Bill Text: IA HF42 | 2017-2018 | 87th 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 HF 614.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-02-28 - Committee report, recommending amendment and passage. H.J. 710. [HF42 Detail]

Download: Iowa-2017-HF42-Introduced.html

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House File 42 - 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:
    TLSB 1798HH (2) 87
    md/sc

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 38, paragraphs a and b,
  1  2 Code 2017, 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, 2017, 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, 2018.
  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 or after July 1, 2017, on property classified as
  2 10 multiresidential, commercial, industrial, or agricultural
  2 11 property.
  2 12    The bill also removes the 10=year limitation on the duration
  2 13 of the exemption.
  2 14    The bill makes inapplicable Code section 25B.7. Code
  2 15 section 25B.7 provides that for a property tax credit or
  2 16 exemption enacted on or after January 1, 1997, if a state
  2 17 appropriation made to fund the credit or exemption is not
  2 18 sufficient to fully fund the credit or exemption, the political
  2 19 subdivision shall be required to extend to the taxpayer only
  2 20 that portion of the credit or exemption estimated by the
  2 21 department of revenue to be funded by the state appropriation.
  2 22    The bill applies to assessment years beginning on or after
  2 23 January 1, 2018.
       LSB 1798HH (2) 87
       md/sc