Bill Text: IA SF2388 | 2017-2018 | 87th General Assembly | Amended
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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-Amended.html
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-Amended.html
Senate File 2388 - Reprinted SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 3152) (As Amended and Passed by the Senate March 27, 2018) A BILL FOR 1 An Act relating to the assessment and taxation of telephone and 2 telegraph company property for certain assessment years and 3 including effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: SF 2388 (3) 87 md/rn/ko PAG LIN 1 1 Section 1. Section 29C.24, subsection 3, paragraph a, 1 2 subparagraph (6), Code 2018, is amended to read as follows: 1 3 (6) The assessment of property taxes by the department 1 4 of revenue under sections 428.24 through 428.26, 428.28, and 1 5 428.29, or chapters433,434, 435, and 437 through 438, or by 1 6 a local assessor under another provision of law, on property 1 7 brought into the state to aid in the performance of disaster 1 8 or emergency=related work during a disaster response period if 1 9 such property does not remain in the state after the conclusion 1 10 of the disaster response period. 1 11 Sec. 2. Section 331.401, subsection 1, paragraph k, Code 1 12 2018, is amended to read as follows: 1 13 k. Levy taxes as certified to it by tax=certifying bodies 1 14 in the county, in accordance with the statutes authorizing the 1 15 levies and in accordance with chapter 24 and sections 444.1 to 1 16 444.8, and levy taxes as required in chapters433,434, 437, 1 17 and 438. 1 18 Sec. 3. Section 331.427, subsection 1, unnumbered paragraph 1 19 1, Code 2018, is amended to read as follows: 1 20 Except as otherwise provided by state law, county revenues 1 21 from taxes and other sources for general county services shall 1 22 be credited to the general fund of the county, including 1 23 revenues received under sections 9I.11, 101A.3, 101A.7, 123.36, 1 24 123.143, 142D.9, 176A.8, 321.105, 321.152, 321G.7, 321I.8, 1 25 section 331.554, subsection 6, sections 341A.20, 364.3, 368.21, 1 26 423A.7, 428A.8,433.15,434.19, 445.57, 453A.35, 458A.21, 1 27 483A.12, 533.329, 556B.1, 583.6, 602.8108, 904.908, and 906.17, 1 28 and the following: 1 29 Sec. 4. Section 331.512, subsection 7, Code 2018, is amended 1 30 by striking the subsection. 1 31 Sec. 5. Section 331.559, subsection 17, Code 2018, is 1 32 amended by striking the subsection. 1 33 Sec. 6. Section 427.1, subsection 2, Code 2018, is amended 1 34 to read as follows: 1 35 2. Municipal and military property. The property of a 2 1 county, township, city, school corporation, levee district, 2 2 drainage district, district organized under chapter 357E, or 2 3 the Iowa national guard, when devoted to public use and not 2 4 held for pecuniary profit, except property of a municipally 2 5 owned electric utility held under joint ownership and property 2 6 of an electric power facility financed under chapter 28F or 2 7 476A that shall be subject to taxation under chapter 437A 2 8 and facilities of a municipal utility that are used for the 2 9 provision of local exchange services pursuant to chapter 476, 2 10 but only to the extent such facilities are used to provide such 2 11 services, which shall be subject to taxation under chapter 433, 2 12 except that section 433.11 shall not apply. The exemption for 2 13 property owned by a city or county also applies to property 2 14 which is operated by a city or county as a library, art 2 15 gallery or museum, conservatory, botanical garden or display, 2 16 observatory or science museum, or as a location for holding 2 17 athletic contests, sports or entertainment events, expositions, 2 18 meetings or conventions, or leased from the city or county for 2 19 any such purposes, or leased from the city or county by the 2 20 Iowa national guard or by a federal agency for the benefit of 2 21 the Iowa national guard when devoted for public use and not 2 22 for pecuniary profit. Food and beverages may be served at the 2 23 events or locations without affecting the exemptions, provided 2 24 the city has approved the serving of food and beverages on the 2 25 property if the property is owned by the city or the county 2 26 has approved the serving of food and beverages on the property 2 27 if the property is owned by the county. The exemption for 2 28 property owned by a city or county also applies to property 2 29 which is located at an airport and leased to a fixed base 2 30 operator providing aeronautical services to the public. 2 31 Sec. 7. Section 427.1, subsection 40, paragraph a, Code 2 32 2018, is amended to read as follows: 2 33 a. The owner of broadband infrastructure shall be entitled 2 34 to an exemption from taxation to the extent provided in 2 35 this subsectionfor assessment years beginning before January 3 1 1, 2022. For the purposes of this subsection, "broadband 3 2 infrastructure" and "targeted service area" mean the same as 3 3 defined in section 8B.1. 3 4 Sec. 8. Section 427.1, subsection 40, Code 2018, is amended 3 5 by adding the following new paragraph: 3 6 NEW PARAGRAPH. i. This subsection is repealed July 1, 2024. 3 7 Sec. 9. Section 427A.1, subsection 1, paragraphs c and d, 3 8 Code 2018, are amended to read as follows: 3 9 c. Buildings, structures or improvements, any of which are 3 10 constructed on or in the land, attached to the land, or placed 3 11 upon a foundation whether or not attached to the foundation. 3 12 However, property taxed under chapter 435,andproperty that is 3 13 a concrete batch plant as that term is defined in subsection 3 14 4, and property that is transmission property as defined in 3 15 subsection 6A shall not be assessed and taxed as real property. 3 16 d. Buildings, structures, equipment, machinery or 3 17 improvements, any of which are attached to the buildings, 3 18 structures, or improvements defined in paragraph "c" of this 3 19 subsection. However, property that is transmission property 3 20 as defined in subsection 6A shall not be assessed and taxed as 3 21 real property. 3 22 Sec. 10. Section 427A.1, subsection 1, paragraph h, Code 3 23 2018, is amended to read as follows: 3 24 h. Property assessed by the department of revenue pursuant 3 25 to sections 428.24 to 428.29, or chapters433,434, 437, 437A, 3 26 437B, and 438. 3 27 Sec. 11. Section 427A.1, Code 2018, is amended by adding the 3 28 following new subsection: 3 29 NEW SUBSECTION. 6A. For purposes of this section, 3 30 "transmission property" means cable and wire facilities, 3 31 poles, aerial cable, underground cable, buried cable, 3 32 intrabuilding network cable, or aerial wire within the meaning 3 33 of and for purposes of the uniform system of accounts for 3 34 telecommunication companies in 47 C.F.R. pt. 32, in effect on 3 35 the effective date of this Act. "Transmission property" also 4 1 includes lines, electronic equipment, headend electronics, 4 2 towers, poles, aerial cable, cable drops, lasers, fiber optics, 4 3 underground cable, and any electronics attached thereto used to 4 4 provide telecommunications service, cable television signals, 4 5 or internet service to subscribers. 4 6 Sec. 12. Section 427B.17, subsection 8, paragraph a, Code 4 7 2018, is amended to read as follows: 4 8 a. This section shall not apply to property assessed by the 4 9 department of revenue pursuant to sections 428.24 to 428.29, or 4 10 chapters433,434, 437, 437A, 437B, and 438, and such property 4 11 shall not receive the benefits of this section. 4 12 Sec. 13. Section 429.1, Code 2018, is amended to read as 4 13 follows: 4 14 429.1 Notice of assessment. 4 15 The department of revenue shall, at the time of making 4 16 the assessment of property as provided in chapters 428,433,4 17 434, 437, and 438, inform the person assessed, by mail, of 4 18 the valuation put upon the taxpayer's property. The notice 4 19 shall contain a notice of the taxpayer's right of appeal to the 4 20 director of revenue as provided in section 429.2. 4 21 Sec. 14. Section 433.4, Code 2018, is amended by adding the 4 22 following new subsection: 4 23 NEW SUBSECTION. 3. For the assessment years beginning 4 24 January 1, 2019, January 1, 2020, and January 1, 2021, 4 25 following the partial exemption from taxation under subsection 4 26 2, each company assessed for taxation under this chapter shall 4 27 receive an additional exemption from taxation on the value of 4 28 the company's property as provided in this subsection. 4 29 a. For the assessment year beginning January 1, 2019, the 4 30 amount of the additional exemption for each company shall be 4 31 equal to twenty=five percent of the amount of the company's 4 32 actual value, as determined under subsection 1, remaining 4 33 following application of the exemption under subsection 2 for 4 34 the assessment year. 4 35 b. For the assessment year beginning January 1, 2020, the 5 1 amount of the additional exemption for each company shall be 5 2 equal to fifty percent of the amount of the company's actual 5 3 value, as determined under subsection 1, remaining following 5 4 application of the exemption under subsection 2 for the 5 5 assessment year. 5 6 c. For the assessment year beginning January 1, 2021, the 5 7 amount of the additional exemption for each company shall be 5 8 equal to seventy percent of the amount of the company's actual 5 9 value, as determined under subsection 1, remaining following 5 10 application of the exemption under subsection 2 for the 5 11 assessment year. 5 12 Sec. 15. Section 433.5, subsection 2, Code 2018, is amended 5 13 to read as follows: 5 14 2. The department of revenue shall ascertain the exemption 5 15 value per mile of the property of each company within this 5 16 state by dividing the amount of the total exemption for that 5 17 company determined under section 433.4,subsectionsubsections 5 18 2 and 3, by the number of miles of line of such company within 5 19 the state, and the result shall be deemed and held to be the 5 20 exemption value per mile of line for that company. 5 21 Sec. 16. NEW SECTION. 433.16 Applicability == future 5 22 repeal. 5 23 1. This chapter applies to the assessment and taxation of 5 24 telephone and telegraph company property for assessment years 5 25 beginning before January 1, 2022. 5 26 2. This chapter is repealed on July 1, 2024. 5 27 Sec. 17. Section 437.15, Code 2018, is amended to read as 5 28 follows: 5 29 437.15 Reassessment == procedure and requirements. 5 30 Sections 433.14,and 433.15, Code 2018, and sections 439.1,5 31 and 439.2 shall apply to the property of transmission lines 5 32 which are referred to in section 437.2. 5 33 Sec. 18. Section 441.19, subsection 1, paragraph a, Code 5 34 2018, is amended to read as follows: 5 35 a. Supplemental and optional to the procedure for the 6 1 assessment of property by the assessor as provided in this 6 2 chapter, the assessor may require from all persons required 6 3 to list their property for taxation as provided by sections 6 4 428.1 and 428.2, a supplemental return to be prescribed by 6 5 the director of revenue upon which the person shall list 6 6 the person's property. The supplemental return shall be in 6 7 substantially the same form as now prescribed by law for 6 8 the assessment rolls used in the listing of property by the 6 9 assessors. However, for assessment years beginning on or after 6 10 January 1, 2018, and unless otherwise required for property 6 11 valued by the department of revenue pursuant to chapters 428, 6 12433,437, and 438, a supplemental return shall not request, 6 13 and a person shall not be otherwise required to provide to the 6 14 assessor for property assessment purposes, sales or receipts 6 15 data, expense data, balance sheets, bank account information, 6 16 or other data related to the financial condition of a business 6 17 operating in whole or in part on the property if the property 6 18 is both classified as commercial or industrial property and 6 19 owned and used by the owner of the business. Every person 6 20 required to list property for taxation shall make a complete 6 21 listing of the property upon supplemental forms and return the 6 22 listing to the assessor as promptly as possible. The return 6 23 shall be verified over the signature of the person making the 6 24 return and section 441.25 applies to any person making such 6 25 a return. The assessor shall make supplemental return forms 6 26 available as soon as practicable after the first day of January 6 27 of each year. The assessor shall make supplemental return 6 28 forms available to the taxpayer by mail, or at a designated 6 29 place within the taxing district. 6 30 Sec. 19. Section 441.21, subsection 2, Code 2018, is amended 6 31 to read as follows: 6 32 2. In the event market value of the property being assessed 6 33 cannot be readily established in the foregoing manner, then 6 34 the assessor may determine the value of the property using the 6 35 other uniform and recognized appraisal methods including its 7 1 productive and earning capacity, if any, industrial conditions, 7 2 its cost, physical and functional depreciation and obsolescence 7 3 and replacement cost, and all other factors which would assist 7 4 in determining the fair and reasonable market value of the 7 5 property but the actual value shall not be determined by use 7 6 of only one such factor. The following shall not be taken into 7 7 consideration: Special value or use value of the property to 7 8 its present owner, and the goodwill or value of a business 7 9 which uses the property as distinguished from the value of 7 10 the property as property. In addition, for assessment years 7 11 beginning on or after January 1, 2018, and unless otherwise 7 12 required for property valued by the department of revenue 7 13 pursuant to chapters 428,433,437, and 438, the assessor 7 14 shall not take into consideration and shall not request from 7 15 any person sales or receipts data, expense data, balance 7 16 sheets, bank account information, or other data related to 7 17 the financial condition of a business operating in whole or 7 18 in part on the property if the property is both classified as 7 19 commercial or industrial property and owned and used by the 7 20 owner of the business. However, in assessing property that 7 21 is rented or leased to low=income individuals and families 7 22 as authorized by section 42 of the Internal Revenue Code, 7 23 as amended, and which section limits the amount that the 7 24 individual or family pays for the rental or lease of units 7 25 in the property, the assessor shall, unless the owner elects 7 26 to withdraw the property from the assessment procedures for 7 27 section 42 property, use the productive and earning capacity 7 28 from the actual rents received as a method of appraisal and 7 29 shall take into account the extent to which that use and 7 30 limitation reduces the market value of the property. The 7 31 assessor shall not consider any tax credit equity or other 7 32 subsidized financing as income provided to the property in 7 33 determining the assessed value. The property owner shall 7 34 notify the assessor when property is withdrawn from section 42 7 35 eligibility under the Internal Revenue Code or if the owner 8 1 elects to withdraw the property from the assessment procedures 8 2 for section 42 property under this subsection. The property 8 3 shall not be subject to section 42 assessment procedures 8 4 for the assessment year for which section 42 eligibility is 8 5 withdrawn or an election is made. This notification must 8 6 be provided to the assessor no later than March 1 of the 8 7 assessment year or the owner will be subject to a penalty of 8 8 five hundred dollars for that assessment year. The penalty 8 9 shall be collected at the same time and in the same manner 8 10 as regular property taxes. An election to withdraw from the 8 11 assessment procedures for section 42 property is irrevocable. 8 12 Property that is withdrawn from the assessment procedures 8 13 for section 42 property shall be classified and assessed as 8 14 multiresidential property unless the property otherwise fails 8 15 to meet the requirements of section 441.21, subsection 13. 8 16 Upon adoption of uniform rules by the department of revenue 8 17 or succeeding authority covering assessments and valuations 8 18 of such properties, the valuation on such properties shall be 8 19 determined in accordance with such rules and in accordance with 8 20 forms and guidelines contained in the real property appraisal 8 21 manual prepared by the department as updated from time to time 8 22 for assessment purposes to assure uniformity, but such rules, 8 23 forms, and guidelines shall not be inconsistent with or change 8 24 the foregoing means of determining the actual, market, taxable, 8 25 and assessed values. 8 26 Sec. 20. Section 441.21, subsection 5, paragraph a, Code 8 27 2018, is amended to read as follows: 8 28 a. For valuations established as of January 1, 1979, 8 29 property valued by the department of revenue pursuant to 8 30 chapters 428,433,437, and 438 shall be considered as one 8 31 class of property and shall be assessed as a percentage of 8 32 its actual value. The percentage shall be determined by the 8 33 director of revenue in accordance with the provisions of this 8 34 section. For valuations established as of January 1, 1979, the 8 35 percentage shall be the quotient of the dividend and divisor 9 1 as defined in this section. The dividend shall be the total 9 2 actual valuation established for 1978 by the department of 9 3 revenue, plus ten percent of the amount so determined. The 9 4 divisor for property valued by the department of revenue 9 5 pursuant to chapters 428,433,437, and 438 shall be the 9 6 valuation established for 1978, plus the amount of value added 9 7 to the total actual value by the revaluation of the property 9 8 by the department of revenue as of January 1, 1979. For 9 9 valuations established as of January 1, 1980, property valued 9 10 by the department of revenue pursuant to chapters 428,433,9 11 437, and 438 shall be assessed at a percentage of its actual 9 12 value. The percentage shall be determined by the director of 9 13 revenue in accordance with the provisions of this section. For 9 14 valuations established as of January 1, 1980, the percentage 9 15 shall be the quotient of the dividend and divisor as defined in 9 16 this section. The dividend shall be the total actual valuation 9 17 established for 1979 by the department of revenue, plus eight 9 18 percent of the amount so determined. The divisor for property 9 19 valued by the department of revenue pursuant to chapters 428, 9 20433,437, and 438 shall be the valuation established for 1979, 9 21 plus the amount of value added to the total actual value by the 9 22 revaluation of the property by the department of revenue as of 9 23 January 1, 1980. For valuations established as of January 1, 9 24 1981, and each year thereafter, the percentage of actual value 9 25 at which property valued by the department of revenue pursuant 9 26 to chapters 428,433,437, and 438 shall be assessed shall be 9 27 calculated in accordance with the methods provided herein, 9 28 except that any references to ten percent in this subsection 9 29 shall be eight percent. For valuations established on or after 9 30 January 1, 2013, property valued by the department of revenue 9 31 pursuant to chapter 434 shall be assessed at a percentage of 9 32 its actual value equal to the percentage of actual value at 9 33 which property assessed as commercial property is assessed 9 34 under paragraph "b" for the same assessment year. 9 35 Sec. 21. Section 441.21, subsections 9 and 10, Code 2018, 10 1 are amended to read as follows: 10 2 9. Not later than November 1, 1979, and November 1 of each 10 3 subsequent year, the director shall certify to the county 10 4 auditor of each county the percentages of actual value at 10 5 which residential property, agricultural property, commercial 10 6 property, industrial property, multiresidential property, 10 7 property valued by the department of revenue pursuant to 10 8 chapter 434, and property valued by the department of revenue 10 9 pursuant to chapters 428,433,437, and 438 in each assessing 10 10 jurisdiction in the county shall be assessed for taxation. The 10 11 county auditor shall proceed to determine the assessed values 10 12 of agricultural property, residential property, commercial 10 13 property, industrial property, multiresidential property, 10 14 property valued by the department of revenue pursuant to 10 15 chapter 434, and property valued by the department of revenue 10 16 pursuant to chapters 428,433,437, and 438 by applying such 10 17 percentages to the current actual value of such property, 10 18 as reported to the county auditor by the assessor, and the 10 19 assessed values so determined shall be the taxable values of 10 20 such properties upon which the levy shall be made. 10 21 10. The percentage of actual value computed by the 10 22 department of revenue for agricultural property, residential 10 23 property, commercial property, industrial property, 10 24 multiresidential property, property valued by the department 10 25 of revenue pursuant to chapter 434, and property valued by the 10 26 department of revenue pursuant to chapters 428,433,437, and 10 27 438 and used to determine assessed values of those classes 10 28 of property does not constitute a rule as defined in section 10 29 17A.2, subsection 11. 10 30 Sec. 22. Section 441.73, subsection 1, Code 2018, is amended 10 31 to read as follows: 10 32 1. A litigation expense fund is created in the state 10 33 treasury. The litigation expense fund shall be used for the 10 34 payment of litigation expenses incurred by the state to defend 10 35 property valuations established by the director of revenue 11 1 pursuant to section 428.24 and chapters433,434, 437, 437A, 11 2 437B, and 438, and for the payment of litigation expenses 11 3 incurred by the state to defend the imposition of replacement 11 4 taxes and statewide property taxes under chapters 437A and 11 5 437B. 11 6 Sec. 23. Section 476.1D, subsection 10, Code 2018, is 11 7 amended by striking the subsection. 11 8 Sec. 24. FUTURE ASSESSMENT YEARS. Telephone and telegraph 11 9 company property subject to assessment under chapter 433 for 11 10 assessment years beginning before January 1, 2022, shall be, 11 11 for assessment years beginning on or after January 1, 2022, 11 12 assessed by local assessors under chapters 427, 427A, 427B, 11 13 428, and 441, and any other applicable provision of law in the 11 14 same manner and on the same basis as other commercial property 11 15 located in the assessing jurisdiction where situated. 11 16 Sec. 25. SAVINGS PROVISION. Except as specifically 11 17 provided, this Act, pursuant to section 4.13, does not affect 11 18 the operation of, or prohibit the application of, prior 11 19 provisions of chapter 433, or rules adopted under chapter 17A 11 20 to administer prior provisions of chapter 433, for assessment 11 21 years beginning before January 1, 2022, and for duties, 11 22 powers, protests, appeals, proceedings, actions, or remedies 11 23 attributable to an assessment year beginning before January 1, 11 24 2022. 11 25 Sec. 26. IMPLEMENTATION. Section 25B.7 shall not apply to 11 26 this Act. 11 27 Sec. 27. EFFECTIVE DATE. The following take effect July 1, 11 28 2021: 11 29 1. The section of this Act amending section 427A.1, 11 30 subsection 1, paragraphs "c" and "d". 11 31 2. The section of this Act enacting section 427A.1, 11 32 subsection 6A. 11 33 3. The section of this Act amending section 476.1D. 11 34 Sec. 28. EFFECTIVE DATE. The following take effect July 1, 11 35 2024: 12 1 1. The section of this Act amending section 29C.24. 12 2 2. The section of this Act amending section 331.401. 12 3 3. The section of this Act amending section 331.427. 12 4 4. The section of this Act amending section 331.512. 12 5 5. The section of this Act amending section 331.559. 12 6 6. The section of this Act amending section 427.1, 12 7 subsection 2. 12 8 7. The section of this Act amending section 427A.1, 12 9 subsection 1, paragraph "h". 12 10 8. The section of this Act amending section 427B.17. 12 11 9. The section of this Act amending section 429.1. 12 12 10. The section of this Act amending section 437.15. 12 13 11. The section of this Act amending section 441.19. 12 14 12. The section of this Act amending section 441.21, 12 15 subsection 2. 12 16 13. The section of this Act amending section 441.21, 12 17 subsection 5. 12 18 14. The section of this Act amending section 441.21, 12 19 subsections 9 and 10. 12 20 15. The section of this Act amending section 441.73. 12 21 Sec. 29. APPLICABILITY. The following apply to assessment 12 22 years beginning on or after January 1, 2022: 12 23 1. The section of this Act amending section 427A.1, 12 24 subsection 1, paragraphs "c" and "d". 12 25 2. The section of this Act enacting section 427A.1, 12 26 subsection 6A. 12 27 3. The section of this Act amending section 476.1D. SF 2388 (3) 87 md/rn/ko
