1. a. A taxpayer whose property is subject to the statewide property tax shall report to
the director by July 1, 2013, and by May 1 of each subsequent tax year, on forms prescribed
by the director, the book value, as of the beginning and end of the preceding calendar year,
of all of the following:
(1)The local amount of any major addition by local taxing district.
(2)The statewide amount of any major addition without notation of location.
(3)Any building in Iowa at acquisition cost of more than ten million dollars that was
originally placed in service by the taxpayer prior to January 1, 2012, and that was transferred
or disposed of in the preceding calendar year, listed by local taxing district.
(4)All other taxpayer property without notation of location.
(5)The local amount of any ma
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1. a. A taxpayer whose property is subject to the statewide property tax shall report to
the director by July 1, 2013, and by May 1 of each subsequent tax year, on forms prescribed
by the director, the book value, as of the beginning and end of the preceding calendar year,
of all of the following:
(1) The local amount of any major addition by local taxing district.
(2) The statewide amount of any major addition without notation of location.
(3) Any building in Iowa at acquisition cost of more than ten million dollars that was
originally placed in service by the taxpayer prior to January 1, 2012, and that was transferred
or disposed of in the preceding calendar year, listed by local taxing district.
(4) All other taxpayer property without notation of location.
(5) The local amount of any major addition eligible for the urban revitalization exemption
provided for in chapter 404, by situs.
(6) All other transferred taxpayer property, in addition to any transferred property
reported under subparagraph (3), listed by local taxing district.
(7) Any water utility operating property at acquisition cost of more than one million
dollars that was transferred or disposed of in the preceding calendar year, listed by local
taxing district.
b. For purposes of this section:
(1) “Book value” means acquisition cost less accumulated depreciation determined under
generally accepted accounting principles.
(2) “Taxpayer property” means property described in section 437B.12.
(3) “To dispose of” means to sell, abandon, decommission, or retire an asset.
(4) “Transfer” means a transaction which results in a change of ownership of taxpayer
property and includes a capital lease transaction.
c. For purposes of this subsection, “taxpayer” includes a person who would have been a
taxpayer in calendar year 2012 had the provisions of this chapter been in effect for the 2012
assessment year.
d. If a taxpayer owns or leases pursuant to a capital lease less than the entire interest in a
11 TAXES ON RATE-REGULATED WATER UTILITIES, §437B.15
major addition, the local amount and statewide amount, if any, of such major addition shall
be apportioned to the taxpayer on the basis of its percentage interest in such major addition.
2. a. BeginningJanuary1, 2013, theassessedvalueoftaxpayerpropertyshallbeadjusted
annually as provided in this section. The director, with respect to each taxpayer, shall do all
of the following:
(1) Adjust the assessed value of taxpayer property in each local taxing district by the
change in book value during the preceding calendar year of the local amount of any major
addition reported within such local taxing district.
(2) Adjust the assessed value of taxpayer property in each local taxing district by
allocating the change in book value during the preceding calendar year of the statewide
amount and all other taxpayer property described in subsection 1, paragraph “a”,
subparagraph (5), to the assessed value of all taxpayer property in the state pro rata
according to its preadjustment value.
(3) In the case of taxpayer property described in subsection 1, paragraph “a”,
subparagraphs (3), (4), and (7), decrease the assessed value of taxpayer property in each
local taxing district by the assessed value reported within such local taxing district.
(4) In the event of a merger or consolidation of two or more taxpayers, to determine
the assessed value of the surviving taxpayer, combine the assessed values of such taxpayers
immediately prior to the merger or consolidation.
(5) Intheeventanytaxpayerpropertyiseligiblefortheurbanrevitalizationtaxexemption
described in chapter 404, adjust the assessed value of taxpayer property within each affected
local taxing district to reflect such exemption.
(6) In the event the assessed value of taxpayer property is adjusted as a result of taxpayer
appeals, reduce the assessed value of taxpayer property in each local taxing district to reflect
such adjustment. The adjustment shall be allocated in proportion to the allocation of the
taxpayer’s assessed value among the local taxing districts determined without regard to this
adjustment. An adjustment to the assessed value of taxpayer property shall be made as of
January 1 of the year following the date on which the adjustment is finally determined.
b. In no event shall the adjustments set forth in this subsection reduce the assessed value
of taxpayer property in any local taxing district below zero.
c. The director, on or before October 31 of each assessment year, shall report to the
department of management and to the auditor of each county the adjusted assessed value
of taxpayer property as of January 1 of such assessment year for each local taxing district.
For purposes of this subsection, the assessed value of taxpayer property in each local taxing
district subject to adjustment under this section by the director means the assessed value of
such property as of the preceding January 1 as determined and allocated among the local
taxing districts by the director.
d. Nothing in this chapter shall be interpreted to authorize local taxing authorities to
exclude from the calculation of levy rates the taxable value of taxpayer property reported to
county auditors pursuant to this subsection.
e. In addition to reporting the assessed values as described in this subsection, the
director, on or before October 31 of each assessment year, shall also report to the department
of management and to the auditor of each county the taxable value of taxpayer property
as of January 1 of such assessment year for each local taxing district. For purposes of
this chapter, “taxable value” means the value for all property subject to the replacement
tax annually determined by the director, by dividing the estimated annual replacement tax
liability for that property by the current fiscal year’s consolidated taxing district rate for the
taxing district where that property is located, then multiplying the quotient by one thousand.
A taxpayer who paid more than five hundred thousand dollars in replacement tax in the
previous tax year or who believes the taxpayer’s replacement tax liability will vary more
than ten percent from the previous tax year shall report to the director by October 1 of the
current calendar year, on forms prescribed by the director, the estimated replacement tax
liability that will be attributable to all of the taxpayer’s property subject to replacement tax
for the current tax year. The department shall utilize the estimated replacement tax liability
as reported by the taxpayer or the taxpayer’s prior year’s replacement tax amounts to
estimate the current tax year’s taxable value for that property. Furthermore, a taxpayer who
§437B.15, TAXES ON RATE-REGULATED WATER UTILITIES 12
has a new major addition of operating property which is put into service for the first time in
the current calendar year shall report to the director by October 1 of the current calendar
year, or at the time the major addition is put into service, whichever time is later, on forms
prescribed by the director, the cost of the major addition and, if not previously reported, shall
report the estimated replacement taxes which that asset will generate in the current calendar
year. For the purposes of computing the taxable value of property in a taxing district, the
taxing district’s share of the estimated replacement tax liability shall be the taxing district’s
percentage share of the assessed value allocated by property tax equivalent multiplied by
the total estimated replacement tax. The assessed value allocated by property tax equivalent
shall be determined by dividing the taxpayer’s current year assessed valuation in a taxing
district by one thousand, and then multiplying by the prior year’s consolidated tax rate.