A bill for an act relating to the assessment of property containing certain aboveground tanks and including applicability provisions.(See HF 206.)
If enacted, HSB67 will amend the existing property tax code, specifically Section 427A.1, which outlines how property is assessed and taxed in Iowa. The new provision will mean that owners of aboveground flammable or combustible liquid storage tanks will no longer face property tax liabilities for these structures, effective for assessment years beginning January 1, 2024. This alteration is expected to encourage the storage and use of such tanks without the burden of local property taxes, which may incentivize business operations in sectors that rely on these storage solutions.
House Study Bill 67 (HSB67) relates to the assessment and taxation of property containing certain aboveground tanks. Specifically, the bill proposes that aboveground flammable or combustible liquid storage tanks, regardless of size, will not be assessed and taxed as real property if they are not permanently affixed and would typically be removed when the property owner relocates. This change is significant as it shifts how these types of properties are evaluated for tax purposes, potentially leading to substantial savings for owners of such tanks.
While proponents of HSB67 argue that the bill will reduce unnecessary taxation on property that is not permanently affixed, critics may raise concerns about fire safety regulations and environmental impact. The exemption from property assessment could lead to an increase in the number of these tanks, and opponents might argue that the legislation undermines local control over property safety regulations. The discussions surrounding the bill will likely include considerations of ensuring that while taxation is reduced, safety and environmental standards remain intact.