Text: HF00461 Text: HF00463 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 403.5, subsection 5, Code 1999, is 1 2 amended by adding the following new unnumbered paragraph: 1 3 NEW UNNUMBERED PARAGRAPH. If an urban renewal plan is 1 4 amended and the amendment to the plan provides for the 1 5 addition of territory to the urban renewal area, the 1 6 assessment year established for purposes of dividing revenue 1 7 under section 403.19 shall be that determined pursuant to 1 8 section 403.19, subsection 7. 1 9 Sec. 2. Section 403.5, Code 1999, is amended by adding the 1 10 following new subsection: 1 11 NEW SUBSECTION. 8. The designation of an urban renewal 1 12 area pursuant to this section shall be limited in duration to 1 13 twenty years counting from July 1 of the fiscal year in which 1 14 the first payment was due on any loans, advances, 1 15 indebtedness, or bonds which qualify for payment from the 1 16 division of revenue provided in section 403.19. However, the 1 17 duration of an urban renewal area established before July 1, 1 18 1999, shall run for twenty years counting from July 1 of the 1 19 first fiscal year in which the municipality received moneys 1 20 from a division of revenue pursuant to section 403.19, or, 1 21 shall run until June 30 of the fiscal year in which the amount 1 22 of loans, advances, indebtedness, or bonds due and owing on 1 23 the effective date of this Act are paid, whichever is later. 1 24 Sec. 3. Section 403.5, Code 1999, is amended by adding the 1 25 following new subsection: 1 26 NEW SUBSECTION. 9. A municipality shall not designate as 1 27 a proposed urban renewal area an urban renewal area, or any 1 28 part of an urban renewal area, whose designation has expired 1 29 or will expire pursuant to subsection 8, until five years 1 30 after the expiration. 1 31 Sec. 4. Section 403.5, Code 1999, is amended by adding the 1 32 following new subsection: 1 33 NEW SUBSECTION. 10. An urban renewal area shall not 1 34 include any part of an area designated by ordinance as an 1 35 urban revitalization area pursuant to chapter 404. An urban 2 1 renewal area shall not include any part of an area previously 2 2 designated by ordinance as an urban revitalization area 2 3 pursuant to chapter 404 until five years after expiration of 2 4 the property tax exemption granted to qualified real estate in 2 5 the urban revitalization area. As of July 1, 1999, an 2 6 exemption from taxation granted pursuant to chapter 404 shall 2 7 not be allowed in that portion of an urban revitalization area 2 8 which is located in an urban renewal area. 2 9 Sec. 5. Section 403.17, subsection 9, Code 1999, is 2 10 amended to read as follows: 2 11 9. "Economic development area" means an area of a 2 12 municipality designated by the local governing body as 2 13 appropriate for commercial and industrial enterprises, public 2 14 improvements related to housing and residential development, 2 15 or construction of housing and residential development for low 2 16 and moderate income families, including single or multifamily 2 17 housing.If an urban renewal plan for an urban renewal area2 18is based upon a finding that the area is an economic2 19development area and that no part contains slum or blighted2 20conditions, then the division of revenue provided in section2 21403.19 and stated in the plan shall be limited to twenty years2 22from the calendar year following the calendar year in which2 23the city first certifies to the county auditor the amount of2 24any loans, advances, indebtedness, or bonds which qualify for2 25payment from the division of revenue provided in section2 26403.19.Such designated area shall not include land which is 2 27 part of a century farm, unless the owner of the century farm 2 28 agrees to include the century farm in the urban renewal area. 2 29 For the purposes of this subsection, "century farm" means a 2 30 farm in which at least forty acres of such farm have been held 2 31 in continuous ownership by the same family for one hundred 2 32 years or more. 2 33 Sec. 6. Section 403.19, subsection 3, Code 1999, is 2 34 amended to read as follows: 2 35 3. The portion of taxesmentioned in subsection 2 and3 1 allocated to the special fund into which they shall be paid, 3 2 may be irrevocably pledged by a municipality for the payment 3 3 of the principal and interest on loans, advances, bonds issued 3 4 under the authority of section 403.9, subsection 1, or 3 5 indebtedness incurred by a municipality to finance or 3 6 refinance, in whole or in part, the urban renewal project 3 7 within the area. That portion of taxes allocable to the 3 8 special fund which exceeds the amount certified pursuant to 3 9 subsection 5 shall be treated as taxes collected under 3 10 subsection 1 and disbursed by the treasurer as regular taxes. 3 11 Sec. 7. Section 403.19, subsection 5, Code 1999, is 3 12 amended to read as follows: 3 13 5. A municipality shall certify to the county auditor on 3 14 or before December 1 of each year an amount equal to one 3 15 hundred ten percent of the amount of loans, advances, 3 16 indebtedness, or bonds which qualify for payment during the 3 17 next fiscal year from the special fund referred to in 3 18 subsection 2, and the filing of the certificate shall make it 3 19 a duty of the auditor to provide for the division of taxes in 3 20 the amount certified for each subsequent fiscal year until the 3 21 amount of the loans, advances, indebtedness, or bonds is paid 3 22 to the special fund or until such time as specified in section 3 23 403.5, subsection 8, or section 403.22, subsection 5.In any3 24year, the county auditor shall, upon receipt of a certified3 25request from a municipality filed on or before December 1,3 26increase the amount to be allocated under subsection 1 in3 27order to reduce the amount to be allocated in the following3 28fiscal year to the special fund, to the extent that the3 29municipality does not request allocation to the special fund3 30of the full portion of taxes which could be collected.The 3 31 amount of loans, advances, indebtedness, or bonds certified to 3 32 the county auditor for payment in the next fiscal year shall 3 33 be only that amount due and payable in that fiscal year. In 3 34 addition, the certificate shall list each project within an 3 35 urban renewal area; the amount of loans, advances, 4 1 indebtedness, or bonds which qualify for payment from the 4 2 special fund for each project; the total of such amount for 4 3 each urban renewal area located in the municipality; the 4 4 expiration of the urban renewal area, if applicable, or 4 5 otherwise, the term of the indebtedness; and any other 4 6 information the auditor may require in order to determine the 4 7 amount to be allocated to subsection 2. Upon receipt of a 4 8 certificate from a municipality, the auditor shall mail a copy 4 9 of the certificate to each affected taxing district. 4 10 Sec. 8. Section 403.19, subsection 6, Code 1999, is 4 11 amended by striking the subsection. 4 12 Sec. 9. Section 403.19, Code 1999, is amended by adding 4 13 the following new subsection: 4 14 NEW SUBSECTION. 7. If an urban renewal plan is amended 4 15 and the amendment to the plan provides for the addition of 4 16 territory to the urban renewal area, the assessment year for 4 17 purposes of dividing revenue under this section shall be 4 18 reestablished for the entire urban renewal area as the 4 19 assessment year beginning January 1 of the calendar year 4 20 preceding the calendar year in which the municipality adopted 4 21 the amendment. 4 22 Sec. 10. Section 403.22, subsection 5, Code 1999, is 4 23 amended to read as follows: 4 24 5. Except for a municipality with a population under 4 25 fifteen thousand, the division of the revenue under section 4 26 403.19 for each project under this section shall be limited to 4 27 tax collections for ten fiscal years beginning with the second 4 28 fiscal year after the year in which the municipality first 4 29 certifies to the county auditor the amount of any loans, 4 30 advances, indebtedness, or bonds which qualify for payment 4 31 from the division of the revenue in connection with the 4 32 project. However, in no case shall the urban renewal area 4 33 containing the project extend beyond the durational limit in 4 34 section 403.5, subsection 8. A municipality with a population 4 35 under fifteen thousand may, with the approval of the governing 5 1 bodies of all other affected taxing districts, extend the 5 2 division of revenue under section 403.19 for up to five years 5 3 if necessary to adequately fund the project. The portion of 5 4 the urban renewal area which is involved in a project under 5 5 this section shall not be subject to any subsequent division 5 6 of revenue under section 403.19. 5 7 Sec. 11. Section 403.22, Code 1999, is amended by adding 5 8 the following new subsection: 5 9 NEW SUBSECTION. 7. For purposes of this section and 5 10 section 403.17, subsection 9, "public improvements" does not 5 11 include improvements that would otherwise be chargeable 5 12 against the property as a special assessment as provided in 5 13 sections 384.37 through 384.79 or sections 331.485 through 5 14 331.491. This subsection does not apply to construction of 5 15 housing and residential development for low and moderate 5 16 income families. This subsection does not apply to 5 17 improvements to property assessed as commercial or industrial 5 18 property. 5 19 Sec. 12. NEW SECTION. 403.23 ANNUAL REPORTING. 5 20 1. On or before September 30 of each year, the 5 21 municipality shall submit the annual financial report prepared 5 22 pursuant to section 403.15 to the department of management and 5 23 to the county auditor of the county in which the municipality 5 24 is located. In addition to the information contained in the 5 25 report, the municipality shall provide the following 5 26 information to the department and to the county auditor: 5 27 a. A listing and description of each project within an 5 28 urban renewal area. 5 29 b. A description of the original purpose for establishing 5 30 the urban renewal area. 5 31 c. The establishment date of the urban renewal area and 5 32 the expiration date of the urban renewal area, if applicable 5 33 or otherwise, the term of the indebtedness. 5 34 d. The designation under which the urban renewal area was 5 35 established. 6 1 e. The base year valuation of the urban renewal area. 6 2 f. The amount of incremental valuation in the urban 6 3 renewal area. 6 4 g. A description of the use for the incremental funding. 6 5 h. The number of businesses that have located in each 6 6 urban renewal area. 6 7 i. The number of urban renewal projects that have been 6 8 completed in each urban renewal area. 6 9 j. The type and term length of financing for urban renewal 6 10 projects. 6 11 k. The amount of loans, advances, indebtedness, or bonds 6 12 which qualified for payment from the special fund for each 6 13 urban renewal project in the preceding fiscal year. 6 14 l. The total of the amount specified in paragraph "k" for 6 15 each urban renewal area located in the municipality. 6 16 2. At the request of the legislative fiscal bureau, the 6 17 department of management shall provide the reports and 6 18 additional information to the legislative fiscal bureau. The 6 19 department of management, in consultation with the legislative 6 20 fiscal bureau, shall determine reporting criteria for reports 6 21 filed with the department pursuant to this subsection. 6 22 Sec. 13. Section 404.2, subsection 2, paragraph a, Code 6 23 1999, is amended to read as follows: 6 24 a. A legal description of the real estate forming the 6 25 boundaries of the proposed area along with a map depicting the 6 26 existing parcels of real estate. An urban revitalization area 6 27 shall not include any part of an area designated as an urban 6 28 renewal area pursuant to chapter 403. 6 29 Sec. 14. Section 404.3, subsection 6, Code 1999, is 6 30 amended to read as follows: 6 31 6. The tax exemption schedule specified in subsection 1, 6 32 2, 3, or 4 shall apply to every revitalization area within a 6 33 city or county unless a different schedule is adopted in the 6 34 city or county plan as provided in section 404.2. However, a 6 35 city or county shall not adopt a different schedule unless 7 1 every revitalization area within the city or county has the 7 2 same schedule applied to it, except in areas of the city or7 3county which have been designated as both urban renewal and7 4urban revitalization areas. In an area designated for both7 5urban renewal and urban revitalization, a city or county may7 6adopt a different schedule than has been adopted for7 7revitalization areas which have not been designated as urban7 8renewal areas. The different schedule adopted shall not 7 9 provide for a larger tax exemption in a particular year than 7 10 is provided for that year in the schedule specified in the 7 11 corresponding subsection of this section. 7 12 Sec. 15. This Act applies to urban renewal areas 7 13 established before, on, or after the effective date of this 7 14 Act. Sections 6, 7, and 8 of this Act, amending section 7 15 403.19, subsections 3, 5, and 6, apply to amounts certified 7 16 for purposes of urban renewal, and taxes due and payable for 7 17 the fiscal year beginning July 1, 2000. 7 18 EXPLANATION 7 19 This bill makes several changes to the urban renewal law. 7 20 The bill provides that if an urban renewal plan is amended 7 21 to add territory to an urban renewal area, the assessment year 7 22 for purposes of tax increment financing must be reestablished. 7 23 The bill also limits all urban renewal areas to 20 years in 7 24 duration. 7 25 The bill prohibits the location of any part of an urban 7 26 revitalization area in an urban renewal area and provides that 7 27 an area formerly designated as an urban revitalization area 7 28 may not be included in an urban renewal area until five years 7 29 after the expiration of the urban revitalization property tax 7 30 exemptions. The bill requires that of the property taxes 7 31 collected from the urban renewal area only that portion 7 32 necessary to pay the amount of indebtedness due in the fiscal 7 33 year as certified by the municipality to the county auditor 7 34 may be retained by the municipality and expended for purposes 7 35 of the urban renewal area. The bill also requires that more 8 1 detailed information be included on the certificates of 8 2 indebtedness filed by the municipality with the county 8 3 auditor. 8 4 The bill provides that public improvements for residential 8 5 development in an economic development area do not include 8 6 improvements that are otherwise payable by special assessment. 8 7 However, this restriction does not apply to residential 8 8 development for low and moderate income housing or to property 8 9 assessed as commercial or industrial. 8 10 The bill provides that a revitalization area not include 8 11 any area designated as an urban renewal area. 8 12 The bill further provides that as of July 1, 1999, an urban 8 13 revitalization tax exemption shall not be allowed in that 8 14 portion of an urban revitalization area which is located in an 8 15 urban renewal area. 8 16 The bill applies to urban renewal areas established before, 8 17 on, or after the effective date of the bill. 8 18 LSB 2165YH 78 8 19 sc/gg/8.3
Text: HF00461 Text: HF00463 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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