Culver signs bill aimed at ADM plant taxes

Gov. Chet Culver has signed legislation that would allow the Archer Daniels Midland Co. co-generation plant in Clinton to avoid a double taxation.

Under the bill, the utility replacement tax ADM pays will be used as a credit against their local property taxes.

Because the company is selling electricity, they lost their “self-generator” status that would change their tax circumstances, lawmakers said. The law was written to accommodate ADM's unique facility.

A utility replacement task force made up of state and local government officials, representatives from utilities as well as consumers studied the issues and recommended the legislation.

Sen. Roger Stewart, D-Preston, said it is still a question yet to be determined on how the local assessor will assess the exemption for machinery and equipment from property taxes.

Among the other bills Culver has signed that were announced Friday:

-- A bill that reduces Iowa Public Employees' Retirement System benefits not yet earned by regular members and raises contributions above the rate set in current law, along with a number of other changes.

-- A bill that imposes mowing restrictions within the rights-of-way and medians of interstates, primary highways and secondary roads before July 15 in an effort to maintain adequate nesting areas for native birds. The law provides for several exceptions, some of which include allowing mowing within 200 yards of a home, mowing for visibility and safety reasons, and to control noxious weeds, invasive plants and damaging insects.