Bill Text: IA HSB223 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill relating to the assessment and taxation of telecommunications company property and including applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2013-03-19 - Ways and Means: Byrnes Chair,Moore, and Thomas. [HSB223 Detail]
Download: Iowa-2013-HSB223-Introduced.html
House
Study
Bill
223
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
relating
to
the
assessment
and
taxation
of
1
telecommunications
company
property
and
including
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2472YC
(2)
85
md/sc
H.F.
_____
Section
1.
Section
433.4,
Code
2013,
is
amended
to
read
as
1
follows:
2
433.4
Assessment.
3
1.
The
director
of
revenue
shall
on
or
before
October
4
31
each
year,
proceed
to
find
the
actual
value
of
the
real
5
property
of
these
companies
in
this
state
used
by
the
companies
6
in
the
transaction
of
telegraph
and
telephone
business
,
taking
7
into
consideration
the
information
obtained
from
the
statements
8
required,
and
any
further
information
the
director
can
obtain,
9
using
the
same
as
a
means
for
determining
the
actual
cash
value
10
of
the
property
of
these
companies
within
this
state.
The
11
director
shall
also
take
into
consideration
the
valuation
of
12
all
property
of
these
companies,
including
franchises
and
the
13
use
of
the
property
in
connection
with
lines
outside
the
state,
14
and
making
these
deductions
as
may
be
necessary
on
account
of
15
extra
value
of
property
outside
the
state
as
compared
with
the
16
value
of
property
in
the
state,
in
order
that
the
actual
cash
17
value
of
the
real
property
of
the
company
within
this
state
18
may
be
ascertained.
The
assessment
shall
include
all
property
19
of
every
kind
and
character
whatsoever,
real,
personal,
or
20
mixed,
used
by
the
companies
in
the
transaction
of
telegraph
21
and
telephone
business;
and
the
The
property
so
included
in
22
the
assessment
shall
not
be
taxed
in
any
other
manner
than
as
23
provided
in
this
chapter
.
24
2.
For
assessment
years
beginning
on
or
after
January
25
1,
2014,
except
as
specifically
provided
in
this
chapter,
a
26
company’s
real
property
shall
be
subject
to
assessment
and
27
taxation
under
this
chapter
by
the
director
of
revenue
in
28
the
same
manner
as
property
assessed
and
taxed
as
commercial
29
property
under
chapters
427,
427A,
427B,
428,
and
441.
30
Sec.
2.
Section
441.21,
subsection
5,
Code
2013,
is
amended
31
to
read
as
follows:
32
5.
For
valuations
established
as
of
January
1,
1979,
33
commercial
property
and
industrial
property,
excluding
34
properties
referred
to
in
section
427A.1,
subsection
8
,
shall
35
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2472YC
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85
md/sc
1/
6
H.F.
_____
be
assessed
as
a
percentage
of
the
actual
value
of
each
class
1
of
property.
The
percentage
shall
be
determined
for
each
2
class
of
property
by
the
director
of
revenue
for
the
state
in
3
accordance
with
the
provisions
of
this
section
.
For
valuations
4
established
as
of
January
1,
1979,
the
percentage
shall
be
5
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
6
section
.
The
dividend
for
each
class
of
property
shall
be
the
7
total
actual
valuation
for
each
class
of
property
established
8
for
1978,
plus
six
percent
of
the
amount
so
determined.
The
9
divisor
for
each
class
of
property
shall
be
the
valuation
10
for
each
class
of
property
established
for
1978,
as
reported
11
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
12
plus
the
amount
of
value
added
to
the
total
actual
value
by
13
the
revaluation
of
existing
properties
in
1979
as
equalized
14
by
the
director
of
revenue
pursuant
to
section
441.49
.
For
15
valuations
established
as
of
January
1,
1979,
property
valued
16
by
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
17
437
,
and
438
shall
be
considered
as
one
class
of
property
and
18
shall
be
assessed
as
a
percentage
of
its
actual
value.
The
19
percentage
shall
be
determined
by
the
director
of
revenue
in
20
accordance
with
the
provisions
of
this
section
.
For
valuations
21
established
as
of
January
1,
1979,
the
percentage
shall
be
22
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
23
section
.
The
dividend
shall
be
the
total
actual
valuation
24
established
for
1978
by
the
department
of
revenue,
plus
ten
25
percent
of
the
amount
so
determined.
The
divisor
for
property
26
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
27
433
,
437
,
and
438
shall
be
the
valuation
established
for
1978,
28
plus
the
amount
of
value
added
to
the
total
actual
value
by
29
the
revaluation
of
the
property
by
the
department
of
revenue
30
as
of
January
1,
1979.
For
valuations
established
as
of
31
January
1,
1980,
commercial
property
and
industrial
property,
32
excluding
properties
referred
to
in
section
427A.1,
subsection
33
8
,
shall
be
assessed
at
a
percentage
of
the
actual
value
of
34
each
class
of
property.
The
percentage
shall
be
determined
35
-2-
LSB
2472YC
(2)
85
md/sc
2/
6
H.F.
_____
for
each
class
of
property
by
the
director
of
revenue
for
the
1
state
in
accordance
with
the
provisions
of
this
section
.
For
2
valuations
established
as
of
January
1,
1980,
the
percentage
3
shall
be
the
quotient
of
the
dividend
and
divisor
as
defined
in
4
this
section
.
The
dividend
for
each
class
of
property
shall
5
be
the
dividend
as
determined
for
each
class
of
property
for
6
valuations
established
as
of
January
1,
1979,
adjusted
by
the
7
product
obtained
by
multiplying
the
percentage
determined
8
for
that
year
by
the
amount
of
any
additions
or
deletions
to
9
actual
value,
excluding
those
resulting
from
the
revaluation
10
of
existing
properties,
as
reported
by
the
assessors
on
the
11
abstracts
of
assessment
for
1979,
plus
four
percent
of
the
12
amount
so
determined.
The
divisor
for
each
class
of
property
13
shall
be
the
total
actual
value
of
all
such
property
in
1979,
14
as
equalized
by
the
director
of
revenue
pursuant
to
section
15
441.49
,
plus
the
amount
of
value
added
to
the
total
actual
16
value
by
the
revaluation
of
existing
properties
in
1980.
The
17
director
shall
utilize
information
reported
on
the
abstracts
of
18
assessment
submitted
pursuant
to
section
441.45
in
determining
19
such
percentage.
For
valuations
established
as
of
January
1,
20
1980,
property
valued
by
the
department
of
revenue
pursuant
21
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
at
a
22
percentage
of
its
actual
value.
The
percentage
shall
be
23
determined
by
the
director
of
revenue
in
accordance
with
the
24
provisions
of
this
section
.
For
valuations
established
as
of
25
January
1,
1980,
the
percentage
shall
be
the
quotient
of
the
26
dividend
and
divisor
as
defined
in
this
section
.
The
dividend
27
shall
be
the
total
actual
valuation
established
for
1979
by
28
the
department
of
revenue,
plus
eight
percent
of
the
amount
so
29
determined.
The
divisor
for
property
valued
by
the
department
30
of
revenue
pursuant
to
chapters
428
,
433
,
437
,
and
438
shall
31
be
the
valuation
established
for
1979,
plus
the
amount
of
32
value
added
to
the
total
actual
value
by
the
revaluation
of
33
the
property
by
the
department
of
revenue
as
of
January
1,
34
1980.
For
valuations
established
as
of
January
1,
1981,
35
-3-
LSB
2472YC
(2)
85
md/sc
3/
6
H.F.
_____
and
each
year
thereafter,
the
percentage
of
actual
value
as
1
equalized
by
the
director
of
revenue
as
provided
in
section
2
441.49
at
which
commercial
property
and
industrial
property,
3
excluding
properties
referred
to
in
section
427A.1,
subsection
4
8
,
shall
be
assessed
shall
be
calculated
in
accordance
with
5
the
methods
provided
herein,
except
that
any
references
to
6
six
percent
in
this
subsection
shall
be
four
percent.
For
7
valuations
established
as
of
January
1,
1981,
and
each
year
8
thereafter,
the
percentage
of
actual
value
at
which
property
9
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
10
433
,
437
,
and
438
shall
be
assessed
shall
be
calculated
in
11
accordance
with
the
methods
provided
herein,
except
that
any
12
references
to
ten
percent
in
this
subsection
shall
be
eight
13
percent.
For
valuations
established
on
or
after
January
1,
14
2014,
property
valued
by
the
department
of
revenue
pursuant
to
15
chapter
433
shall
be
assessed
at
a
percentage
of
its
actual
16
value.
For
valuations
established
for
the
assessment
year
17
beginning
January
1,
2014,
the
percentage
of
actual
value
at
18
which
property
valued
by
the
department
of
revenue
pursuant
19
to
chapter
433
shall
be
assessed
shall
be
eighty
percent.
20
For
valuations
established
for
the
assessment
year
beginning
21
January
1,
2015,
and
each
year
thereafter,
the
percentage
of
22
actual
value
at
which
property
valued
by
the
department
of
23
revenue
pursuant
to
chapter
433
shall
be
assessed
shall
be
24
sixty
percent.
Beginning
with
valuations
established
as
of
25
January
1,
1979,
and
each
year
thereafter,
property
valued
by
26
the
department
of
revenue
pursuant
to
chapter
434
shall
also
be
27
assessed
at
a
percentage
of
its
actual
value
which
percentage
28
shall
be
equal
to
the
percentage
determined
by
the
director
29
of
revenue
for
commercial
property,
industrial
property,
or
30
property
valued
by
the
department
of
revenue
pursuant
to
31
chapters
428
,
433
,
437
,
and
438
,
whichever
is
lowest.
32
Sec.
3.
Section
441.21,
subsections
9
and
10,
Code
2013,
are
33
amended
to
read
as
follows:
34
9.
Not
later
than
November
1,
1979,
and
November
1
of
35
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6
H.F.
_____
each
subsequent
year,
the
director
shall
certify
to
the
1
county
auditor
of
each
county
the
percentages
of
actual
2
value
at
which
residential
property,
agricultural
property,
3
commercial
property,
industrial
property,
property
valued
by
4
the
department
of
revenue
under
chapter
433,
and
property
5
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
6
433
,
434
,
437
,
and
438
in
each
assessing
jurisdiction
in
the
7
county
shall
be
assessed
for
taxation.
The
county
auditor
8
shall
proceed
to
determine
the
assessed
values
of
agricultural
9
property,
residential
property,
commercial
property,
industrial
10
property,
property
valued
by
the
department
of
revenue
under
11
chapter
433,
and
property
valued
by
the
department
of
revenue
12
pursuant
to
chapters
428
,
433
,
434
,
437
,
and
438
by
applying
13
such
percentages
to
the
current
actual
value
of
such
property,
14
as
reported
to
the
county
auditor
by
the
assessor,
and
the
15
assessed
values
so
determined
shall
be
the
taxable
values
of
16
such
properties
upon
which
the
levy
shall
be
made.
17
10.
The
percentage
of
actual
value
computed
by
the
director
18
for
agricultural
property,
residential
property,
commercial
19
property,
industrial
property
,
property
valued
by
the
20
department
of
revenue
under
chapter
433,
and
property
valued
by
21
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
434
,
22
437
,
and
438
and
used
to
determine
assessed
values
of
those
23
classes
of
property
does
not
constitute
a
rule
as
defined
in
24
section
17A.2,
subsection
11
.
25
Sec.
4.
Section
476.1D,
subsection
10,
Code
2013,
is
amended
26
by
striking
the
subsection.
27
Sec.
5.
APPLICABILITY.
This
Act
applies
to
assessment
years
28
beginning
on
or
after
January
1,
2014.
29
EXPLANATION
30
This
bill
relates
to
the
manner
in
which
the
property
of
31
telecommunications
companies
is
assessed
and
taxed.
32
Current
Code
section
433.4
requires
the
director
of
33
revenue
to
value
for
property
tax
purposes
all
property
of
34
the
telephone
and
telegraph
companies
used
in
the
transaction
35
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LSB
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85
md/sc
5/
6
H.F.
_____
of
telegraph
and
telephone
business
in
this
state,
including
1
real,
personal,
or
mixed
property.
The
bill
provides
that
2
for
assessment
years
beginning
on
or
after
January
1,
2014,
3
only
the
real
property
of
telegraph
and
telephone
companies
is
4
subject
to
valuation
and
taxation
and
that
such
property
shall
5
be
subject
to
assessment
and
taxation
under
Code
chapter
433
by
6
the
director
of
revenue
in
the
same
manner
as
property
assessed
7
and
taxed
as
commercial
property.
8
The
bill
strikes
a
provision
in
Code
section
476.1D
that
9
allowed
certain
specified
long-distance
telephone
company
10
property
to
be
assessed
for
taxation
as
commercial
property
by
11
the
local
assessor.
12
The
bill
also
provides
that
for
valuations
established
on
13
or
after
January
1,
2014,
property
valued
by
the
department
of
14
revenue
pursuant
to
Code
chapter
433
shall
be
assessed
at
a
15
percentage
of
its
actual
value.
For
valuations
established
for
16
the
assessment
year
beginning
January
1,
2014,
the
percentage
17
of
actual
value
at
which
property
valued
by
the
department
of
18
revenue
pursuant
to
Code
chapter
433
shall
be
assessed
shall
be
19
80
percent.
For
valuations
established
for
the
assessment
year
20
beginning
January
1,
2015,
and
subsequent
assessment
years,
21
the
percentage
of
actual
value
at
which
property
valued
by
the
22
department
of
revenue
pursuant
to
Code
chapter
433
shall
be
23
assessed
shall
be
60
percent.
24
The
bill
applies
to
assessment
years
beginning
on
or
after
25
January
1,
2014.
26
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