HSB 238 (LSB 1702YC (1) 91)

HOUSE FILE _____ 

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

A BILL FOR

An Act relating to the assessment of property containing certain aboveground storage tanks and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427A.1, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  Notwithstanding the other provisions of this section, aboveground storage tanks of any size that are not attached within the meaning of subsection 3 shall not be assessed and taxed as real property.
    Sec. 2.  IMPLEMENTATION.  Section 25B.7 shall not apply to this Act.
    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, 2025.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 427A.1 specifies that for the purposes of property taxation only, certain property shall be assessed and taxed, unless otherwise qualified for exemption, as real property, including buildings, structures, or improvements, any of which are constructed on or in the land, attached to the land, or placed upon a foundation whether or not attached to the foundation. However, property is not “attached” if it is a kind of property which would ordinarily be removed when the owner of the property moves to another location. 
   This bill provides that aboveground storage tanks of any size that would ordinarily be removed when the owner of the property moves to another location shall not be assessed and taxed as real property.
   The bill makes inapplicable Code section 25B.7. Code section 25B.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.
   The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2025.