Bill Text: IA HF614 | 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. (Formerly HF 42.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-01-08 - Rereferred to Ways and Means. H.J. 20. [HF614 Detail]

Download: Iowa-2017-HF614-Introduced.html

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House File 614 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 42)

                                      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 1798HV (3) 87
    md/sc/rj

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 shall
  1 10 be allowed for ten consecutive years beginning not earlier
  1 11 than the assessment year following the year that the system
  1 12 was placed in service. The exemption shall apply to any value
  1 13 added by the addition of mechanical, electrical, plumbing,
  1 14 ductwork, or other equipment, labor, and expenses included
  1 15 in or required for the construction or installation of the
  1 16 geothermal system, as well as the proportionate value of any
  1 17 well field associated with the system and attributable to the
  1 18 owner.
  1 19    b.  A person claiming an exemption under this subsection
  1 20 shall obtain the appropriate forms from the assessor. The
  1 21 forms shall be prescribed by the director of revenue. The
  1 22 claim shall be filed no later than February 1 of the first
  1 23 assessment year the exemption is requested and shall contain
  1 24 information pertaining to all costs and other information
  1 25 associated with construction and installation of the system.
  1 26 Once the exemption is allowed, the exemption shall continue to
  1 27 be allowed for ten consecutive years without further filing as
  1 28 long as the property continues to be classified as residential,
  1 29 multiresidential, commercial, industrial, or agricultural
  1 30  property.
  1 31    Sec. 2.  IMPLEMENTATION.  Section 25B.7 does not apply to the
  1 32 property tax exemption enacted in this Act.
  1 33    Sec. 3.  APPLICABILITY.  This Act applies to assessment years
  1 34 beginning on or after January 1, 2018.
  1 35                           EXPLANATION
  2  1 The inclusion of this explanation does not constitute agreement with
  2  2 the explanation's substance by the members of the general assembly.
  2  3    Current Code section 427.1(38) provides a property
  2  4 tax exemption on the value added by any new or refitted
  2  5 construction or installation of a geothermal heating or cooling
  2  6 system on or after July 1, 2012, on property classified as
  2  7 residential. Under current law, that exemption is allowed for
  2  8 10 consecutive years.
  2  9    This bill authorizes the exemption for the valve added by any
  2 10 new or refitted construction or installation of a geothermal
  2 11 heating or cooling system on or after July 1, 2017, on property
  2 12 classified as multiresidential, commercial, industrial, or
  2 13 agricultural property.
  2 14    The bill provides that the 10=year exemption period begins
  2 15 not earlier than the assessment year following the year that
  2 16 the system was placed in service.
  2 17    The bill makes inapplicable Code section 25B.7. Code
  2 18 section 25B.7 provides that for a property tax credit or
  2 19 exemption enacted on or after January 1, 1997, if a state
  2 20 appropriation made to fund the credit or exemption is not
  2 21 sufficient to fully fund the credit or exemption, the political
  2 22 subdivision shall be required to extend to the taxpayer only
  2 23 that portion of the credit or exemption estimated by the
  2 24 department of revenue to be funded by the state appropriation.
  2 25    The bill applies to assessment years beginning on or after
  2 26 January 1, 2018.
       LSB 1798HV (3) 87
       md/sc/rj