Print Friendly SENATE BILL NO. 1294 – Electrical generatn, coal used, tax
SENATE BILL NO. 1294
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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1294
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
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
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.
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.
Name: Sen. Clint Stennett
Rep. Wendy Jaquet
STATEMENT OF PURPOSE/FISCAL NOTE S 1294