A bill for an act relating to the assessment of property containing certain aboveground storage tanks and including effective date and retroactive applicability provisions.(Formerly HSB 238 .)

House

File

1050

-

Introduced

HOUSE

FILE

1050

BY

COMMITTEE

ON

WAYS

AND

MEANS

(SUCCESSOR

TO

HSB

238)

A

BILL

FOR

An

Act

relating

to

the

assessment

of

property

containing

1

certain

aboveground

storage

tanks

and

including

effective

2

date

and

retroactive

applicability

provisions.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

TLSB

1702HV

(2)

91

jm/md

H.F.

1050

Section

1.

Section

427A.1,

Code

2025,

is

amended

by

adding

1

the

following

new

subsection:

2

NEW

SUBSECTION

.

6A.

Notwithstanding

the

other

provisions

3

of

this

section,

aboveground

storage

tanks

with

a

capacity

4

of

ninety-one

thousand

gallons

or

less,

no

matter

the

use

or

5

intended

use

in

the

subject

property,

shall

not

be

assessed

and

6

taxed

as

real

property.

7

Sec.

2.

IMPLEMENTATION.

Section

25B.7

shall

not

apply

to

8

this

Act.

9

Sec.

3.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

immediate

10

importance,

takes

effect

upon

enactment.

11

Sec.

4.

RETROACTIVE

APPLICABILITY.

This

Act

applies

12

retroactively

to

assessment

years

beginning

on

or

after

January

13

1,

2025.

14

EXPLANATION

15

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

16

the

explanation’s

substance

by

the

members

of

the

general

assembly.

17

Code

section

427A.1

specifies

that

for

the

purposes

of

18

property

taxation

only,

certain

property

shall

be

assessed

19

and

taxed,

unless

otherwise

qualified

for

exemption,

as

real

20

property,

including

buildings,

structures,

or

improvements,

any

21

of

which

are

constructed

on

or

in

the

land,

attached

to

the

22

land,

or

placed

upon

a

foundation

whether

or

not

attached

to

23

the

foundation.

However,

property

is

not

“attached”

if

it

is

24

a

kind

of

property

which

would

ordinarily

be

removed

when

the

25

owner

of

the

property

moves

to

another

location.

26

This

bill

provides

that

aboveground

storage

tanks

with

27

a

capacity

of

91,000

gallons

or

less,

no

matter

the

use

or

28

intended

use

in

the

subject

property,

shall

not

be

assessed

and

29

taxed

as

real

property.

30

The

bill

makes

inapplicable

Code

section

25B.7.

Code

31

section

25B.7

provides

that

for

a

property

tax

credit

or

32

exemption

enacted

on

or

after

January

1,

1997,

if

a

state

33

appropriation

made

to

fund

the

credit

or

exemption

is

not

34

sufficient

to

fully

fund

the

credit

or

exemption,

the

political

35

-1-

LSB

1702HV

(2)

91

jm/md

1/

2

H.F.

1050

subdivision

shall

be

required

to

extend

to

the

taxpayer

only

1

that

portion

of

the

credit

or

exemption

estimated

by

the

2

department

of

revenue

to

be

funded

by

the

state

appropriation.

3

The

bill

takes

effect

upon

enactment

and

applies

4

retroactively

to

assessment

years

beginning

on

or

after

January

5

1,

2025.

6

-2-

LSB

1702HV

(2)

91

jm/md

2/

2