Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 110 - Property Tax Credits and Exemptions › Rule 701-110.31 - Broadband Infrastructure

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For purposes of this rule, the following
				definitions shall govern.
"Broadband"
means a high-speed,
				  high-capacity electronic transmission medium, including fixed wireless and
				  mobile wireless mediums, that can carry data signals from independent network
				  sources by establishing different bandwidth channels and that is commonly used
				  to deliver Internet services to the public.
"Broadband infrastructure"
means the
				  physical infrastructure used for the transmission of data that provides
				  broadband services. "Broadband infrastructure" does not include land,
				  buildings, structures, improvements, or equipment not directly used in the
				  transmission of data via broadband.
"Certified project"
means the installation
				  of broadband infrastructure certified by the office of the chief information
				  officer to serve a targeted service area.
"Communications service provider"
means a
				  service provider that provides broadband service.
"Date of commencement"
means the date first
				  occurring after July 1, 2015, and before July 1, 2020, in which broadband
				  infrastructure used in a certified project becomes property taxed as real
				  property as determined by Iowa Code section
				  427A.1.
"Date of completion"
or
"completed"
means the date that a communications service
				  provider offers or facilitates broadband service delivered at or above 25
				  megabits per second of download speed and 3 megabits per second of upload speed
				  in a targeted service area.
"Installation of the broadband
				  infrastructure"
means the labor, construction, building, and
				  furnishing of new physical infrastructure used for the transmission of data
				  that provides broadband services. "Installation of the broadband
				  infrastructure" does not include the process of removing existing
				  infrastructure, fixtures, or other real property in preparation of installation
				  of the broadband infrastructure.
"Targeted service area"
means a U.S. Census
				  Bureau census block located in this state, including any crop operation located
				  within the census block, within which no communications service provider offers
				  or facilitates broadband service at or above 25 megabits per second of download
				  speed and 3 megabits per second of upload speed as of July 1, 2015.
(2)
Exemption.
An
				exemption from property tax shall be allowed for each certified project in the
				amount equal to 100 percent of the actual value added by installation of the
				broadband infrastructure in a targeted service area that facilitates broadband
				service for the public at or above 25 megabits per second of download speed and
				3 megabits per second of upload speed, as certified by the office of the chief
				information officer. The exemption shall be allowed beginning January 1 of the
				assessment year in which an application for exemption is approved until the
				exemption is revoked or at the expiration of ten years, whichever occurs
				earlier.
(3)
Calculation of
				actual value added by installation of the broadband infrastructure.
The actual value added by installation of the broadband infrastructure is the
				amount of increase in the actual assessed value of the property that is
				directly attributable to the installation of broadband infrastructure in a
				targeted service area for the assessment year in which the property receives
				the exemption. Changes in the value of the property which are attributable to
				general market fluctuations are not to be included in the calculation of the
				actual value added by installation of the broadband infrastructure.
				Installation of broadband infrastructure that is not part of a certified
				project is not eligible to receive the exemption.
Broadband infrastructure in general may be assessed locally
				  or by the department of revenue. Broadband infrastructure that qualifies as
				  telephone or telegraph property under Iowa Code chapter 433 is centrally
				  assessed by the department of revenue. Broadband infrastructure that does not
				  qualify as telephone or telegraph property under Iowa Code chapter 433 is
				  locally assessed under Iowa Code chapter 441. The owner of the property must
				  separately report property that is centrally assessed from property that is
				  locally assessed.
a.
Locally
				assessed property.
The local assessor shall determine the actual value
				added by installation of broadband infrastructure using the methodologies
				required under Iowa Code section
				441.21.
b.
Centrally assessed
				property.
The department of revenue shall determine the actual value
				added by installation of the broadband infrastructure by using the appropriate
				methodologies set forth in 701-Chapter 77.
The department shall calculate the actual value added by
				  installation of the broadband infrastructure as part of the total unit value of
				  the operating property of the company. The exemption attributable to the
				  installation of the broadband infrastructure shall be applied to each unit
				  before any other exemption or credit. In no case shall the taxable value of the
				  property be reduced below zero. The department shall certify the exemption
				  value per line mile for each company to the county auditor pursuant to Iowa
				  Code section 433.8.