Bill Text: IA SSB1252 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the assessment and taxation of pipeline companies and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-04-02 - Subcommittee: Feenstra, Giddens, and R. Smith. [SSB1252 Detail]
Download: Iowa-2019-SSB1252-Introduced.html
Senate
Study
Bill
1252
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
relating
to
the
assessment
and
taxation
of
pipeline
1
companies
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2578XC
(2)
88
md/jh
S.F.
_____
Section
1.
Section
438.2,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
2A.
“Personal
equipment
property”
,
as
3
used
in
this
chapter,
means
all
of
the
following
if
used
in
4
the
operation
of
the
pipeline
company
and
not
“attached”
as
5
defined
in
section
427A.1,
subsection
2,
to
the
real
estate
or
6
pipelines
of
the
pipeline
company:
7
a.
Office
furniture,
equipment,
and
computers.
8
b.
Transportation
equipment.
9
c.
Tools,
shop,
garage,
and
stores
equipment.
10
d.
Laboratory
equipment.
11
e.
Power-operated
equipment.
12
f.
Communications
equipment.
13
Sec.
2.
Section
438.3,
subsection
9,
Code
2019,
is
amended
14
to
read
as
follows:
15
9.
Any
and
all
other
property
owned
by
said
the
pipeline
16
company
within
the
state
which
property
must
be
classified
17
and
scheduled
in
such
a
manner
as
the
director
of
revenue
may
18
by
rule
require.
For
assessment
years
beginning
on
or
after
19
January
1,
2020,
the
information
provided
under
this
subsection
20
shall
also
identify
that
portion
of
the
property
owned
by
the
21
pipeline
company
that
is
personal
equipment
property.
22
Sec.
3.
Section
438.13,
Code
2019,
is
amended
to
read
as
23
follows:
24
438.13
Basis
of
valuation
and
assessment.
25
1.
The
said
Each
company’s
property
shall
be
valued
at
26
its
actual
value,
and
the
assessments
shall
be
made
upon
the
27
taxable
value
of
the
entire
pipeline
property
within
the
state,
28
except
as
otherwise
provided,
and
the
actual
and
taxable
29
value
so
ascertained
shall
be
assessed
as
provided
by
section
30
441.21
;
and
shall
include
the
rights-of-way,
easements,
the
31
pipelines,
stations,
grounds,
shops,
buildings,
pumps,
and
32
all
other
property,
real
and
personal
exclusively
used
in
the
33
operation
of
such
pipeline
,
subject
to
the
exemption
provided
34
in
subsection
2
.
In
assessing
said
the
pipeline
company
and
35
-1-
LSB
2578XC
(2)
88
md/jh
1/
3
S.F.
_____
its
equipment
company’s
taxable
property
,
the
department
of
1
revenue
shall
take
into
consideration
the
gross
earnings
and
2
the
net
earnings
for
the
entire
property,
and
per
mile,
for
3
the
year
ending
December
31
preceding,
and
any
and
all
other
4
matters
necessary
to
enable
the
department
to
make
a
just
and
5
equitable
assessment
of
said
the
pipeline
property.
6
2.
For
assessment
years
beginning
on
or
after
January
1,
7
2020,
pipeline
company
property
that
is
personal
equipment
8
property
shall
not
be
assessed
and
taxed
under
this
chapter.
9
Sec.
4.
IMPLEMENTATION.
Section
25B.7
shall
not
apply
to
10
this
Act.
11
Sec.
5.
SAVINGS
PROVISION.
This
Act,
pursuant
to
section
12
4.13,
does
not
affect
the
operation
of,
or
prohibit
the
13
application
of,
prior
provisions
of
chapter
438,
or
rules
14
adopted
under
chapter
17A
to
administer
prior
provisions
of
15
chapter
438,
for
assessment
years
beginning
before
January
1,
16
2020,
and
for
duties,
powers,
protests,
appeals,
proceedings,
17
actions,
or
remedies
attributable
to
an
assessment
year
18
beginning
before
January
1,
2020.
19
Sec.
6.
APPLICABILITY.
This
Act
applies
to
assessment
years
20
beginning
on
or
after
January
1,
2020.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
the
assessment
and
taxation
of
pipeline
25
companies.
Under
Code
chapter
438,
pipeline
companies
are
26
assessed
by
the
department
of
revenue
for
property
tax
purposes
27
on
all
property,
real
and
personal,
owned
by
the
pipeline
28
company
and
used
in
the
operation
of
the
pipeline.
The
29
valuation
determined
by
the
department
of
revenue
is
then
30
reported
and
apportioned
to
the
local
taxing
districts
and
the
31
value
is
taxed
in
the
same
manner
as
other
property
within
the
32
applicable
taxing
districts.
33
The
bill
provides
that
for
assessment
years
beginning
on
34
or
after
January
1,
2020,
pipeline
company
property
that
is
35
-2-
LSB
2578XC
(2)
88
md/jh
2/
3
S.F.
_____
personal
equipment
property
shall
not
be
assessed
and
taxed
1
under
Code
chapter
438.
Accordingly,
the
bill
requires
2
the
annual
property
statement
prepared
and
filed
by
each
3
pipeline
company
with
the
department
of
revenue
to
identify
4
the
company’s
personal
equipment
property.
The
bill
defines
5
“personal
equipment
property”
to
include
the
following
if
used
6
in
the
operation
of
the
pipeline
company
and
not
attached
to
7
the
real
estate
or
pipelines
of
the
pipeline
company:
(1)
8
office
furniture,
equipment,
and
computers;
(2)
transportation
9
equipment;
(3)
tools,
shop,
garage,
and
stores
equipment;
(4)
10
laboratory
equipment;
(5)
power-operated
equipment;
and
(6)
11
communications
equipment.
12
The
bill
applies
to
assessment
years
beginning
on
or
after
13
January
1,
2020.
14
-3-
LSB
2578XC
(2)
88
md/jh
3/
3
