 assessor for property assessment purposes, sales or receipts 9 data, expense data, balance sheets, bank account information, 10 or other data related to the financial condition of a business 11 operating in whole or in part on the property if the property 12 is both classified as commercial or industrial property and 13 owned and used by the owner of the business. Every person 14 required to list property for taxation shall make a complete 15 listing of the property upon supplemental forms and return the 16 listing to the assessor as promptly as possible. The return 17 shall be verified over the signature of the person making the 18 return and section 441.25 applies to any person making such 19 a return. The assessor shall make supplemental return forms 20 available as soon as practicable after the first day of January 21 of each year. The assessor shall make supplemental return 22 forms available to the taxpayer by mail, or at a designated 23 place within the taxing district. 24 Sec. 17. Section 441.21, subsection 2, Code 2018, is amended 25 to read as follows: 26 2. In the event market value of the property being assessed 27 cannot be readily established in the foregoing manner, then 28 the assessor may determine the value of the property using the 29 other uniform and recognized appraisal methods including its 30 productive and earning capacity, if any, industrial conditions, 31 its cost, physical and functional depreciation and obsolescence 32 and replacement cost, and all other factors which would assist 33 in determining the fair and reasonable market value of the 34 property but the actual value shall not be determined by use 35 -5- LSB 5429YC (6) 87 md/rn 5/ 13

H.F. _____ of only one such factor. The following shall not be taken into 1 consideration: Special value or use value of the property to 2 its present owner, and the goodwill or value of a business 3 which uses the property as distinguished from the value of 4 the property as property. In addition, for assessment years 5 beginning on or after January 1, 2018, and unless otherwise 6 required for property valued by the department of revenue 7 pursuant to chapters 428 , 433 , 437 , and 438 , the assessor 8 shall not take into consideration and shall not request from 9 any person sales or receipts data, expense data, balance 10 sheets, bank account information, or other data related to 11 the financial condition of a business operating in whole or 12 in part on the property if the property is both classified as 13 commercial or industrial property and owned and used by the 14 owner of the business. However, in assessing property that 15 is rented or leased to low-income individuals and families 16 as authorized by section 42 of the Internal Revenue Code, 17 as amended, and which section limits the amount that the 18 individual or family pays for the rental or lease of units 19 in the property, the assessor shall, unless the owner elects 20 to withdraw the property from the assessment procedures for 21 section 42 property, use the productive and earning capacity 22 from the actual rents received as a method of appraisal and 23 shall take into account the extent to which that use and 24 limitation reduces the market value of the property. The 25 assessor shall not consider any tax credit equity or other 26 subsidized financing as income provided to the property in 27 determining the assessed value. The property owner shall 28 notify the assessor when property is withdrawn from section 42 29 eligibility under the Internal Revenue Code or if the owner 30 elects to withdraw the property from the assessment procedures 31 for section 42 property under this subsection . The property 32 shall not be subject to section 42 assessment procedures 33 for the assessment year for which section 42 eligibility is 34 withdrawn or an election is made. This notification must 35 -6- LSB 5429YC (6) 87 md/rn 6/ 13

H.F. _____ be provided to the assessor no later than March 1 of the 1 assessment year or the owner will be subject to a penalty of 2 five hundred dollars for that assessment year. The penalty 3 shall be collected at the same time and in the same manner 4 as regular property taxes. An election to withdraw from the 5 assessment procedures for section 42 property is irrevocable. 6 Property that is withdrawn from the assessment procedures 7 for section 42 property shall be classified and assessed as 8 multiresidential property unless the property otherwise fails 9 to meet the requirements of section 441.21, subsection 13 . 10 Upon adoption of uniform rules by the department of revenue 11 or succeeding authority covering assessments and valuations 12 of such properties, the valuation on such properties shall be 13 determined in accordance with such rules and in accordance with 14 forms and guidelines contained in the real property appraisal 15 manual prepared by the department as updated from time to time 16 for assessment purposes to assure uniformity, but such rules, 17 forms, and guidelines shall not be inconsistent with or change 18 the foregoing means of determining the actual, market, taxable , 19 and assessed values. 20 Sec. 18. Section 441.21, subsection 5, paragraph a, Code 21 2018, is amended to read as follows: 22 a. For valuations established as of January 1, 1979, 23 property valued by the department of revenue pursuant to 24 chapters 428 , 433 , 437 , and 438 shall be considered as one 25 class of property and shall be assessed as a percentage of 26 its actual value. The percentage shall be determined by the 27 director of revenue in accordance with the provisions of this 28 section . For valuations established as of January 1, 1979, the 29 percentage shall be the quotient of the dividend and divisor 30 as defined in this section . The dividend shall be the total 31 actual valuation established for 1978 by the department of 32 revenue, plus ten percent of the amount so determined. The 33 divisor for property valued by the department of revenue 34 pursuant to chapters 428 , 433 , 437 , and 438 shall be the 35 -7- LSB 5429YC (6) 87 md/rn 7/ 13

H.F. _____ valuation established for 1978, plus the amount of value added 1 to the total actual value by the revaluation of the property 2 by the department of revenue as of January 1, 1979. For 3 valuations established as of January 1, 1980, property valued 4 by the department of revenue pursuant to chapters 428 , 433 , 5 437 , and 438 shall be assessed at a percentage of its actual 6 value. The percentage shall be determined by the director of 7 revenue in accordance with the provisions of this section . For 8 valuations established as of January 1, 1980, the percentage 9 shall be the quotient of the dividend and divisor as defined in 10 this section . The dividend shall be the total actual valuation 11 established for 1979 by the department of revenue, plus eight 12 percent of the amount so determined. The divisor for property 13 valued by the department of revenue pursuant to chapters 428 , 14 433 , 437 , and 438 shall be the valuation established for 1979, 15 plus the amount of value added to the total actual value by the 16 revaluation of the property by the department of revenue as of 17 January 1, 1980. For valuations established as of January 1, 18 1981, and each year thereafter, the percentage of actual value 19 at which property valued by the department of revenue pursuant 20 to chapters 428 , 433 , 437 , and 438 shall be assessed shall be 21 calculated in accordance with the methods provided herein, 22 except that any references to ten percent in this subsection 23 shall be eight percent. For valuations established on or after 24 January 1, 2013, property valued by the department of revenue 25 pursuant to chapter 434 shall be assessed at a percentage of 26 its actual value equal to the percentage of actual value at 27 which property assessed as commercial property is assessed 28 under paragraph “b” for the same assessment year. 29 Sec. 19. Section 441.21, subsections 9 and 10, Code 2018, 30 are amended to read as follows: 31 9. Not later than November 1, 1979, and November 1 of each 32 subsequent year, the director shall certify to the county 33 auditor of each county the percentages of actual value at 34 which residential property, agricultural property, commercial 35 -8- LSB 5429YC (6) 87 md/rn 8/ 13

H.F. _____ property, industrial property, multiresidential property, 1 property valued by the department of revenue pursuant to 2 chapter 434 , and property valued by the department of revenue 3 pursuant to chapters 428 , 433 , 437 , and 438 in each assessing 4 jurisdiction in the county shall be assessed for taxation. The 5 county auditor shall proceed to determine the assessed values 6 of agricultural property, residential property, commercial 7 property, industrial property, multiresidential property, 8 property valued by the department of revenue pursuant to 9 chapter 434 , and property valued by the department of revenue 10 pursuant to chapters 428 , 433 , 437 , and 438 by applying such 11 percentages to the current actual value of such property, 12 as reported to the county auditor by the assessor, and the 13 assessed values so determined shall be the taxable values of 14 such properties upon which the levy shall be made. 15 10. The percentage of actual value computed by the 16 department of revenue for agricultural property, residential 17 property, commercial property, industrial property, 18 multiresidential property, property valued by the department 19 of revenue pursuant to chapter 434 , and property valued by the 20 department of revenue pursuant to chapters 428 , 433 , 437 , and 21 438 and used to determine assessed values of those classes 22 of property does not constitute a rule as defined in section 23 17A.2, subsection 11 . 24 Sec. 20. Section 441.73, subsection 1, Code 2018, is amended 25 to read as follows: 26 1. A litigation expense fund is created in the state 27 treasury. The litigation expense fund shall be used for the 28 payment of litigation expenses incurred by the state to defend 29 property valuations established by the director of revenue 30 pursuant to section 428.24 and chapters 433 , 434 , 437 , 437A , 31 437B , and 438 , and for the payment of litigation expenses 32 incurred by the state to defend the imposition of replacement 33 taxes and statewide property taxes under chapters 437A and 34 437B . 35 -9- LSB 5429YC (6) 87 md/rn 9/ 13

H.F. _____ Sec. 21. Section 476.1D, subsection 10, Code 2018, is 1 amended by striking the subsection. 2 Sec. 22. FUTURE ASSESSMENT YEARS. Telephone and telegraph 3 company property subject to assessment under chapter 433 for 4 assessment years beginning before January 1, 2019, shall be, 5 for assessment years beginning on or after January 1, 2019, 6 assessed by local assessors under chapters 427, 427A, 427B, 7 428, and 441, and any other applicable provision of law in the 8 same manner and on the same basis as other commercial property 9 located in the assessing jurisdiction where situated. 10 Sec. 23. SAVINGS PROVISION. This Act, pursuant to section 11 4.13, does not affect the operation of, or prohibit the 12 application of, prior provisions of chapter 433, or rules 13 adopted under chapter 17A to administer prior provisions of 14 chapter 433, for assessment years beginning before January 1, 15 2019, and for duties, powers, protests, appeals, proceedings, 16 actions, or remedies attributable to an assessment year 17 beginning before January 1, 2019. 18 Sec. 24. IMPLEMENTATION. Section 25B.7 shall not apply to 19 this Act. 20 Sec. 25. EFFECTIVE DATE. The following take effect July 1, 21 2021: 22 1. The section of this Act amending section 29C.24. 23 2. The section of this Act amending section 331.401. 24 3. The section of this Act amending section 331.427. 25 4. The section of this Act amending section 331.512. 26 5. The section of this Act amending section 331.559. 27 6. The section of this Act amending section 427.1, 28 subsection 2. 29 7. The section of this Act amending section 427A.1, 30 subsection 1, paragraph “h”. 31 8. The section of this Act amending section 427B.17. 32 9. The section of this Act amending section 429.1. 33 10. The section of this Act amending section 437.15. 34 11. The section of this Act amending section 441.19. 35 -10- LSB 5429YC (6) 87 md/rn 10/ 13

H.F. _____ 12. The section of this Act amending section 441.21, 1 subsection 2. 2 13. The section of this Act amending section 441.21, 3 subsection 5. 4 14. The section of this Act amending section 441.21, 5 subsections 9 and 10. 6 15. The section of this Act amending section 441.73. 7 Sec. 26. APPLICABILITY. The following apply to assessment 8 years beginning on or after January 1, 2019: 9 1. The section of this Act amending section 427A.1, 10 subsection 1, paragraphs “c” and “d”. 11 2. The section of this Act enacting section 427A.1, 12 subsection 6A. 13 3. The section of this Act amending section 476.1D. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Current Code chapter 433 requires the department of revenue 18 to centrally assess the property of telegraph and telephone 19 companies that is used by the companies in the transaction of 20 telegraph and telephone business. The assessment conducted by 21 the department of revenue using information provided by the 22 companies is required to include all property of every kind 23 and character whatsoever, real, personal, or mixed, used by 24 the companies in the transaction of telegraph and telephone 25 business. In valuing such property, the department of revenue 26 is required to take into consideration the valuation of all 27 property of the companies, including franchises and the use of 28 the property in connection with lines outside the state, and 29 making these deductions as may be necessary on account of extra 30 value of property outside the state as compared with the value 31 of property in the state, in order that the actual value of the 32 property of the company within this state may be ascertained. 33 Code chapter 433 also provides for certain amounts of 34 property value to be exempt from taxation and establishes a 35 -11- LSB 5429YC (6) 87 md/rn 11/ 13

H.F. _____ process by which the valuation of the company is allocated to 1 each county of the state into which the line of the company 2 extends. 3 This bill makes the current central assessment process under 4 Code chapter 433 applicable to property tax assessment years 5 beginning before January 1, 2019, and provides that telephone 6 and telegraph company property subject to assessment under Code 7 chapter 433 for assessment years beginning before January 1, 8 2019, shall be, for assessment years beginning on or after 9 January 1, 2019, assessed by local assessors in the same manner 10 and on the same basis as other commercial property located in 11 the assessing jurisdiction. 12 Code section 427A.1 requires certain property to be assessed 13 and taxed as real property, including the following: (1) 14 buildings, structures or improvements, any of which are 15 constructed on or in the land, attached to the land, or placed 16 upon a foundation whether or not attached to the foundation, 17 and (2) buildings, structures, equipment, machinery or 18 improvements, any of which are attached to the buildings, 19 structures, or improvements. The bill excludes transmission 20 property from being assessed and taxed as real property. 21 The bill defines “transmission property” as cable and wire 22 facilities, poles, aerial cable, underground cable, buried 23 cable, intrabuilding network cable, or aerial wire within the 24 meaning of and for purposes of the uniform system of accounts 25 for telecommunications companies in 47 C.F.R. pt. 32, in effect 26 on the effective date of the bill. 27 By operation of law, the removal of telecommunications 28 company property from assessment by the department of 29 revenue under Code chapter 433 and subsequent repeal of Code 30 chapter 433 removes the sale price from the sale of certain 31 telecommunications company machinery, equipment, and computers 32 from the provision of Code section 423.3, subsection 47, 33 paragraph “c”, subparagraph (3), that subjects such sales to 34 the state sales and use tax. 35 -12- LSB 5429YC (6) 87 md/rn 12/ 13

H.F. _____ The bill makes corresponding changes to various provisions 1 of the Code relating to the central assessment of property 2 under Code chapter 433, sunsets a property tax exemption for 3 certain broadband infrastructure under Code section 427.1(40), 4 and strikes a provision in Code section 476.1D that allows 5 certain specified long-distance telephone company property to 6 be assessed for taxation as commercial property by the local 7 assessor. 8 The bill, pursuant to Code section 4.13, does not affect the 9 operation of, or prohibit the application of, prior provisions 10 of Code chapter 433, or rules adopted under Code chapter 17A to 11 administer prior provisions of Code chapter 433, for assessment 12 years beginning before January 1, 2019, and for duties, 13 powers, protests, appeals, proceedings, actions, or remedies 14 attributable to an assessment year beginning before January 1, 15 2019. 16 The bill provides that the provisions in Code section 25B.7, 17 relating to the obligation of the state to reimburse local 18 jurisdictions for property tax credits and exemptions, do not 19 apply to the bill. 20 The bill repeals Code chapter 433 on July 1, 2021, and makes 21 several corresponding amendment changes effective on July 1, 22 2021. 23 The sections of the bill amending Code section 427A.1, 24 subsection 1, paragraphs “c” and “d”, enacting Code section 25 427A.1, subsection 6A, and amending Code section 476.1D apply 26 to assessment years beginning on or after January 1, 2019. 27 -13- LSB 5429YC (6) 87 md/rn 13/ 13