Text: HSB222            Text: HSB224


House Study Bill 223

HOUSE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR 1 An Act relating to the assessment and taxation of 2 telecommunications company property and including 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2472YC (2) 85 md/sc PAG LIN 1 1 Section 1. Section 433.4, Code 2013, is amended to read as 1 2 follows: 1 3 433.4 Assessment. 1 4 1. The director of revenue shall on or before October 1 5 31 each year, proceed to find the actual value of the real 1 6 property of these companies in this state used by the companies 1 7 in the transaction of telegraph and telephone business, taking 1 8 into consideration the information obtained from the statements 1 9 required, and any further information the director can obtain, 1 10 using the same as a means for determining the actual cash value 1 11 of the property of these companies within this state. The 1 12 director shall also take into consideration the valuation of 1 13 all property of these companies, including franchises and the 1 14 use of the property in connection with lines outside the state, 1 15 and making these deductions as may be necessary on account of 1 16 extra value of property outside the state as compared with the 1 17 value of property in the state, in order that the actual cash 1 18 value of the real property of the company within this state 1 19 may be ascertained. The assessment shall include all property 1 20 of every kind and character whatsoever, real, personal, or 1 21 mixed, used by the companies in the transaction of telegraph 1 22 and telephone business; and the The property so included in 1 23 the assessment shall not be taxed in any other manner than as 1 24 provided in this chapter. 1 25 2. For assessment years beginning on or after January 1 26 1, 2014, except as specifically provided in this chapter, a 1 27 company's real property shall be subject to assessment and 1 28 taxation under this chapter by the director of revenue in 1 29 the same manner as property assessed and taxed as commercial 1 30 property under chapters 427, 427A, 427B, 428, and 441. 1 31 Sec. 2. Section 441.21, subsection 5, Code 2013, is amended 1 32 to read as follows: 1 33 5. For valuations established as of January 1, 1979, 1 34 commercial property and industrial property, excluding 1 35 properties referred to in section 427A.1, subsection 8, shall 2 1 be assessed as a percentage of the actual value of each class 2 2 of property. The percentage shall be determined for each 2 3 class of property by the director of revenue for the state in 2 4 accordance with the provisions of this section. For valuations 2 5 established as of January 1, 1979, the percentage shall be 2 6 the quotient of the dividend and divisor as defined in this 2 7 section. The dividend for each class of property shall be the 2 8 total actual valuation for each class of property established 2 9 for 1978, plus six percent of the amount so determined. The 2 10 divisor for each class of property shall be the valuation 2 11 for each class of property established for 1978, as reported 2 12 by the assessors on the abstracts of assessment for 1978, 2 13 plus the amount of value added to the total actual value by 2 14 the revaluation of existing properties in 1979 as equalized 2 15 by the director of revenue pursuant to section 441.49. For 2 16 valuations established as of January 1, 1979, property valued 2 17 by the department of revenue pursuant to chapters 428, 433, 2 18 437, and 438 shall be considered as one class of property and 2 19 shall be assessed as a percentage of its actual value. The 2 20 percentage shall be determined by the director of revenue in 2 21 accordance with the provisions of this section. For valuations 2 22 established as of January 1, 1979, the percentage shall be 2 23 the quotient of the dividend and divisor as defined in this 2 24 section. The dividend shall be the total actual valuation 2 25 established for 1978 by the department of revenue, plus ten 2 26 percent of the amount so determined. The divisor for property 2 27 valued by the department of revenue pursuant to chapters 428, 2 28 433, 437, and 438 shall be the valuation established for 1978, 2 29 plus the amount of value added to the total actual value by 2 30 the revaluation of the property by the department of revenue 2 31 as of January 1, 1979. For valuations established as of 2 32 January 1, 1980, commercial property and industrial property, 2 33 excluding properties referred to in section 427A.1, subsection 2 34 8, shall be assessed at a percentage of the actual value of 2 35 each class of property. The percentage shall be determined 3 1 for each class of property by the director of revenue for the 3 2 state in accordance with the provisions of this section. For 3 3 valuations established as of January 1, 1980, the percentage 3 4 shall be the quotient of the dividend and divisor as defined in 3 5 this section. The dividend for each class of property shall 3 6 be the dividend as determined for each class of property for 3 7 valuations established as of January 1, 1979, adjusted by the 3 8 product obtained by multiplying the percentage determined 3 9 for that year by the amount of any additions or deletions to 3 10 actual value, excluding those resulting from the revaluation 3 11 of existing properties, as reported by the assessors on the 3 12 abstracts of assessment for 1979, plus four percent of the 3 13 amount so determined. The divisor for each class of property 3 14 shall be the total actual value of all such property in 1979, 3 15 as equalized by the director of revenue pursuant to section 3 16 441.49, plus the amount of value added to the total actual 3 17 value by the revaluation of existing properties in 1980. The 3 18 director shall utilize information reported on the abstracts of 3 19 assessment submitted pursuant to section 441.45 in determining 3 20 such percentage. For valuations established as of January 1, 3 21 1980, property valued by the department of revenue pursuant 3 22 to chapters 428, 433, 437, and 438 shall be assessed at a 3 23 percentage of its actual value. The percentage shall be 3 24 determined by the director of revenue in accordance with the 3 25 provisions of this section. For valuations established as of 3 26 January 1, 1980, the percentage shall be the quotient of the 3 27 dividend and divisor as defined in this section. The dividend 3 28 shall be the total actual valuation established for 1979 by 3 29 the department of revenue, plus eight percent of the amount so 3 30 determined. The divisor for property valued by the department 3 31 of revenue pursuant to chapters 428, 433, 437, and 438 shall 3 32 be the valuation established for 1979, plus the amount of 3 33 value added to the total actual value by the revaluation of 3 34 the property by the department of revenue as of January 1, 3 35 1980. For valuations established as of January 1, 1981, 4 1 and each year thereafter, the percentage of actual value as 4 2 equalized by the director of revenue as provided in section 4 3 441.49 at which commercial property and industrial property, 4 4 excluding properties referred to in section 427A.1, subsection 4 5 8, shall be assessed shall be calculated in accordance with 4 6 the methods provided herein, except that any references to 4 7 six percent in this subsection shall be four percent. For 4 8 valuations established as of January 1, 1981, and each year 4 9 thereafter, the percentage of actual value at which property 4 10 valued by the department of revenue pursuant to chapters 428, 4 11 433, 437, and 438 shall be assessed shall be calculated in 4 12 accordance with the methods provided herein, except that any 4 13 references to ten percent in this subsection shall be eight 4 14 percent. For valuations established on or after January 1, 4 15 2014, property valued by the department of revenue pursuant to 4 16 chapter 433 shall be assessed at a percentage of its actual 4 17 value. For valuations established for the assessment year 4 18 beginning January 1, 2014, the percentage of actual value at 4 19 which property valued by the department of revenue pursuant 4 20 to chapter 433 shall be assessed shall be eighty percent. 4 21 For valuations established for the assessment year beginning 4 22 January 1, 2015, and each year thereafter, the percentage of 4 23 actual value at which property valued by the department of 4 24 revenue pursuant to chapter 433 shall be assessed shall be 4 25 sixty percent. Beginning with valuations established as of 4 26 January 1, 1979, and each year thereafter, property valued by 4 27 the department of revenue pursuant to chapter 434 shall also be 4 28 assessed at a percentage of its actual value which percentage 4 29 shall be equal to the percentage determined by the director 4 30 of revenue for commercial property, industrial property, or 4 31 property valued by the department of revenue pursuant to 4 32 chapters 428, 433, 437, and 438, whichever is lowest. 4 33 Sec. 3. Section 441.21, subsections 9 and 10, Code 2013, are 4 34 amended to read as follows: 4 35 9. Not later than November 1, 1979, and November 1 of 5 1 each subsequent year, the director shall certify to the 5 2 county auditor of each county the percentages of actual 5 3 value at which residential property, agricultural property, 5 4 commercial property, industrial property, property valued by 5 5 the department of revenue under chapter 433, and property 5 6 valued by the department of revenue pursuant to chapters 428, 5 7 433, 434, 437, and 438 in each assessing jurisdiction in the 5 8 county shall be assessed for taxation. The county auditor 5 9 shall proceed to determine the assessed values of agricultural 5 10 property, residential property, commercial property, industrial 5 11 property, property valued by the department of revenue under 5 12 chapter 433, and property valued by the department of revenue 5 13 pursuant to chapters 428, 433, 434, 437, and 438 by applying 5 14 such percentages to the current actual value of such property, 5 15 as reported to the county auditor by the assessor, and the 5 16 assessed values so determined shall be the taxable values of 5 17 such properties upon which the levy shall be made. 5 18 10. The percentage of actual value computed by the director 5 19 for agricultural property, residential property, commercial 5 20 property, industrial property, property valued by the 5 21 department of revenue under chapter 433, and property valued by 5 22 the department of revenue pursuant to chapters 428, 433, 434, 5 23 437, and 438 and used to determine assessed values of those 5 24 classes of property does not constitute a rule as defined in 5 25 section 17A.2, subsection 11. 5 26 Sec. 4. Section 476.1D, subsection 10, Code 2013, is amended 5 27 by striking the subsection. 5 28 Sec. 5. APPLICABILITY. This Act applies to assessment years 5 29 beginning on or after January 1, 2014. 5 30 EXPLANATION 5 31 This bill relates to the manner in which the property of 5 32 telecommunications companies is assessed and taxed. 5 33 Current Code section 433.4 requires the director of 5 34 revenue to value for property tax purposes all property of 5 35 the telephone and telegraph companies used in the transaction 6 1 of telegraph and telephone business in this state, including 6 2 real, personal, or mixed property. The bill provides that 6 3 for assessment years beginning on or after January 1, 2014, 6 4 only the real property of telegraph and telephone companies is 6 5 subject to valuation and taxation and that such property shall 6 6 be subject to assessment and taxation under Code chapter 433 by 6 7 the director of revenue in the same manner as property assessed 6 8 and taxed as commercial property. 6 9 The bill strikes a provision in Code section 476.1D that 6 10 allowed certain specified long=distance telephone company 6 11 property to be assessed for taxation as commercial property by 6 12 the local assessor. 6 13 The bill also provides that for valuations established on 6 14 or after January 1, 2014, property valued by the department of 6 15 revenue pursuant to Code chapter 433 shall be assessed at a 6 16 percentage of its actual value. For valuations established for 6 17 the assessment year beginning January 1, 2014, the percentage 6 18 of actual value at which property valued by the department of 6 19 revenue pursuant to Code chapter 433 shall be assessed shall be 6 20 80 percent. For valuations established for the assessment year 6 21 beginning January 1, 2015, and subsequent assessment years, 6 22 the percentage of actual value at which property valued by the 6 23 department of revenue pursuant to Code chapter 433 shall be 6 24 assessed shall be 60 percent. 6 25 The bill applies to assessment years beginning on or after 6 26 January 1, 2014. LSB 2472YC (2) 85 md/sc
Text: HSB222            Text: HSB224