Utilities - Property Tax Replacement
and Statewide Property Tax

BACKGROUND

Senate File 2416 Utilities – Property Tax Replacement and Statewide Property Tax, was passed by the General Assembly and signed by the Governor during the 1998 session. The bill replaces the property taxes paid by electric and natural gas utilities on their property with excise taxes associated with electricity and natural gas. The bill also provides for a special utility property tax levy or tax credit, and a statewide property tax on property associated with electricity and natural gas.

TASK FORCE

The bill required the Department of Management, in consultation with the Department of Revenue, to initiate and coordinate the establishment of a task force. It was the intent of the general assembly that the task force include representatives of the Department of Management, Department of Revenue, electric companies, natural gas companies, municipal utilities, electric cooperatives, counties, cities, school boards, and industrial, commercial, and residential consumers, and other appropriate stakeholders.

The purpose of the task force is to study the effects of the replacement tax on local taxing districts, consumers, and taxpayers. The Department of Management shall report the results of the study to the general assembly by January 1 of each year through January 1, 2003. The Department of Management shall also report to the legislative council by November 15 of each year through 2002, the status of the task force study and any recommendations.

TASK FORCE MEMBERS

• Charles Krogmeier, Director, Department of Management (Chair)
• Mark Schuling, Director, Department of Revenue (Chair)
• Larry Sigel, Director of School Finance, Iowa Association of School Boards
• Steve Evans, Manager, Energy & Tax Policy, MidAmerican Energy
• Jim Henter, President, Iowa Retail Federation
• Deborah Krauth, Attorney, Nyemaster Law Firm
• Alan Kemp, Asst. Director of Membership Services, Iowa League of Cities
• Tim Coonan, Government Relations Director, Iowa Association of Electric Cooperatives
• Michael C. Rubino, Manager, State and Local Taxes, Deere & Company
• Julie Smith, General Counsel, Iowa Association of Municipal Utilities
• Bill Peterson, Director, Iowa Association of Counties

TASK FORCE MEETING MINUTES (MS Word format)

• October 28, 1998
• September 30, 1999
• December 1, 1999
• April 7, 2000
• September 26, 2000
• November 28, 2000
• June 18, 2001
• August 30, 2001
• October 11, 2001
• November 8, 2001
• March 6, 2002
• June 19, 2002
• October 28, 2002
• November 26, 2002
• September 23, 2003
• November 7, 2003
• September 29, 2004
• November 6, 2006

REPORT TO THE IOWA LEGISLATIVE COUNCIL
(MS Word format)

• November 15, 1999
• January 1, 2000
• November 15, 2001
• November 15, 2002
• November 15, 2003
• November 15, 2004

IOWA CODE

Go to Iowa Code Chapter 437A

NEXT MEETING

To be determined.