Bills › 91st General Assembly
Where it is now
- Done: IntroducedFebruary 20, 2025
- Done: SubcommitteeFebruary 20, 2025
- Done: House committeeMay 12, 2025
- Skipped: Passes the HouseContinued as HF 1050
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 1050 → Its progress continues under the new number. Go to HF 1050 What’s a funnel?
What’s in it
AI summary Aboveground storage tanks that owners typically take with them when they move will no longer be taxed as real property. This change affects how these tanks are valued for property taxes. Additionally, the bill changes how certain tax credits and exemptions are handled if the state does not provide enough money to pay for them.1
Read the official explanation
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 of any size that would ordinarily be removed when the owner of the property moves to another location shall not be assessed and taxed as real property.7. _____ 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.
House subcommittee
Named February 20, 2025. On March 12, 2025 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill exempts aboveground storage tanks with a capacity of 91,000 gallons or less from property taxation. It is estimated to decrease local property tax revenues for local governments starting in fiscal year 2027. The note does not provide a specific dollar amount for the total reduction in local property tax revenue.3
Read the fiscal note
Description
House File 1050 exempts an aboveground storage tank with a storage capacity of 91,000 gallons or less from property taxation, regardless of whether the tank is attached to or unattached from real property.
The Bill makes Iowa Code section 25B.7 (State funding of property tax credits and exemptions) inapplicable to the new exemption.
The Bill takes effect upon enactment and applies retroactively to assessment years (AY) beginning on or after January 1, 2025, with property taxes first due and payable in fiscal year (FY) 2027.
Background
Iowa Code section 427A.1 specifies that structures and improvements that are attached to land or buildings shall be considered real property and subject to property tax. Personal property, by contrast, generally consists of property that is not permanently affixed to or attached to real estate. Iowa Code section 427A.1(1) defines personal property for purposes of property taxation as property other than real property. Historically, machinery and equipment used in business operations that are not permanently attached to the land have been treated as personal property rather than taxable real property.
The Department of Revenue’s Iowa Real Property Appraisal Manual specifies how aboveground storage tanks are to be assessed and valued by assessors. The portion that pertains to the assessment and value of aboveground tanks begins with tank capacities as low as 1,000 gallons (133.7 cubic feet).
Iowa law also requires annual registration of aboveground storage tanks through the Iowa Department of Inspections, Appeals, and Licensing (DIAL) under Iowa Code chapter 455G. Tanks meeting statutory size and substance thresholds must report information including tank capacity and location. However, the DIAL registration is not designed for property tax administration purposes and does not identify whether a tank is assessed as real property or personal property.
Assessment practices for aboveground storage tanks may vary by county depending on factual determinations regarding attachment and improvement status.
Assumptions
- This estimate assumes all aboveground storage tanks currently registered under Iowa Code chapter 455G are classified as commercial or industrial (C/I) property for property tax purposes.
- A review of 15 assessor areas in Iowa conducted by the Iowa State Association of Assessors determined that assessed aboveground storage tanks represent 0.48% of all the C/I value within those assessor areas. This percentage is assumed to apply to all 106 assessor areas within the State.
- The statewide total C/I taxed value for FY 2025 is $60.563 billion. Aboveground storage tanks are assumed to represent 0.48% of that statewide amount, or $261.8 million.
- The statewide average C/I property tax rate for FY 2026 is $37.70 per $1,000 of taxed value. Of that $37.70 tax rate, $5.40 represents the school finance basic levy.
- Loss of local property tax revenues will not trigger the implementation of the General Fund appropriation to schools by $5.40 per $1,000 of exempted value by operation of the State school aid formula which would have resulted in a projected increase in the annual State General Fund appropriation for school aid of $1.6 million.
Fiscal Impact
The fiscal impact for House File 1050 is displayed below. Figure 1 shows the estimated decrease to local property taxes by fiscal year.
Figure 1 — Local Government Property Tax Revenue Reduction (in Millions)
Sources
- Iowa State Association of Assessors
- Department of Revenue
- Department of Management property tax rate and value files
- Legislative Services Agency calculations
- Aboveground Storage Tanks, Assessments · April 7, 2026
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91st General Assembly
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Tried before
This idea has been filed in an earlier General Assembly. None became law, though one got through a chamber.
- HF 206 Relating to the assessment of property containing certain aboveground storage tanks and in…90th General Assembly · Passed House · same titlePassed a chamber
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