House File 1050 - Introduced HOUSE FILE 1050 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 238) A BILL FOR An Act relating to the assessment of property containing 1 certain aboveground storage tanks and including effective 2 date and retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1702HV (2) 91 jm/md
H.F. 1050 Section 1. Section 427A.1, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6A. Notwithstanding the other provisions 3 of this section, aboveground storage tanks with a capacity 4 of ninety-one thousand gallons or less, no matter the use or 5 intended use in the subject property, shall not be assessed and 6 taxed as real property. 7 Sec. 2. IMPLEMENTATION. Section 25B.7 shall not apply to 8 this Act. 9 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 10 importance, takes effect upon enactment. 11 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 12 retroactively to assessment years beginning on or after January 13 1, 2025. 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 Code section 427A.1 specifies that for the purposes of 18 property taxation only, certain property shall be assessed 19 and taxed, unless otherwise qualified for exemption, as real 20 property, including buildings, structures, or improvements, any 21 of which are constructed on or in the land, attached to the 22 land, or placed upon a foundation whether or not attached to 23 the foundation. However, property is not “attached” if it is 24 a kind of property which would ordinarily be removed when the 25 owner of the property moves to another location. 26 This bill provides that aboveground storage tanks with 27 a capacity of 91,000 gallons or less, no matter the use or 28 intended use in the subject property, shall not be assessed and 29 taxed as real property. 30 The bill makes inapplicable Code section 25B.7. Code 31 section 25B.7 provides that for a property tax credit or 32 exemption enacted on or after January 1, 1997, if a state 33 appropriation made to fund the credit or exemption is not 34 sufficient to fully fund the credit or exemption, the political 35 -1- LSB 1702HV (2) 91 jm/md 1/ 2
H.F. 1050 subdivision shall be required to extend to the taxpayer only 1 that portion of the credit or exemption estimated by the 2 department of revenue to be funded by the state appropriation. 3 The bill takes effect upon enactment and applies 4 retroactively to assessment years beginning on or after January 5 1, 2025. 6 -2- LSB 1702HV (2) 91 jm/md 2/ 2