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1 1 Section 1. NEW SECTION. 15E.181 INTENT.
1 2 It is the intent of the general assembly that this division
1 3 be administered in a manner to promote new economic
1 4 development in economically distressed areas by encouraging
1 5 communities to target resources in ways that attract
1 6 productive private investment.
1 7 Sec. 2. NEW SECTION. 15E.182 ENTERPRISE ZONES.
1 8 1. A county may create an economic development enterprise
1 9 zone as authorized in this division, subject to certification
1 10 by the department of economic development, by designating up
1 11 to one percent of the county area for that purpose. A county
1 12 may establish more than one enterprise zone.
1 13 2. A city with a population of twenty-five thousand or
1 14 more may create an economic development enterprise zone as
1 15 authorized in this division, subject to certification by the
1 16 department of economic development, by designating one or more
1 17 contiguous census tracts, as determined in the most recent
1 18 federal census, for that purpose. A city may establish more
1 19 than one enterprise zone. Reference in this division to
1 20 "city" means a city with a population of twenty-five thousand
1 21 or more.
1 22 3. A county or city may apply to the department for an
1 23 area to be certified as an enterprise zone at any time prior
1 24 to July 1, 2000. However, the total amount of land designated
1 25 as enterprise zones under subsections 1 and 2 shall not exceed
1 26 in the aggregate one percent of the total county area.
1 27 4. An enterprise zone designation shall remain in effect
1 28 for ten years following the date of certification. Any state
1 29 or local incentives or assistance that may be conferred must
1 30 be conferred before the designation expires. However, the
1 31 benefits of the incentive or assistance may continue beyond
1 32 the expiration.
1 33 Sec. 3. NEW SECTION. 15E.183 ELIGIBLE BUSINESS.
1 34 1. A business which is or will be located in an enterprise
1 35 zone is eligible to receive incentives and assistance under
2 1 this division if the business has not closed or reduced its
2 2 existing operation by twenty percent or more in one area of
2 3 the state and relocated substantially the same operation into
2 4 the enterprise zone and if the business meets all of the
2 5 following:
2 6 a. Pays at least eighty percent of the cost of a standard
2 7 medical and dental insurance plan for all full-time employees.
2 8 b. Pays an average wage that is at or greater than one
2 9 hundred percent of the average county wage but not less than
2 10 seven dollars and fifty cents per hour.
2 11 c. Creates at least ten full-time positions and maintains
2 12 them for at least ten years.
2 13 d. Makes a one-time capital investment of at least five
2 14 hundred thousand dollars. If the business is occupying a
2 15 vacant building suitable for industrial use, the fair market
2 16 value of the building shall be counted toward the capital
2 17 investment requirement.
2 18 2. A business is not ineligible under this section when
2 19 the business expands its operation in an enterprise zone if
2 20 existing operations of a similar nature in the state are not
2 21 closed or substantially reduced.
2 22 Sec. 4. NEW SECTION. 15E.184 DISTRESS CRITERIA.
2 23 1. An enterprise zone may be designated by a county in an
2 24 area which meets at least two of the following criteria:
2 25 a. The area has an average weekly wage that ranks among
2 26 the bottom twenty-five counties in the state based on the 1995
2 27 annual average weekly wage for employees in private business.
2 28 b. The area has a family poverty rate that ranks among the
2 29 top twenty-five counties in the state based on the 1990
2 30 census.
2 31 c. The area has experienced a percentage population loss
2 32 that ranks among the top twenty-five counties in the state
2 33 between 1990 and 1995.
2 34 d. The area has a percentage of persons sixty-five years
2 35 of age or older that ranks among the top twenty-five counties
3 1 in the state based on the 1990 census.
3 2 2. An enterprise zone may be designated by a city which
3 3 meets at least two of the following criteria:
3 4 a. The area has a per capita income of nine thousand six
3 5 hundred dollars or less based on the 1990 census.
3 6 b. The area has a family poverty rate of twelve percent or
3 7 higher based on the 1990 census.
3 8 c. Ten percent or more of the housing units are vacant in
3 9 the area.
3 10 d. The valuations of each class of property in the
3 11 designated area is seventy-five percent or less of the
3 12 citywide average for that classification based upon the most
3 13 recent valuations for property tax purposes.
3 14 3. The department of economic development shall certify
3 15 eligible enterprise zones that meet the requirements of
3 16 subsection 1 upon request by the county or subsection 2 upon
3 17 request by the city, as applicable.
3 18 Sec. 5. NEW SECTION. 15E.185 ENTERPRISE ZONE COMMISSION.
3 19 A county or city for which an eligible enterprise zone is
3 20 certified shall establish an enterprise zone commission to
3 21 review applications from qualified businesses located within
3 22 or requesting to locate within an enterprise zone to receive
3 23 incentives or assistance as provided in section 15E.186. The
3 24 commission shall include but not be limited to representatives
3 25 from the board of supervisors, cities, school districts,
3 26 community or regional economic development offices, community
3 27 colleges, and the servicing utility companies. A county and
3 28 any cities within the county may combine their commissions
3 29 into one commission.
3 30 If the enterprise zone commission determines that a
3 31 business qualifies for inclusion in an enterprise zone and is
3 32 eligible to receive incentives or assistance as provided in
3 33 section 15E.186, the commission shall submit an application
3 34 for incentives or assistance to the department of economic
3 35 development. The department may approve, defer, or deny the
4 1 application. A business that is approved to receive
4 2 incentives or assistance shall, for the length of its
4 3 designation as an enterprise zone business, certify annually
4 4 to the county or city, as applicable, and the department of
4 5 economic development its compliance with the requirements of
4 6 section 15E.183.
4 7 Sec. 6. NEW SECTION. 15E.186 INCENTIVES – ASSISTANCE.
4 8 For purposes of determining the incentives or assistance
4 9 provided in this section, "eligible business" means a business
4 10 which has been approved to receive incentives and assistance
4 11 by the department of economic development pursuant to
4 12 application as provided in section 15E.185. The incentives
4 13 and assistance provided under this division for businesses
4 14 located in enterprise zones shall include all of the
4 15 following:
4 16 1. New jobs credit from withholding, as provided in
4 17 section 15.331.
4 18 2. Sales, services, and use tax refund, as provided in
4 19 section 15.331A.
4 20 3. Investment tax credit, as provided in section 15.333.
4 21 4. Research activities credit, as provided in section
4 22 15.335.
4 23 5. The county or city for which an eligible enterprise
4 24 zone is certified may exempt from all property taxation all or
4 25 a portion of the property which is located in an enterprise
4 26 zone and which is used in the operation of the eligible
4 27 business. The exemption may be allowed for a period not to
4 28 exceed ten years beginning the year the eligible business
4 29 enters into an agreement with the county or city to locate or
4 30 expand operations in an enterprise zone.
4 31 EXPLANATION
4 32 The bill authorizes a county to designate up to 1 percent
4 33 of its total area as enterprise zones. A city with a
4 34 population of 25,000 or more may designate more than one or
4 35 more contiguous census tracts as enterprise zones. However,
5 1 the total amount of land that may be in these city and county
5 2 zones cannot exceed in the aggregate 1 percent of the total
5 3 area of the county. In addition, the department of economic
5 4 development must approve any such designation. In order for
5 5 an area to be designated an enterprise zone, at least two of
5 6 four criteria must be met. For counties, these are having an
5 7 average weekly wage that ranks among the bottom 25 counties
5 8 based upon 1995 statistics; family poverty rate that ranks
5 9 among the top 25 counties based upon the 1990 census;
5 10 population loss that ranks among the top 25 counties between
5 11 1990 and 1995; and a percentage of persons 65 years old that
5 12 ranks among the top 25 counties. In the case of city-
5 13 designated areas these are having a per capital income of
5 14 $9,600 or less, poverty rate of 12 percent or more, and 10
5 15 percent or more of housing units are vacant, all according to
5 16 the 1990 census, and the valuations in the area equal 75
5 17 percent or less of the average for the city. A business that
5 18 is or will be located in the enterprise zone shall receive
5 19 incentives or assistance if the business meets all of certain
5 20 eligibility criteria. These criteria include paying at least
5 21 80 percent of the cost of standard medical and dental
5 22 insurance, paying at least 100 percent of the average wage in
5 23 the county but not less than $7.50, creation of at least 10
5 24 new jobs, and making a capital investment of at least
5 25 $500,000. Businesses that move all or 20 percent or more of
5 26 similar operations from another part of the state to the
5 27 enterprise zone are not eligible.
5 28 The incentives and assistance that shall be provided are a
5 29 new jobs credit for training new employees to work in the
5 30 zone, refund of sales and services taxes for utility services
5 31 furnished in the zone and for materials used in construction
5 32 contracts done in the zone, investment tax credit for
5 33 investments made in the zone, credit for increasing research
5 34 activities in the state, and if the county or city so decides,
5 35 exemption from all property taxation for property used in the
6 1 business in the zone.
6 2 LSB 2694SV 77
6 3 mg/sc/14
Text: SF00509 Text: SF00511 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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