Bill Text: IA SF2388 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to the assessment and taxation of telephone and telegraph company property for certain assessment years and including effective date and applicability provisions. (Formerly SSB 3152.) Various effective dates; see sections 27 and 28 of bill.
Spectrum: Committee Bill
Status: (Passed) 2018-05-17 - Signed by Governor. S.J. 1087. [SF2388 Detail]
Download: Iowa-2017-SF2388-Enrolled.html
Senate File 2388 - Enrolled
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SSB
3152)
\5
A BILL FOR
\1
Senate File 2388
AN ACT
RELATING TO THE ASSESSMENT AND TAXATION OF TELEPHONE AND
TELEGRAPH COMPANY PROPERTY FOR CERTAIN ASSESSMENT YEARS AND
INCLUDING EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 29C.24, subsection 3, paragraph a,
subparagraph (6), Code 2018, is amended to read as follows:
(6) The assessment of property taxes by the department
of revenue under sections 428.24 through 428.26, 428.28, and
428.29, or chapters 433, 434, 435, and 437 through 438, or by
a local assessor under another provision of law, on property
brought into the state to aid in the performance of disaster
or emergency=related work during a disaster response period if
such property does not remain in the state after the conclusion
of the disaster response period.
Sec. 2. Section 331.401, subsection 1, paragraph k, Code
2018, is amended to read as follows:
k. Levy taxes as certified to it by tax=certifying bodies
in the county, in accordance with the statutes authorizing the
levies and in accordance with chapter 24 and sections 444.1 to
444.8, and levy taxes as required in chapters 433, 434, 437,
and 438.
Sec. 3. Section 331.427, subsection 1, unnumbered paragraph
1, Code 2018, is amended to read as follows:
Except as otherwise provided by state law, county revenues
from taxes and other sources for general county services shall
be credited to the general fund of the county, including
revenues received under sections 9I.11, 101A.3, 101A.7, 123.36,
123.143, 142D.9, 176A.8, 321.105, 321.152, 321G.7, 321I.8,
section 331.554, subsection 6, sections 341A.20, 364.3, 368.21,
423A.7, 428A.8, 433.15, 434.19, 445.57, 453A.35, 458A.21,
483A.12, 533.329, 556B.1, 583.6, 602.8108, 904.908, and 906.17,
and the following:
Sec. 4. Section 331.512, subsection 7, Code 2018, is amended
by striking the subsection.
Sec. 5. Section 331.559, subsection 17, Code 2018, is
amended by striking the subsection.
Sec. 6. Section 427.1, subsection 2, Code 2018, is amended
to read as follows:
2. Municipal and military property. The property of a
county, township, city, school corporation, levee district,
drainage district, district organized under chapter 357E, or
the Iowa national guard, when devoted to public use and not
held for pecuniary profit, except property of a municipally
owned electric utility held under joint ownership and property
of an electric power facility financed under chapter 28F or
476A that shall be subject to taxation under chapter 437A
and facilities of a municipal utility that are used for the
provision of local exchange services pursuant to chapter 476,
but only to the extent such facilities are used to provide such
services, which shall be subject to taxation under chapter 433,
except that section 433.11 shall not apply. The exemption for
property owned by a city or county also applies to property
which is operated by a city or county as a library, art
gallery or museum, conservatory, botanical garden or display,
observatory or science museum, or as a location for holding
athletic contests, sports or entertainment events, expositions,
meetings or conventions, or leased from the city or county for
any such purposes, or leased from the city or county by the
Iowa national guard or by a federal agency for the benefit of
the Iowa national guard when devoted for public use and not
for pecuniary profit. Food and beverages may be served at the
events or locations without affecting the exemptions, provided
the city has approved the serving of food and beverages on the
property if the property is owned by the city or the county
has approved the serving of food and beverages on the property
if the property is owned by the county. The exemption for
property owned by a city or county also applies to property
which is located at an airport and leased to a fixed base
operator providing aeronautical services to the public.
Sec. 7. Section 427.1, subsection 40, paragraph a, Code
2018, is amended to read as follows:
a. The owner of broadband infrastructure shall be entitled
to an exemption from taxation to the extent provided in this
subsection for assessment years beginning before January
1, 2022. For the purposes of this subsection, "broadband
infrastructure" and "targeted service area" mean the same as
defined in section 8B.1.
Sec. 8. Section 427.1, subsection 40, Code 2018, is amended
by adding the following new paragraph:
NEW PARAGRAPH. i. This subsection is repealed July 1, 2024.
Sec. 9. Section 427A.1, subsection 1, paragraphs c and d,
Code 2018, are amended to read as follows:
c. 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 taxed under chapter 435, and property that is
a concrete batch plant as that term is defined in subsection 4,
and to the extent provided in subsection 6A, property that is
transmission property shall not be assessed and taxed as real
property.
d. Buildings, structures, equipment, machinery or
improvements, any of which are attached to the buildings,
structures, or improvements defined in paragraph "c" of this
subsection. However, to the extent provided in subsection 6A,
property that is transmission property shall not be assessed
and taxed as real property.
Sec. 10. Section 427A.1, subsection 1, paragraph h, Code
2018, is amended to read as follows:
h. Property assessed by the department of revenue pursuant
to sections 428.24 to 428.29, or chapters 433, 434, 437, 437A,
437B, and 438.
Sec. 11. Section 427A.1, Code 2018, is amended by adding the
following new subsection:
NEW SUBSECTION. 6A. a. For purposes of this section,
"transmission property" means cable and wire facilities,
poles, aerial cable, underground cable, buried cable,
intrabuilding network cable, or aerial wire within the meaning
of and for purposes of the uniform system of accounts for
telecommunication companies in 47 C.F.R. pt. 32, in effect on
the effective date of this Act. "Transmission property" also
includes lines, electronic equipment, headend electronics,
poles, aerial cable, cable drops, lasers, fiber optics,
underground cable, and any electronics attached thereto used to
provide telecommunications service, cable television signals,
or internet service to subscribers. "Transmission property"
does not include a tower as defined in section 8C.2.
b. Transmission property that is not subject to assessment
and taxation under chapter 433, shall be subject to assessment
and taxation as follows:
(1) For the assessment year beginning January 1, 2019, at
seventy=five percent of the transmission property's actual
value.
(2) For the assessment year beginning January 1, 2020, at
fifty percent of the transmission property's actual value.
(3) For the assessment year beginning January 1, 2021, at
thirty percent of the transmission property's actual value.
(4) For the assessment year beginning January 1, 2022, and
each subsequent assessment year, transmission property shall
not be assessed and taxed as real property.
Sec. 12. Section 427B.17, subsection 8, paragraph a, Code
2018, is amended to read as follows:
a. This section shall not apply to property assessed by the
department of revenue pursuant to sections 428.24 to 428.29, or
chapters 433, 434, 437, 437A, 437B, and 438, and such property
shall not receive the benefits of this section.
Sec. 13. Section 429.1, Code 2018, is amended to read as
follows:
429.1 Notice of assessment.
The department of revenue shall, at the time of making
the assessment of property as provided in chapters 428, 433,
434, 437, and 438, inform the person assessed, by mail, of
the valuation put upon the taxpayer's property. The notice
shall contain a notice of the taxpayer's right of appeal to the
director of revenue as provided in section 429.2.
Sec. 14. Section 433.4, Code 2018, is amended by adding the
following new subsection:
NEW SUBSECTION. 3. For the assessment years beginning
January 1, 2019, January 1, 2020, and January 1, 2021,
following the partial exemption from taxation under subsection
2, each company assessed for taxation under this chapter shall
receive an additional exemption from taxation on the value of
the company's property as provided in this subsection.
a. For the assessment year beginning January 1, 2019, the
amount of the additional exemption for each company shall be
equal to twenty=five percent of the amount of the company's
actual value, as determined under subsection 1, remaining
following application of the exemption under subsection 2 for
the assessment year.
b. For the assessment year beginning January 1, 2020, the
amount of the additional exemption for each company shall be
equal to fifty percent of the amount of the company's actual
value, as determined under subsection 1, remaining following
application of the exemption under subsection 2 for the
assessment year.
c. For the assessment year beginning January 1, 2021, the
amount of the additional exemption for each company shall be
equal to seventy percent of the amount of the company's actual
value, as determined under subsection 1, remaining following
application of the exemption under subsection 2 for the
assessment year.
Sec. 15. Section 433.5, subsection 2, Code 2018, is amended
to read as follows:
2. The department of revenue shall ascertain the exemption
value per mile of the property of each company within this
state by dividing the amount of the total exemption for that
company determined under section 433.4, subsection subsections
2 and 3, by the number of miles of line of such company within
the state, and the result shall be deemed and held to be the
exemption value per mile of line for that company.
Sec. 16. NEW SECTION. 433.16 Applicability == future
repeal.
1. This chapter applies to the assessment and taxation of
telephone and telegraph company property for assessment years
beginning before January 1, 2022.
2. This chapter is repealed on July 1, 2024.
Sec. 17. Section 437.15, Code 2018, is amended to read as
follows:
437.15 Reassessment == procedure and requirements.
Sections 433.14, and 433.15, Code 2018, and sections 439.1,
and 439.2 shall apply to the property of transmission lines
which are referred to in section 437.2.
Sec. 18. Section 441.19, subsection 1, paragraph a, Code
2018, is amended to read as follows:
a. Supplemental and optional to the procedure for the
assessment of property by the assessor as provided in this
chapter, the assessor may require from all persons required
to list their property for taxation as provided by sections
428.1 and 428.2, a supplemental return to be prescribed by
the director of revenue upon which the person shall list
the person's property. The supplemental return shall be in
substantially the same form as now prescribed by law for
the assessment rolls used in the listing of property by the
assessors. However, for assessment years beginning on or after
January 1, 2018, and unless otherwise required for property
valued by the department of revenue pursuant to chapters 428,
433, 437, and 438, a supplemental return shall not request,
and a person shall not be otherwise required to provide to the
assessor for property assessment purposes, sales or receipts
data, expense data, balance sheets, bank account information,
or other data related to the financial condition of a business
operating in whole or in part on the property if the property
is both classified as commercial or industrial property and
owned and used by the owner of the business. Every person
required to list property for taxation shall make a complete
listing of the property upon supplemental forms and return the
listing to the assessor as promptly as possible. The return
shall be verified over the signature of the person making the
return and section 441.25 applies to any person making such
a return. The assessor shall make supplemental return forms
available as soon as practicable after the first day of January
of each year. The assessor shall make supplemental return
forms available to the taxpayer by mail, or at a designated
place within the taxing district.
Sec. 19. Section 441.21, subsection 2, Code 2018, is amended
to read as follows:
2. In the event market value of the property being assessed
cannot be readily established in the foregoing manner, then
the assessor may determine the value of the property using the
other uniform and recognized appraisal methods including its
productive and earning capacity, if any, industrial conditions,
its cost, physical and functional depreciation and obsolescence
and replacement cost, and all other factors which would assist
in determining the fair and reasonable market value of the
property but the actual value shall not be determined by use
of only one such factor. The following shall not be taken into
consideration: Special value or use value of the property to
its present owner, and the goodwill or value of a business
which uses the property as distinguished from the value of
the property as property. In addition, for assessment years
beginning on or after January 1, 2018, and unless otherwise
required for property valued by the department of revenue
pursuant to chapters 428, 433, 437, and 438, the assessor
shall not take into consideration and shall not request from
any person sales or receipts data, expense data, balance
sheets, bank account information, or other data related to
the financial condition of a business operating in whole or
in part on the property if the property is both classified as
commercial or industrial property and owned and used by the
owner of the business. However, in assessing property that
is rented or leased to low=income individuals and families
as authorized by section 42 of the Internal Revenue Code,
as amended, and which section limits the amount that the
individual or family pays for the rental or lease of units
in the property, the assessor shall, unless the owner elects
to withdraw the property from the assessment procedures for
section 42 property, use the productive and earning capacity
from the actual rents received as a method of appraisal and
shall take into account the extent to which that use and
limitation reduces the market value of the property. The
assessor shall not consider any tax credit equity or other
subsidized financing as income provided to the property in
determining the assessed value. The property owner shall
notify the assessor when property is withdrawn from section 42
eligibility under the Internal Revenue Code or if the owner
elects to withdraw the property from the assessment procedures
for section 42 property under this subsection. The property
shall not be subject to section 42 assessment procedures
for the assessment year for which section 42 eligibility is
withdrawn or an election is made. This notification must
be provided to the assessor no later than March 1 of the
assessment year or the owner will be subject to a penalty of
five hundred dollars for that assessment year. The penalty
shall be collected at the same time and in the same manner
as regular property taxes. An election to withdraw from the
assessment procedures for section 42 property is irrevocable.
Property that is withdrawn from the assessment procedures
for section 42 property shall be classified and assessed as
multiresidential property unless the property otherwise fails
to meet the requirements of section 441.21, subsection 13.
Upon adoption of uniform rules by the department of revenue
or succeeding authority covering assessments and valuations
of such properties, the valuation on such properties shall be
determined in accordance with such rules and in accordance with
forms and guidelines contained in the real property appraisal
manual prepared by the department as updated from time to time
for assessment purposes to assure uniformity, but such rules,
forms, and guidelines shall not be inconsistent with or change
the foregoing means of determining the actual, market, taxable,
and assessed values.
Sec. 20. Section 441.21, subsection 5, paragraph a, Code
2018, is amended to read as follows:
a. For valuations established as of January 1, 1979,
property valued by the department of revenue pursuant to
chapters 428, 433, 437, and 438 shall be considered as one
class of property and shall be assessed as a percentage of
its actual value. The percentage shall be determined by the
director of revenue in accordance with the provisions of this
section. For valuations established as of January 1, 1979, the
percentage shall be the quotient of the dividend and divisor
as defined in this section. The dividend shall be the total
actual valuation established for 1978 by the department of
revenue, plus ten percent of the amount so determined. The
divisor for property valued by the department of revenue
pursuant to chapters 428, 433, 437, and 438 shall be the
valuation established for 1978, plus the amount of value added
to the total actual value by the revaluation of the property
by the department of revenue as of January 1, 1979. For
valuations established as of January 1, 1980, property valued
by the department of revenue pursuant to chapters 428, 433,
437, and 438 shall be assessed at a percentage of its actual
value. The percentage shall be determined by the director of
revenue in accordance with the provisions of this section. For
valuations established as of January 1, 1980, the percentage
shall be the quotient of the dividend and divisor as defined in
this section. The dividend shall be the total actual valuation
established for 1979 by the department of revenue, plus eight
percent of the amount so determined. The divisor for property
valued by the department of revenue pursuant to chapters 428,
433, 437, and 438 shall be the valuation established for 1979,
plus the amount of value added to the total actual value by the
revaluation of the property by the department of revenue as of
January 1, 1980. For valuations established as of January 1,
1981, and each year thereafter, the percentage of actual value
at which property valued by the department of revenue pursuant
to chapters 428, 433, 437, and 438 shall be assessed shall be
calculated in accordance with the methods provided herein,
except that any references to ten percent in this subsection
shall be eight percent. For valuations established on or after
January 1, 2013, property valued by the department of revenue
pursuant to chapter 434 shall be assessed at a percentage of
its actual value equal to the percentage of actual value at
which property assessed as commercial property is assessed
under paragraph "b" for the same assessment year.
Sec. 21. Section 441.21, subsections 9 and 10, Code 2018,
are amended to read as follows:
9. Not later than November 1, 1979, and November 1 of each
subsequent year, the director shall certify to the county
auditor of each county the percentages of actual value at
which residential property, agricultural property, commercial
property, industrial property, multiresidential property,
property valued by the department of revenue pursuant to
chapter 434, and property valued by the department of revenue
pursuant to chapters 428, 433, 437, and 438 in each assessing
jurisdiction in the county shall be assessed for taxation. The
county auditor shall proceed to determine the assessed values
of agricultural property, residential property, commercial
property, industrial property, multiresidential property,
property valued by the department of revenue pursuant to
chapter 434, and property valued by the department of revenue
pursuant to chapters 428, 433, 437, and 438 by applying such
percentages to the current actual value of such property,
as reported to the county auditor by the assessor, and the
assessed values so determined shall be the taxable values of
such properties upon which the levy shall be made.
10. The percentage of actual value computed by the
department of revenue for agricultural property, residential
property, commercial property, industrial property,
multiresidential property, property valued by the department
of revenue pursuant to chapter 434, and property valued by the
department of revenue pursuant to chapters 428, 433, 437, and
438 and used to determine assessed values of those classes
of property does not constitute a rule as defined in section
17A.2, subsection 11.
Sec. 22. Section 441.73, subsection 1, Code 2018, is amended
to read as follows:
1. A litigation expense fund is created in the state
treasury. The litigation expense fund shall be used for the
payment of litigation expenses incurred by the state to defend
property valuations established by the director of revenue
pursuant to section 428.24 and chapters 433, 434, 437, 437A,
437B, and 438, and for the payment of litigation expenses
incurred by the state to defend the imposition of replacement
taxes and statewide property taxes under chapters 437A and
437B.
Sec. 23. Section 476.1D, subsection 10, Code 2018, is
amended by striking the subsection.
Sec. 24. FUTURE ASSESSMENT YEARS. Telephone and telegraph
company property subject to assessment under chapter 433 for
assessment years beginning before January 1, 2022, shall be,
for assessment years beginning on or after January 1, 2022,
assessed by local assessors under chapters 427, 427A, 427B,
428, and 441, and any other applicable provision of law in the
same manner and on the same basis as other commercial property
located in the assessing jurisdiction where situated.
Sec. 25. SAVINGS PROVISION. Except as specifically
provided, this Act, pursuant to section 4.13, does not affect
the operation of, or prohibit the application of, prior
provisions of chapter 433, or rules adopted under chapter 17A
to administer prior provisions of chapter 433, for assessment
years beginning before January 1, 2022, and for duties,
powers, protests, appeals, proceedings, actions, or remedies
attributable to an assessment year beginning before January 1,
2022.
Sec. 26. IMPLEMENTATION. Section 25B.7 shall not apply to
this Act.
Sec. 27. EFFECTIVE DATE. The following take effect July 1,
2021:
1. The section of this Act amending section 476.1D.
Sec. 28. EFFECTIVE DATE. The following take effect July 1,
2024:
1. The section of this Act amending section 29C.24.
2. The section of this Act amending section 331.401.
3. The section of this Act amending section 331.427.
4. The section of this Act amending section 331.512.
5. The section of this Act amending section 331.559.
6. The section of this Act amending section 427.1,
subsection 2.
7. The section of this Act amending section 427A.1,
subsection 1, paragraph "h".
8. The section of this Act amending section 427B.17.
9. The section of this Act amending section 429.1.
10. The section of this Act amending section 437.15.
11. The section of this Act amending section 441.19.
12. The section of this Act amending section 441.21,
subsection 2.
13. The section of this Act amending section 441.21,
subsection 5.
14. The section of this Act amending section 441.21,
subsections 9 and 10.
15. The section of this Act amending section 441.73.
Sec. 29. APPLICABILITY. The following apply to assessment
years beginning on or after January 1, 2022:
1. The section of this Act amending section 476.1D.
CHARLES SCHNEIDE
LINDA UPMEYER
W. CHARLES SMITH
KIM REYNOLDS
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