HSB 667 (LSB 6176YC (2) 89)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON HEIN)

A BILL FOR

An Act relating to the assessment and taxation of wind energy conversion property and including effective date and retroactive applicability provisions. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427B.26, subsection 3, Code 2022, is amended to read as follows:
   3.  a.  The taxpayer shall file with the local assessor by February 1 of the assessment year in which the wind energy conversion property is first assessed for property tax purposes, a declaration of intent to have the property assessed at the value determined under this section in lieu of the valuation and assessment provisions in section 441.21, subsection 8, paragraphs “b”, “c”, and “d”, and sections 428.24 through 428.26, 428.28, and 428.29.
   b.  Maintaining, refurbishing, or repowering wind energy conversion property shall not cause the wind energy conversion property to receive a new assessment schedule under subsection 2.
    Sec. 2.  Section 427B.26, subsection 4, Code 2022, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  “Repowering” means the removal and replacement of components of wind energy conversion property.
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to assessment years beginning on or after January 1, 2022.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 427B.26 governs the special valuation of wind energy conversion property for such property covered by an ordinance adopted by a city council or county board of supervisors. The valuation of such property increases over a period of years until, for the seventh and succeeding assessment years, the property is assessed at 30 percent of the net acquisition cost.
   This bill provides that maintaining, refurbishing, or repowering wind energy conversion property shall not cause the wind energy conversion property to receive a new special valuation schedule under Code section 427B.26. The bill defines “repowering” as the removal and replacement of components of wind energy conversion property.
   The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2022.