Bill
Bill > HF1050
IA HF1050
IA HF1050A bill for an act relating to the assessment of property containing certain aboveground storage tanks and including effective date and retroactive applicability provisions.(Formerly HSB 238.)
summary
Introduced
05/13/2025
05/13/2025
In Committee
05/15/2025
05/15/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
Code section 427A.1 specifies that for the purposes of property taxation only, certain property shall be assessed and taxed, unless otherwise qualified for exemption, as real property, including buildings, structures, or improvements, any of which are constructed on or in the land, attached to the land, or placed upon a foundation whether or not attached to the foundation. However, property is not “attached” if it is a kind of property which would ordinarily be removed when the owner of the property moves to another location. This bill provides that aboveground storage tanks with a capacity of 91,000 gallons or less, no matter the use or intended use in the subject property, shall not be assessed and taxed as real property. The bill makes inapplicable Code section 25B.7. Code section 25B.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation. The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2025.
AI Summary
This bill modifies property tax assessment rules for aboveground storage tanks in Iowa by specifying that tanks with a capacity of 91,000 gallons or less shall not be assessed and taxed as real property, regardless of their use or intended use on the property. Currently, property tax law requires that certain structures and improvements attached to land be assessed as real property, but this bill creates a specific exemption for these smaller aboveground storage tanks. The bill also renders inapplicable the standard provision (Code section 25B.7) that would typically require political subdivisions to provide only a proportional tax credit if state funding is insufficient. The legislation takes effect immediately upon enactment and will apply retroactively to assessment years beginning on or after January 1, 2025, meaning property owners with these tanks can expect a tax benefit for those years. This change could potentially reduce property tax burdens for businesses, farmers, or other property owners who use smaller aboveground storage tanks for various purposes such as water, fuel, or chemical storage.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Subcommittee recommends passage. (on 02/05/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF1050 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF1050.html |
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