House Study Bill 64 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to the assessment and taxation of certain 1 sanitary sewage and storm water drainage property and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1203YC (3) 90 md/jh

H.F. _____ Section 1. Section 427.1, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 42. Sanitary sewage or storm water drainage 3 property. Property owned or operated by a public utility, as 4 defined in section 476.1, subsection 3, that is directly and 5 primarily used for the purposes specified under section 476.1, 6 subsection 3, paragraph “d” . 7 Sec. 2. APPLICABILITY. This Act applies to assessment years 8 beginning on or after January 1, 2024. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill amends Code section 427.1 to establish a property 13 tax exemption for property owned or operated by a public 14 utility that is directly and primarily used for furnishing 15 sanitary sewage or storm water drainage disposal by piped 16 collection system to the public for compensation. Under the 17 bill, “public utility” means the same as defined in Code 18 section 476.1. Under Code section 421.17, the director of 19 revenue has the authority to issue rules as are necessary to 20 provide for the uniform application of the exemptions provided 21 in Code section 427.1 in all assessor jurisdictions in the 22 state. 23 The bill applies to assessment years beginning on or after 24 January 1, 2024. 25 -1- LSB 1203YC (3) 90 md/jh 1/ 1