Bill Text: IA SSB1055 | 2017-2018 | 87th General Assembly | Introduced


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.

Spectrum: Committee Bill

Status: (N/A - Dead) 2018-01-08 - Subcommittee reassigned: Feenstra, Carlin, and Hogg. S.J. 42. [SSB1055 Detail]

Download: Iowa-2017-SSB1055-Introduced.html
Senate Study Bill 1055 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act relating to the property tax exemption for the value 1 added by certain geothermal heating or cooling systems and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2117XC (2) 87 md/sc
S.F. _____ Section 1. Section 427.1, subsection 38, paragraphs a and b, 1 Code 2017, are amended to read as follows: 2 a. The value added by any new or refitted construction or 3 installation of a geothermal heating or cooling system on or 4 after July 1, 2012, on property classified as residential , 5 or the value added by any new or refitted construction or 6 installation of a geothermal heating or cooling system on or 7 after July 1, 2017, on property classified as multiresidential, 8 commercial, industrial, or agricultural . The exemption 9 shall be allowed for ten consecutive years. The exemption 10 shall apply to any value added by the addition of mechanical, 11 electrical, plumbing, ductwork, or other equipment, labor, 12 and expenses included in or required for the construction 13 or installation of the geothermal system, as well as the 14 proportionate value of any well field associated with the 15 system and attributable to the owner. 16 b. A person claiming an exemption under this subsection 17 shall obtain the appropriate forms from the assessor. The 18 forms shall be prescribed by the director of revenue. The 19 claim shall be filed no later than February 1 of the first 20 assessment year the exemption is requested and shall contain 21 information pertaining to all costs and other information 22 associated with construction and installation of the system. 23 Once the exemption is allowed, the exemption shall continue to 24 be allowed for ten consecutive successive years without further 25 filing as long as the property continues to be classified as 26 residential , multiresidential, commercial, industrial, or 27 agricultural property. 28 Sec. 2. IMPLEMENTATION. Section 25B.7 does not apply to the 29 property tax exemption enacted in this Act. 30 Sec. 3. APPLICABILITY. This Act applies to assessment years 31 beginning on or after January 1, 2018. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 2117XC (2) 87 md/sc 1/ 2
S.F. _____ Current Code section 427.1(38) provides a property 1 tax exemption on the value added by any new or refitted 2 construction or installation of a geothermal heating or cooling 3 system on or after July 1, 2012, on property classified as 4 residential. Under current law, that exemption is allowed for 5 10 consecutive years. 6 This bill authorizes the exemption for the refitted 7 construction or installation of a geothermal heating or cooling 8 system on or after July 1, 2017, on property classified as 9 multiresidential, commercial, industrial, or agricultural 10 property. 11 The bill also removes the 10-year limitation on the duration 12 of the exemption. 13 The bill makes inapplicable Code section 25B.7. Code 14 section 25B.7 provides that for a property tax credit or 15 exemption enacted on or after January 1, 1997, if a state 16 appropriation made to fund the credit or exemption is not 17 sufficient to fully fund the credit or exemption, the political 18 subdivision shall be required to extend to the taxpayer only 19 that portion of the credit or exemption estimated by the 20 department of revenue to be funded by the state appropriation. 21 The bill applies to assessment years beginning on or after 22 January 1, 2018. 23 -2- LSB 2117XC (2) 87 md/sc 2/ 2
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