Senate File 2007 - Introduced SENATE FILE 2007 BY D. JOHNSON A BILL FOR An Act relating to a tax credit for pollution-control and 1 recycling property connected to property used for the care 2 and feeding of livestock, and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5220XS (4) 87 da/rn
S.F. 2007 Section 1. Section 427.1, subsection 19, paragraph e, 1 subparagraph (1), Code 2018, is amended to read as follows: 2 (1) For the purposes of this subsection , “pollution-control 3 property” subsection: 4 (a) “Pollution-control property” means personal property or 5 improvements to real property, or any portion thereof, used 6 primarily to control or abate pollution of any air or water of 7 this state or used primarily to enhance the quality of any air 8 or water of this state and “recycling property” means personal 9 property or improvements to real property or any portion of 10 the property, used primarily in the manufacturing process and 11 resulting directly in the conversion of waste glass, waste 12 plastic, wastepaper products, waste paperboard, or waste wood 13 products into new raw materials or products composed primarily 14 of recycled material. In the event such property shall also 15 serve other purposes or uses of productive benefit to the owner 16 of the property, only such portion of the assessed valuation 17 thereof as may reasonably be calculated to be necessary for 18 and devoted to the control or abatement of pollution, to the 19 enhancement of the quality of the air or water of this state, 20 or for recycling shall be exempt from taxation under this 21 subsection . 22 (b) “Pollution-control property” or “recycling property” 23 does not include property used for purposes related to the 24 care and feeding of livestock as defined in section 169C.1, 25 except for property which is eligible for a family farm tax 26 credit as provided in chapter 425A. The exemption calculated 27 for pollution-control property or recycling property used for 28 the purpose of care and feeding of livestock and which is 29 eligible for a family farm tax credit is limited to the first 30 one hundred thousand dollars of the property’s assessed value. 31 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 32 2019. 33 Sec. 3. APPLICABILITY. This Act applies to tax years 34 beginning on or after January 1, 2019. 35 -1- LSB 5220XS (4) 87 da/rn 1/ 2
S.F. 2007 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill amends Code section 427.1, which provides a 4 number of exemptions from property taxation. The Code section 5 includes an exemption for certain types of pollution-control 6 and recycling property as certified by the department of 7 natural resources. The bill limits this tax exemption for such 8 property that is related to the care and feeding of livestock 9 by requiring that the property used for the care and feeding 10 of livestock must be eligible for a family farm tax credit 11 under Code chapter 425A. The bill also provides that the tax 12 credit still available is limited to the first $100,000 of the 13 property’s assessed value. The bill takes effect January 1, 14 2019, and is applicable for tax years beginning on and after 15 that date. 16 -2- LSB 5220XS (4) 87 da/rn 2/ 2