2006 Legislation
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SENATE BILL NO. 1294 – Electrical generatn, coal used, tax

SENATE BILL NO. 1294

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Bill Status



S1294...........................................................by STENNETT
OPERATING PROPERTY - Amends existing law to provide that on and after
January 1, 2006, any newly installed or constructed equipment using coal to
generate electricity with a nameplate capacity of 250 megawatts and not
owned by a public utility shall be assessed by the State Tax Commission;
and to provide for apportionment to the various taxing districts.
                                                                        
01/20    Senate intro - 1st rdg - to printing
01/23    Rpt prt - to St Aff

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1294
                                                                        
                                        BY STENNETT
                                                                        
  1                                        AN ACT
  2    RELATING TO ASSESSMENT OF OPERATING PROPERTY; AMENDING SECTION  63-405,  IDAHO
  3        CODE, TO PROVIDE THAT ON AND AFTER JANUARY 1, 2006, ANY NEWLY INSTALLED OR
  4        CONSTRUCTED EQUIPMENT USING  COAL TO GENERATE ELECTRICITY WITH A NAMEPLATE
  5        CAPACITY  OF TWO HUNDRED FIFTY MEGAWATTS AND NOT OWNED BY A PUBLIC UTILITY
  6        SHALL BE ASSESSED BY THE STATE TAX COMMISSION AND TO  PROVIDE  FOR  APPOR-
  7        TIONMENT  TO THE VARIOUS TAXING DISTRICTS; DECLARING AN EMERGENCY AND PRO-
  8        VIDING RETROACTIVE APPLICATION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 63-405, Idaho Code, be, and the  same  is  hereby
 11    amended to read as follows:
                                                                        
 12        63-405.  ASSESSMENT  OF  OPERATING  PROPERTY. (1) The state tax commission
 13    must assess all operating property at a meeting of the commission convening on
 14    the second Monday of August in each year, and must complete the assessment  of
 15    such property on the fourth Monday in August.
 16        (2)  The  state tax commission shall determine the system value and calcu-
 17    late the allocation and apportionment of the system value  for  all  operating
 18    property and specifically determine:
 19        (a)  The  number  of  miles and the value per mile of each railroad in the
 20        state and for each taxing district in which such railroad may exist.
 21        (b)  The number of miles and the value per mile of each telephone corpora-
 22        tion in the state and for each taxing district  in  which  such  telephone
 23        corporation may exist.
 24        (c)  The  number  of  miles and the value per mile of each pipeline in the
 25        state and for each taxing district in which such pipeline may exist.
 26        (d)  The number of miles and the value per  mile  of  each  water  company
 27        under  the  jurisdiction  of the public utilities commission in the state,
 28        and for each taxing district in which such water company  may  exist.  The
 29        value  per mile of any line included in this subsection, except railroads,
 30        shall be determined by dividing the total value of such  line  within  the
 31        state  by the number of miles of such line within the state. The value per
 32        mile of railroad line shall be determined by apportionment  of  the  total
 33        value  of  line  within the state. The apportionment shall be based twenty
 34        percent (20%) on the ratio of line miles in the state to line miles in the
 35        county; forty percent (40%) on the ratio of net ton miles in the state  to
 36        net  ton miles in the county; and forty percent (40%) on the ratio of sta-
 37        tion revenues in the state to station revenues in the county. All  operat-
 38        ing  property of railroads shall be apportioned to the counties as part of
 39        the railroad line in the county. The apportionment  for  taxing  districts
 40        shall be the same as the apportionment among counties.
 41        (e)  The  system value, the number of miles and the value per mile of each
 42        electric current transmission line and each electric current  distribution
 43        line  in  each county separately, and for each taxing district within said
                                                                        
                                           2
                                                                        
  1        county in which such transmission and distribution lines  may  exist.  The
  2        value per mile of any line included in this subsection shall be determined
  3        by  dividing  the apportioned value of such line within each county by the
  4        number of miles of such line within said county.
  5        (f)  The system value of private railcar fleets entering  or  standing  in
  6        Idaho  in  the  year preceding the constituted lien as provided in section
  7        63-411(3), Idaho Code.
  8        (g)  The system value and calculate the allocation  and  apportionment  of
  9        the system value for all other operating property.
 10        (3)  On  and  after  January  1,  2004, any newly installed or constructed
 11    equipment located within a city corporate limit or within five (5) miles of  a
 12    city  corporate limit and used for and in conjunction with the thermal genera-
 13    tion of electricity shall be apportioned based on physical  location.  On  and
 14    after January 1, 2006, any newly installed or constructed equipment using coal
 15    to  generate  electricity with a nameplate capacity of two hundred fifty (250)
 16    megawatts and not owned by a public utility shall be assessed by the state tax
 17    commission. The value of the equipment will be apportioned to the various tax-
 18    ing districts using the apportionment formula of the  public  utility  serving
 19    the area where the equipment is located. For purposes of this subsection newly
 20    installed  or constructed equipment used for and in conjunction with the ther-
 21    mal generation of electricity shall not include the remodeling,  retrofitting,
 22    rehabilitation, refurbishing or modification of an existing electrical genera-
 23    tion facility, or integration or transformation facilities such as substations
 24    or transmission lines.
 25        (4)  If the value of property of any company assessable under this section
 26    is  of  such a nature that it cannot reasonably be apportioned on the basis of
 27    rail, wire, pipeline mileage, such as microwave and radio relay stations,  the
 28    tax  commission  may  adopt such other method or basis of apportionment to the
 29    county and taxing districts in which the property is situate as may be  feasi-
 30    ble and proper.
                                                                        
 31        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 32    declared to exist, this act shall be in full force and effect on and after its
 33    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 15545C2

The purpose of this proposed legislation on and after January 1,
2006, any newly installed or constructed equipment using coal to
generate electricity with a nameplate capacity of two hundred
fifty megawatts and not owned by a public utility shall be
assessed by the state tax commission.  The value of equipment
will be apportioned to the various taxing districts using the
apportionment formula of the public utility serving the area
where the equipment is located.  This essentially makes merchant
plants and public utilities taxed in the same way.


                          FISCAL IMPACT                     

There should be no change to the total fiscal impact of total
funds returning to local governments. This legislation will treat
such a plant the same as if it were owned by a regulated utility.



 




Contact  
Name:  Sen. Clint Stennett 
       Rep. Wendy Jaquet             

Phone: 332-1351
       332-1132


STATEMENT OF PURPOSE/FISCAL NOTE                          S 1294