Iowa Supreme Court Rules Aboveground Storage Tanks Are Not Assessable Under Iowa Code

The wheels of justice move slowly. Finally, after nearly seven years of legal challenges led by FUELIowa and our members, the Iowa Supreme has issued a ruling on the taxability of aboveground storage tanks. In a decision titled Chickasaw County Board of Review v. Iowa Property Assessment Appeals Board and Growmark, filed on June 5, 2026,  the Iowa Supreme Court affirmed a decision from district court in Chickasaw County and held that the eleven 90,000-gallon propane storage tanks at issue were not assessable as real property under Iowa Code section 427A.1.

The decision by the Iowa Supreme Court concludes a lengthy legal battle with county assessors across the state. FUELIowa supported appeals centered around the taxability of aboveground storage tanks at ten bulk storage facilities across the state. In all instances, the court or county attorney sided with the tank owner via a court ruling or settlement agreement. With the June 5 Iowa Supreme Court ruling now public, multiple district courts, the Iowa Property Assessment Appeals Board, the Iowa Court of Appeals, and the Iowa Supreme Court have all heard arguments on the issue, and all have ruled in favor of tank owners challenging the inclusion of aboveground storage tanks for property tax purposes.

With the favorable Iowa Supreme Court decision now firmly in hand, FUELIowa members are encouraged to review their property assessments through the Beacon platform to determine whether your tanks are being included in your assessment. Transparency comes in all forms among assessors and there is no one size fits all template for assessments. Often, tanks are referenced within the “yard extras” category and if you have any trouble determining the tax status of your tanks at your facility, I encourage you to contact your assessor and ask them directly. Alternatively, give me a call and we can work through the issue together.

After learning the status of your tanks using the Beacon platform, ask your county assessor to remove the tanks from the tax roll at your facility. In the past, tank owner’s requesting removal have met resistance from assessor’s centered on the contents, orientation (horizontal v. vertical), and/or size of the tank. Fortunately, the Iowa Supreme Court decision makes clear that content and orientation are of no consideration in the taxability of an aboveground tank. As it relates to the size of a tank, at a minimum, the Iowa Supreme Court decision filed on June 5, 2026, applies to any aboveground storage tank with a capacity up to 90,000 gallons.

It’s possible that your inquiry to your county assessor to have your tanks removed from your tax roll may be met with administrative hurdles due to timing. Nonetheless, odd-numbered years afford taxpayers a formal right to appeal their property tax assessment before the taxing authority’s local Board of Review. Appeal hearings before your county Board of Review are straightforward and legal representation is optional.

Assessments should arrive in late March or early April of calendar year 2027. Upon receipt, you will have a 30-day window to respond, request an appeal, and secure a hearing before your local county Board of Review. The reason for your appeal will be the assessment at your facility is contrary to law and you should cite the June 5, 2026, Iowa Supreme Court decision in Chickasaw County Board of Review v. the Iowa Property Assessment Appeals Board and Growmark as the basis for your claim for relief.

FUELIowa members are encouraged to contact John Maynes with any questions about the process of having your aboveground tanks removed from your tax roll. The Supreme Court decision serves as a victory for Iowa’s rural fuel distribution network and benefits fuel marketers, commercial and residential end-users, and farmers alike. Be sure to share this news with your customers throughout Iowa so they can enjoy the relief as well.