Bill Text: IA HF104 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the property tax exemption for the value added by certain geothermal heating or cooling systems and including applicability provisions. (See Cmte. Bill HF 627)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-06-02 - Withdrawn. H.J. 1115. [HF104 Detail]

Download: Iowa-2015-HF104-Introduced.html

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House File 104 - Introduced




                                 HOUSE FILE       
                                 BY  PETTENGILL

                                      A BILL FOR

  1 An Act relating to the property tax exemption for the value
  2    added by certain geothermal heating or cooling systems and
  3    including applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 427.1, subsection 38, paragraphs a and b,
  1  2 Code 2015, are amended to read as follows:
  1  3    a.  The value added by any new or refitted construction or
  1  4 installation of a geothermal heating or cooling system on or
  1  5 after July 1, 2012, on property classified as residential,
  1  6 or the value added by any new or refitted construction or
  1  7 installation of a geothermal heating or cooling system on or
  1  8 after July 1, 2015, on property classified as multiresidential,
  1  9 commercial, industrial, or agricultural. The exemption
  1 10 shall be allowed for ten consecutive years. The exemption
  1 11 shall apply to any value added by the addition of mechanical,
  1 12 electrical, plumbing, ductwork, or other equipment, labor,
  1 13 and expenses included in or required for the construction
  1 14 or installation of the geothermal system, as well as the
  1 15 proportionate value of any well field associated with the
  1 16 system and attributable to the owner.
  1 17    b.  A person claiming an exemption under this subsection
  1 18 shall obtain the appropriate forms from the assessor. The
  1 19 forms shall be prescribed by the director of revenue. The
  1 20 claim shall be filed no later than February 1 of the first
  1 21 assessment year the exemption is requested and shall contain
  1 22 information pertaining to all costs and other information
  1 23 associated with construction and installation of the system.
  1 24 Once the exemption is allowed, the exemption shall continue to
  1 25 be allowed for ten consecutive successive years without further
  1 26 filing as long as the property continues to be classified as
  1 27 residential, multiresidential, commercial, industrial, or
  1 28 agricultural property.
  1 29    Sec. 2.  IMPLEMENTATION.  Section 25B.7 does not apply to the
  1 30 property tax exemption enacted in this Act.
  1 31    Sec. 3.  APPLICABILITY.  This Act applies to assessment years
  1 32 beginning on or after January 1, 2016.
  1 33                           EXPLANATION
  1 34 The inclusion of this explanation does not constitute agreement with
  1 35 the explanation's substance by the members of the general assembly.
  2  1 Current Code section 427.1(38) provides a property
  2  2 tax exemption on the value added by any new or refitted
  2  3 construction or installation of a geothermal heating or cooling
  2  4 system on or after July 1, 2012, on property classified as
  2  5 residential. Under current law, that exemption is allowed for
  2  6 10 consecutive years.
  2  7    This bill authorizes the exemption for the refitted
  2  8 construction or installation of a geothermal heating or cooling
  2  9 system on property classified as multiresidential, commercial,
  2 10 industrial, or agricultural property.
  2 11    The bill also removes the 10=year limitation on the duration
  2 12 of the exemption.
  2 13    The bill makes inapplicable Code section 25B.7. Code
  2 14 section 25B.7 provides that for a property tax credit or
  2 15 exemption enacted on or after January 1, 1997, if a state
  2 16 appropriation made to fund the credit or exemption is not
  2 17 sufficient to fully fund the credit or exemption, the political
  2 18 subdivision shall be required to extend to the taxpayer only
  2 19 that portion of the credit or exemption estimated by the
  2 20 department of revenue to be funded by the state appropriation.
  2 21    The bill applies to assessment years beginning on or after
  2 22 January 1, 2016.
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