| LAWS OF THE 2001 REGULAR SESSION OF THE SEVENTY-NINTH GENERAL ASSEMBLY OF THE STATE OF IOWA |
Section 1. Section 437A.3, subsection 1, unnumbered paragraph 1, Code 2001, is amended to read as follows:
"Assessed value" means the base year assessed value, as adjusted by section 437A.19, subsection 2. "Base year assessed value", for a taxpayer other than an electric company, natural gas company, or electric cooperative, means the value attributable to property identified in section 427A.1, subsection 1, paragraph "h", certified by the department of revenue and finance to the county auditors for the assessment date of January 1, 1997, and the value attributable to property identified in section 427A.1 and section 427B.17, subsection 5, as certified by the local assessors to the county auditors for the assessment date of January 1, 1997, provided, that for a taxpayer subject to section 437A.17A, such value shall be the value certified by the department of revenue and finance and local assessors to the county auditors for the assessment date of January 1, 1998. However, "base year assessed value", for purposes of property of a taxpayer that is a municipal utility, if the property is not a major addition, and the property was initially assessed to the taxpayer as of January 1, 1998, and is not located in a county where the taxpayer had property that was assessed for purposes of this chapter as of January 1, 1997, means the value attributable to such property for the assessment date of January 1, 1998.
Sec. 2. Section 437A.3, subsection 17, paragraph d, Code 2001, is amended to read as follows:
d. Any operating
property
described in section 437A.16 in this state by a person not previously subject
to taxation under this chapter.
Sec. 3. Section 437A.6, Code 2001, is amended by adding the following new subsections:
NEW SUBSECTION. 4. In lieu of the replacement generation tax imposed in subsection 1, a replacement generation tax of one thousand eight hundred forty-seven ten-thousandths of a cent per kilowatt-hour of electricity generated within this state during the tax year is imposed on every hydroelectric generating power plant with a generating capacity of one hundred megawatts or greater.
NEW SUBSECTION. 5. In lieu of the replacement generation tax imposed in subsection 1, a replacement generation tax of one thousand ninety-nine ten-thousandths of a cent per kilowatt-hour of electricity generated within this state during the tax year is imposed on every electric company which owns a joint interest in an electric power generating plant in this state and which has a joint interest in less than five pole miles of transmission lines in this state.
Sec. 4. Section 437A.7, subsection 2, paragraph c, Code 2001, is amended to read as follows:
c. Any electric cooperative which owns, leases, or owns and leases in total
more than fifty pole miles and
less than seven hundred fifty pole miles of transmission lines in this state. Chapter 437 shall apply to such
electric cooperatives.
Sec. 5. Section 437A.8, subsection 1, unnumbered paragraph 1, Code 2001, is amended to read as follows:
Each taxpayer, on or before February
28
March 31 following a tax year, shall file with
the director a return including, but not limited to, the following information:
Sec. 6. Section 437A.8, subsection 2, unnumbered paragraph 1, Code 2001, is amended to read as follows:
Each taxpayer subject to a municipal transfer replacement tax, on or before
February 28
March 31 following a tax year, shall file with the chief financial officer of each city
located within an electric or natural gas competitive service area served by a municipal utility as
of January 1, 1999, a return including, but not limited to, the following information:
Sec. 7. Section 437A.8, subsection 4, unnumbered paragraphs 2 and 3, Code 2001, are amended to read as follows:
If a distribution electric cooperative member or a municipal utility purchasing
member subject to section 437A.15, subsection 3, paragraph "b", does not make timely payment
of the correct amount of replacement tax to the generation and transmission electric
cooperative and the generation and transmission electric cooperative so notifies the director and
the appropriate county treasurer within fifteen days after August 1, and timely remits to
the county treasurer the amounts of replacement tax received by the generation and
transmission electric cooperative in accordance with section 437A.15, subsection 3, paragraph
"b", the generation and transmission electric cooperative shall not be liable for the unpaid
replacement tax due from the distribution electric cooperative member or municipal
utility purchasing member. The generation and transmission electric cooperative shall also not
be liable for a special utility property tax levy, if any, and shall not be entitled to a tax credit,
if any, attributable to the unpaid replacement tax. The county treasurer and the director
shall enforce payment of the replacement tax against the appropriate distribution electric
cooperative member or municipal utility purchasing member pursuant to sections 437A.9
through 437A.13. The county treasurer shall enforce payment of the special utility property tax
levy, if any, against the appropriate distribution electric cooperative member or municipal
utility purchasing member.
If a generation and transmission electric cooperative receives some, but not all, of
the required payment from a distribution electric cooperative member or a municipal
utility purchasing member, the generation and transmission electric cooperative shall notify the director in writing within
fifteen
ten days after
August 1
September 10. The director
shall then notify the generation and transmission electric cooperative
in writing within five days after delivery of notice to the
director of the paid amount to be remitted to the appropriate county treasurer
and shall also notify the county treasurer. The generation and transmission electric cooperative shall remit
the amount determined by the director to the appropriate county treasurer by September
30. If the generation and transmission electric cooperative timely notifies the director and timely remits to the county treasurer
the amounts of replacement tax, as determined by the director, the generation and transmission electric
cooperative shall not be liable for that unpaid replacement tax due from the distribution electric cooperative member
or municipal utility purchasing member. The generation and transmission electric cooperative shall also not
be liable for a special utility property tax levy, if any, and shall not be entitled to a tax credit, if any, attributable
to the unpaid replacement tax. The county treasurer and the director shall enforce payment of the replacement
tax against the appropriate distribution electric cooperative member or municipal utility purchasing member
pursuant to sections 437A.9 through 437A.13. The county treasurer shall enforce payment of the special
utility property tax levy, if any, against the appropriate distribution electric cooperative member or municipal
utility purchasing member. For purposes of this paragraph:
a. Written notice to the director must be either delivered to the director by electronic means, United States postal service, or a common carrier, by ordinary, certified, or registered mail directed to the attention of the director, be personally delivered to the director, or be served on the director by personal service during business hours. If the notice is mailed, a notice is considered delivered on the date of the postmark. If a postmark date is not present on the mailed article, the date of receipt of notice shall be considered the date of the mailing. A notice is considered delivered on the date personal service or personal delivery to the office of the director is made.
b. Written notice to a generation and transmission electric cooperative must be delivered to the cooperative by electronic means, United States postal service, or a common carrier, by ordinary, certified, or registered mail, directed to the attention of the manager of the cooperative, be personally delivered to the manager of the cooperative, or be served on the manager of the cooperative by personal service during business hours. For the purpose of mailing, a notice is considered delivered on the date of the postmark. If a postmark date is not present on the mailed article, the date of receipt of notice shall be considered the date of the mailing. A notice is considered delivered on the date personal service or personal delivery to the office of the manager of the cooperative is made.
Sec. 8. Section 437A.8, subsection 6, Code 2001, is amended to read as follows:
6. Notwithstanding subsections 1 through 5, a taxpayer shall not be required to file a return otherwise required by this section or remit any replacement tax for any tax year in which the taxpayer's replacement tax liability before credits is three hundred dollars or less, provided that all electric companies, electric cooperatives, municipal utilities, and natural gas companies shall file a return, regardless of the taxpayer's replacement tax liability.
Sec. 9. Section 437A.15, subsection 3, Code 2001, is amended to read as follows:
3. a. All replacement taxes owed by a taxpayer shall be allocated among the local taxing districts in which such taxpayer's property is located in accordance with a general allocation formula determined by the department of management on the basis of general property tax equivalents. General property tax equivalents shall be determined by applying the levy rates reported by each local taxing district to the department of management on or before June 30 following a tax year to the assessed value of taxpayer property allocated to each such local taxing district as adjusted and reported to the department of management in such tax year by the director pursuant to section 437A.19, subsection 2. The general allocation formula for a tax year shall allocate to each local taxing district that portion of the replacement taxes owed by each taxpayer which bears the same ratio as such taxpayer's general property tax equivalents for each local taxing district bears to such taxpayer's total general property tax equivalents for all local taxing districts in Iowa.
b. Notwithstanding other provisions of this section, if excess property tax liability has been
assigned pursuant to section 437A.4, subsection 3, paragraph "c", subparagraph (4), and has not been removed,
the allocation of electric delivery replacement tax attributable to the excess property tax liability shall be made by
the director and the department of management so as to allocate the electric delivery replacement tax attributable
to the excess property tax liability among those local taxing districts in which the property associated with
the excess property tax liability is located. In order to ensure that the electric delivery replacement tax
attributable to the excess property tax liability is paid to the appropriate county treasurer for disposition to the local
taxing districts, each distribution electric cooperative member and each municipal utility purchasing member subject
to section 437A.4, subsection 3, paragraph "c", subparagraph (4), shall pay to the appropriate generation
and transmission electric cooperative the electric delivery replacement tax attributable to the excess property
tax liability by August 1
September
10. The amount of electric delivery replacement tax attributable to the
excess property tax liability shall equal that percentage of total electric delivery replacement tax liability that the
excess property tax liability bears to the total property tax liability contained in the electric delivery tax component.
The generation and transmission electric cooperative shall pay the electric delivery replacement tax attributable
to the excess property tax liability to the appropriate county treasurer.
c. If paragraph "b" is applicable, on or before
June 1
August 1, the director shall notify each
distribution electric cooperative member, each municipal utility purchasing member, and each generation and
transmission electric cooperative of the amount of electric delivery replacement tax to pay to the generation and
transmission electric cooperative. On or before
June 1
August 1, the director shall notify the generation and
transmission electric cooperative of the amount of replacement tax liability attributable to the excess property tax liability
that is payable to each county treasurer. The director shall determine the amount of any special utility property
tax levy or tax credit attributable to the excess property tax liability which shall be reflected in the amount
required to be paid by each distribution electric cooperative member and each municipal utility purchasing member to
the generation and transmission electric cooperative.
d. If, during the tax year, a taxpayer transferred operating property or an interest in operating property to another taxpayer, the transferee taxpayer's replacement tax associated with that property shall be allocated, for the tax year in which the transfer occurred, under this section in accordance with the general allocation formula on the basis of the general property tax equivalents of the transferor taxpayer.
e. Notwithstanding the provisions of this section, if during the tax year a person who was not a taxpayer during the prior tax year acquires a new major addition, as defined in section 437A.3, subsection 17, paragraph "d", the replacement tax associated with that major addition shall be allocated, for that tax year, under this section in accordance with the general allocating formula on the basis of the general property tax equivalents established under section 437A.15, except that the levy rates established and reported to the department of management on or before June 30 following the tax year in which the major addition was acquired shall be applied to the prorated assessed value of the major addition and provided that section 437A.19, subsection 2, paragraph "b", subparagraph (2), is in any event applicable. For purposes of this paragraph, "prorated assessed value of the major addition" means the assessed value of the major addition as of January 1 of the year following the tax year in which the major addition was acquired multiplied by the percentage derived by dividing the number of months that the major addition existed during the tax year by twelve, counting any portion of a month as a full month.
Sec. 10. Section 437A.19, subsection 2, paragraph b, subparagraph (2), Code 2001, is amended to read as follows:
(2) If, during the preceding calendar year, a taxpayer transferred an electric power generating plant or an interest in an electric power generating plant to a taxpayer who owned no other taxpayer property in this state as of the end of such preceding calendar year, in lieu of the adjustment provided in subparagraph (1), the director shall allocate the transferee taxpayer's change in book value of the statewide amount during such preceding calendar year, if any, among local taxing districts in proportion to the allocation of the transferor's assessed value among local taxing districts as of the end of such preceding calendar year.
Sec. 11. Section 437A.21, subsection 1, unnumbered paragraph 1, Code 2001, is amended to read as follows:
Each electric company, natural gas company, electric cooperative, municipal utility,
and other person whose property is subject to the statewide property tax shall file with
the director a return, on or before February
28
March 31 following the assessment year,
including, but not limited to, the following information:
Sec. 12. Section 437A.24, Code 2001, is amended to read as follows:
437A.24 RECORDS.
Each electric company, natural gas company, electric cooperative, municipal utility,
and other person who is subject to the replacement tax or the statewide property tax shall
maintain records associated with the replacement tax and the assessed value of property
subject to the statewide property tax for a period of
ten
five years following the later of the
original due date for filing a return pursuant to sections 437A.8 and 437A.21 in which such taxes
are reported, or the date on which either such return is filed. Such records shall include
those associated with any additions or dispositions of property, and the allocation of such
property among local taxing districts.
Sec. 13. APPLICABILITY.
1. Section 1 of this Act is applicable to tax years commencing on or after January 1, 2001.
2. Section 3 of this Act is applicable to tax years commencing on or after January 1, 2001.
3. Section 4 of this Act is applicable to tax years and assessment years commencing on or after January 1, 2001.
4. Sections 5 and 6 of this Act are applicable for returns due for tax years commencing on or after January 1, 2001.
5. Section 11 of this Act is applicable for returns due for assessment years commencing on or after January 1, 2001.
Approved May 16, 2001
Updated: 29-Oct-2001 02:15 PM
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