As used in this chapter, unless the context otherwise requires:
1.“Centrally assessed property tax” means property tax imposed with respect to the value
of property determined by the director pursuant to sections 428.24 through 428.26, 428.28,
and 428.29, Code 2013, and allocated to water service.
2.“Consumer” means an end user of water used or consumed within the service area
of a water utility. “Consumer” includes any master-metered facility even though the water
delivered to such facility may ultimately be used by another person. A person to whom
water is delivered by a master-metered facility is not a consumer. A “master-metered facility”
means any multi-occupancy premises where units are separately rented or owned and where
individual metering is impractical, where the facility is d
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As used in this chapter, unless the context otherwise requires:
1. “Centrally assessed property tax” means property tax imposed with respect to the value
of property determined by the director pursuant to sections 428.24 through 428.26, 428.28,
and 428.29, Code 2013, and allocated to water service.
2. “Consumer” means an end user of water used or consumed within the service area
of a water utility. “Consumer” includes any master-metered facility even though the water
delivered to such facility may ultimately be used by another person. A person to whom
water is delivered by a master-metered facility is not a consumer. A “master-metered facility”
means any multi-occupancy premises where units are separately rented or owned and where
individual metering is impractical, where the facility is designated for elderly or handicapped
persons and utility costs constitute part of the operating cost and are not apportioned to
individual units, or where submetering or resale of service was permitted prior to 1966.
3. “Delivery” means the physical transfer of water, excluding nonrevenue water, to a
consumer for sale. Physical transfer to a consumer occurs when transportation of water
ends and such water becomes available for use or consumption by a consumer.
4. “Director” means the director of revenue.
5. “Lease” means a contract between a lessor and lessee pursuant to which the lessee
obtains a present possessory interest in tangible property without obtaining legal title in such
property. A contract to deliver water using operating property within this state is not a lease.
“Capitallease”meansaleaseclassifiedasacapitalleaseundergenerallyacceptedaccounting
principles.
6. “Local taxing authority” means a city, county, community college, school district, or
other taxing authority located in this state and authorized to certify a levy on property located
within such authority for the payment of bonds and interest or other obligations of such
authority.
§437B.2, TAXES ON RATE-REGULATED WATER UTILITIES 2
7. “Local taxing district” means a geographic area with a common consolidated property
tax rate.
8. a. “Majoraddition”meansanyacquisitiononorafterJanuary1, 2012, byataxpayer, by
transferofownership,self-construction,orcapitalleaseofanyinterestinanyofthefollowing:
(1) A building in this state where the acquisition cost of all interests acquired exceeds ten
million dollars.
(2) Awatertreatmentplantwheretheacquisitioncostofallinterestsacquiredexceedsten
million dollars. For purposes of this subparagraph, “water treatment plant” means buildings
and equipment used in that portion of the potable water supply system which in some way
alters the physical, chemical, or bacteriological quality of the water.
(3) Water utility operating property within a local taxing district where the acquisition
cost of all interests acquired exceeds one million dollars.
(4) Any water utility property in this state acquired by a person not previously subject to
taxation under this chapter pursuant to section 437B.12.
b. For purposes of this chapter, the acquisition cost of an asset acquired by capital lease
is its capitalized value determined under generally accepted accounting principles.
9. “Nonrevenue water” means the difference between the total number of gallons of water
carried through the water utility’s distribution system and the number of gallons of water
delivered to consumers using the water utility’s distribution system.
10. “Operating property” means all property owned by or leased to a water utility, not
otherwise taxed separately, which is necessary to and without which the water utility could
not perform the activities of a water utility.
11. “Replacement tax” means the excise tax imposed on the delivery of water under
section 437B.3.
12. “Service area” means the geographical area within this state to which the water utility
delivers water and related services. A water utility’s service area shall be that area described
in the water utility’s tariff filed with the utilities commission.
13. “Tax year” means a calendar year beginning January 1 and ending December 31.
14. “Taxable value” means as defined in section 437B.15, subsection 2, paragraph “e”.
15. “Taxpayer” means a water utility or other person subject to the replacement tax
imposed under section 437B.3.
16. “Utilities commission” means the utilities commission created in section 474.1.
17. “Water utility” or “rate-regulated water utility” means a person engaged primarily
in the production, delivery, service, or sale of water in a service area, whether formed or
organized under the laws of this state or elsewhere, and subject to the rate and service
regulation of the utilities commission pursuant to chapter 476. “Water utility” does not
include a cooperative, municipal utility, or other entity engaged primarily in such activities
that is not under the jurisdiction of the utilities commission.