Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 110 - Property Tax Credits and Exemptions › Rule 701-110.3 - Pollution Control and Recycling Property Tax Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
(1) To secure an exemption for pollution
				control or recycling property, an application must be filed with the assessing
				authority on or before February 1 of the assessment year for which the
				exemption is first claimed. It is the responsibility of the taxpayer to secure
				the necessary certification from the department of natural resources in
				sufficient time to file the application for exemption with the assessing
				authority on or before February 1. An exemption for new pollution control or
				recycling property can be secured by filing an application with the assessing
				authority by February 1 of the assessment year following the year in which the
				property is installed or constructed. If no application is timely filed in that
				year, the property will first qualify for exemption in any subsequent year in
				which an application is filed with the assessing authority on or before
				February 1.
(2) In the event
				February 1 falls on either a Saturday or Sunday, applications for the exemption
				may be filed the following Monday.
(3) In the event February 1 falls on either a
				Saturday or Sunday, applications submitted by mail shall be accepted if
				postmarked on the following Monday.
(4) No exemption shall be allowed unless the
				application is signed by the owner of the property or the owner's qualified
				designee.
(5) An assessor may not
				refuse to accept an application for a pollution control exemption if timely
				filed and if the necessary certification has been obtained from the department
				of natural resources.
(6) The sale,
				transfer, or lease of property does not affect its eligibility for exemption as
				long as the requirements of Iowa Code subsection
				427.1(19)  and
				rule 701-80.3(427), Iowa Administrative Code, are satisfied.
(7) No exemption shall be allowed unless the
				department of natural resources has certified that the primary use of the
				property for which the taxpayer is seeking an exemption is to control or abate
				air or water pollution or to enhance the quality of any air or water in this
				state or that the primary use of the property is for recycling. Recycling
				property is property used primarily in the manufacturing process and resulting
				directly in the conversion of waste glass, waste plastic, wastepaper products,
				waste paperboard, or waste wood products into new raw materials or products
				composed primarily of recycled material.
(8) In the event that qualified property is
				assessed as a unit with other property not having a pollution control or
				recycling function, the exemption shall be limited to the increase in the
				assessed valuation of the unit which is attributable to the pollution control
				or recycling property.
EXAMPLE
Valuation of unit with pollution control or recycling
							 property
$100,000
Valuation of unit without pollution control or
							 recycling property
50,000
Allowable amount of exemption
$ 50,000
(9)
				The value of property to be exempt from taxation shall be the fair and
				reasonable market value of such property as of January 1 of each year for which
				the exemption is claimed, rather than the original cost of such
				property.
(10) An assessor shall
				not exempt property from taxation without first assessing the property for
				taxation and subsequently receiving an application for tax exemption from the
				taxpayer.
This rule is intended to implement Iowa Code Supplement
				  section 427.1(19)  as
				  amended by 2006 Iowa Acts, House File 2633, and Iowa Code sections
				  427.1(18)  and
				  441.21(1)(i).