Text: HSB00697 Text: HSB00699 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 403.5, subsection 5, Code Supplement 1 2 1999, is amended by adding the following new unnumbered 1 3 paragraph: 1 4 NEW UNNUMBERED PARAGRAPH. If an urban renewal plan is 1 5 amended and the amendment to the plan provides for the 1 6 addition of territory to the urban renewal area, the 1 7 assessment year established for purposes of dividing revenue 1 8 under section 403.19 shall be that determined pursuant to 1 9 section 403.19, subsection 7. 1 10 Sec. 2. Section 403.5, Code Supplement 1999, is amended by 1 11 adding the following new subsection: 1 12 NEW SUBSECTION. 8. The designation of an urban renewal 1 13 area pursuant to this section shall be limited in duration to 1 14 twenty years counting from July 1 of the fiscal year in which 1 15 the first payment was due on any loans, advances, 1 16 indebtedness, or bonds which qualify for payment from the 1 17 division of revenue provided in section 403.19. However, the 1 18 duration of an urban renewal area established before July 1, 1 19 2000, shall run for twenty years counting from July 1 of the 1 20 first fiscal year in which the municipality received moneys 1 21 from a division of revenue pursuant to section 403.19, or, 1 22 shall run until June 30 of the fiscal year in which the amount 1 23 of loans, advances, indebtedness, or bonds due and owing on 1 24 the effective date of this Act are paid, whichever is later. 1 25 Sec. 3. Section 403.5, Code Supplement 1999, is amended by 1 26 adding the following new subsection: 1 27 NEW SUBSECTION. 9. A municipality shall not designate as 1 28 a proposed urban renewal area an urban renewal area, or any 1 29 part of an urban renewal area, whose designation has expired 1 30 or will expire pursuant to subsection 8, until five years 1 31 after the expiration. 1 32 Sec. 4. Section 403.5, Code Supplement 1999, is amended by 1 33 adding the following new subsection: 1 34 NEW SUBSECTION. 10. An urban renewal area shall not 1 35 include any part of an area designated by ordinance as an 2 1 urban revitalization area pursuant to chapter 404. An urban 2 2 renewal area shall not include any part of an area previously 2 3 designated by ordinance as an urban revitalization area 2 4 pursuant to chapter 404 until five years after expiration of 2 5 the property tax exemption granted to qualified real estate in 2 6 the urban revitalization area. As of July 1, 2000, an 2 7 exemption from taxation granted pursuant to chapter 404 shall 2 8 not be allowed in that portion of an urban revitalization area 2 9 which is located in an urban renewal area. 2 10 Sec. 5. Section 403.17, subsection 9, Code Supplement 2 11 1999, is amended to read as follows: 2 12 9. "Economic development area" means an area of a 2 13 municipality designated by the local governing body as 2 14 appropriate for commercial and industrial enterprises, public 2 15 improvements related to housing and residential development, 2 16 or construction of housing and residential development for low 2 17 and moderate income families, including single or multifamily 2 18 housing.If an urban renewal plan for an urban renewal area2 19is based upon a finding that the area is an economic2 20development area and that no part contains slum or blighted2 21conditions, then the division of revenue provided in section2 22403.19 and stated in the plan shall be limited to twenty years2 23from the calendar year following the calendar year in which2 24the city first certifies to the county auditor the amount of2 25any loans, advances, indebtedness, or bonds which qualify for2 26payment from the division of revenue provided in section2 27403.19.Such designated area shall not include land which is 2 28 part of a century farm, unless the owner of the century farm 2 29 agrees to include the century farm in the urban renewal area. 2 30 For the purposes of this subsection, "century farm" means a 2 31 farm in which at least forty acres of such farm have been held 2 32 in continuous ownership by the same family for one hundred 2 33 years or more. 2 34 Sec. 6. Section 403.19, subsection 2, Code 1999, is 2 35 amended to read as follows: 3 1 2. That portion of the taxes each year in excess of such 3 2 amount shall be allocated to and when collected be paid into a 3 3 special fund of the municipality to pay the principal of and 3 4 interest on loans, moneys advanced to, or indebtedness, 3 5 whether funded, refunded, assumed, or otherwise, including 3 6 bonds issued under the authority of section 403.9, subsection 3 7 1, incurred by the municipality to finance or refinance, in 3 8 whole or in part, an urban renewal project within the area, 3 9 and to provide assistance for low and moderate income family 3 10 housing as provided in section 403.22, except that taxes for 3 11 the payment of bonds and interest of each taxing district and 3 12 taxes for levies approved by the voters of a taxing district 3 13 must be collected against all taxable property within the 3 14 taxing district without limitation by the provisions of this 3 15 subsection. Unless and until the total assessed valuation of 3 16 the taxable property in an urban renewal area exceeds the 3 17 total assessed value of the taxable property in such area as 3 18 shown by the last equalized assessment roll referred to in 3 19 subsection 1, all of the taxes levied and collected upon the 3 20 taxable property in the urban renewal area shall be paid into 3 21 the funds for the respective taxing districts as taxes by or 3 22 for the taxing districts in the same manner as all other 3 23 property taxes. When such loans, advances, indebtedness, and 3 24 bonds, if any, and interest thereon, have been paid, all 3 25 moneys thereafter received from taxes upon the taxable 3 26 property in such urban renewal area shall be paid into the 3 27 funds for the respective taxing districts in the same manner 3 28 as taxes on all other property. 3 29 Sec. 7. Section 403.19, subsection 3, Code 1999, is 3 30 amended to read as follows: 3 31 3. The portion of taxesmentioned in subsection 2 and3 32 allocated to the special fund into which they shall be paid, 3 33 may be irrevocably pledged by a municipality for the payment 3 34 of the principal and interest on loans, advances, bonds issued 3 35 under the authority of section 403.9, subsection 1, or 4 1 indebtedness incurred by a municipality to finance or 4 2 refinance, in whole or in part, the urban renewal project 4 3 within the area. That portion of taxes allocable to the 4 4 special fund which exceeds the amount certified pursuant to 4 5 subsection 5 shall be treated as taxes collected under 4 6 subsection 1 and disbursed by the treasurer as regular taxes. 4 7 Sec. 8. Section 403.19, subsection 5, Code 1999, is 4 8 amended to read as follows: 4 9 5. A municipality shall certify to the county auditor on 4 10 or before December 1 of each year an amount equal to one 4 11 hundred ten percent of the amount of loans, advances, 4 12 indebtedness, or bonds which qualify for payment during the 4 13 next fiscal year from the special fund referred to in 4 14 subsection 2, and the filing of the certificate shall make it 4 15 a duty of the auditor to provide for the division of taxes in 4 16 the amount certified for each subsequent fiscal year until the 4 17 amount of the loans, advances, indebtedness, or bonds is paid 4 18 to the special fund or until such time as specified in section 4 19 403.5, subsection 8, or section 403.22, subsection 5.In any4 20year, the county auditor shall, upon receipt of a certified4 21request from a municipality filed on or before December 1,4 22increase the amount to be allocated under subsection 1 in4 23order to reduce the amount to be allocated in the following4 24fiscal year to the special fund, to the extent that the4 25municipality does not request allocation to the special fund4 26of the full portion of taxes which could be collected.The 4 27 amount of loans, advances, indebtedness, or bonds certified to 4 28 the county auditor for payment in the next fiscal year shall 4 29 be only that amount due and payable in that fiscal year. In 4 30 addition, the certificate shall list each project within an 4 31 urban renewal area; the amount of loans, advances, 4 32 indebtedness, or bonds which qualify for payment from the 4 33 special fund for each project; the total of such amount for 4 34 each urban renewal area located in the municipality; the 4 35 expiration of the urban renewal area, if applicable, or 5 1 otherwise, the term of the indebtedness; and any other 5 2 information the auditor may require in order to determine the 5 3 amount to be allocated to subsection 2. Upon receipt of a 5 4 certificate from a municipality, the auditor shall mail a copy 5 5 of the certificate to each affected taxing district. 5 6 Sec. 9. Section 403.19, subsection 6, Code 1999, is 5 7 amended by striking the subsection. 5 8 Sec. 10. Section 403.19, Code 1999, is amended by adding 5 9 the following new subsection: 5 10 NEW SUBSECTION. 7. If an urban renewal plan is amended 5 11 and the amendment to the plan provides for the addition of 5 12 territory to the urban renewal area, the assessment year for 5 13 purposes of dividing revenue under this section shall be 5 14 reestablished for the entire urban renewal area as the 5 15 assessment year beginning January 1 of the calendar year 5 16 preceding the calendar year in which the municipality adopted 5 17 the amendment. 5 18 Sec. 11. Section 403.22, subsection 5, Code 1999, is 5 19 amended to read as follows: 5 20 5. Except for a municipality with a population under 5 21 fifteen thousand, the division of the revenue under section 5 22 403.19 for each project under this section shall be limited to 5 23 tax collections for ten fiscal years beginning with the second 5 24 fiscal year after the year in which the municipality first 5 25 certifies to the county auditor the amount of any loans, 5 26 advances, indebtedness, or bonds which qualify for payment 5 27 from the division of the revenue in connection with the 5 28 project. However, in no case shall the urban renewal area 5 29 containing the project extend beyond the durational limit in 5 30 section 403.5, subsection 8. A municipality with a population 5 31 under fifteen thousand may, with the approval of the governing 5 32 bodies of all other affected taxing districts, extend the 5 33 division of revenue under section 403.19 for up to five years 5 34 if necessary to adequately fund the project. The portion of 5 35 the urban renewal area which is involved in a project under 6 1 this section shall not be subject to any subsequent division 6 2 of revenue under section 403.19. 6 3 Sec. 12. Section 403.22, Code 1999, is amended by adding 6 4 the following new subsection: 6 5 NEW SUBSECTION. 7. For purposes of this section and 6 6 section 403.17, subsection 9, "public improvements" does not 6 7 include improvements that would otherwise be chargeable 6 8 against the property as a special assessment as provided in 6 9 sections 384.37 through 384.79 or sections 331.485 through 6 10 331.491. This subsection does not apply to construction of 6 11 housing and residential development for low and moderate 6 12 income families. This subsection does not apply to 6 13 improvements to property assessed as commercial or industrial 6 14 property. 6 15 Sec. 13. Section 403.23, Code Supplement 1999, is amended 6 16 by adding the following new subsection: 6 17 NEW SUBSECTION. 3. If a municipality does not file the 6 18 annual report with the department of management and the county 6 19 auditor by October 1, the county treasurer shall withhold 6 20 disbursement of incremental taxes to the municipality until 6 21 the annual report is filed beginning immediately with the next 6 22 following disbursement of taxes. 6 23 Sec. 14. Section 404.2, subsection 2, paragraph a, Code 6 24 1999, is amended to read as follows: 6 25 a. A legal description of the real estate forming the 6 26 boundaries of the proposed area along with a map depicting the 6 27 existing parcels of real estate. An urban revitalization area 6 28 shall not include any part of an area designated as an urban 6 29 renewal area pursuant to chapter 403. 6 30 Sec. 15. Section 404.3, subsection 6, Code 1999, is 6 31 amended to read as follows: 6 32 6. The tax exemption schedule specified in subsection 1, 6 33 2, 3, or 4 shall apply to every revitalization area within a 6 34 city or county unless a different schedule is adopted in the 6 35 city or county plan as provided in section 404.2. However, a 7 1 city or county shall not adopt a different schedule unless 7 2 every revitalization area within the city or county has the 7 3 same schedule applied to it, except in areas of the city or7 4county which have been designated as both urban renewal and7 5urban revitalization areas. In an area designated for both7 6urban renewal and urban revitalization, a city or county may7 7adopt a different schedule than has been adopted for7 8revitalization areas which have not been designated as urban7 9renewal areas. The different schedule adopted shall not 7 10 provide for a larger tax exemption in a particular year than 7 11 is provided for that year in the schedule specified in the 7 12 corresponding subsection of this section. 7 13 Sec. 16. Section 403.20, Code 1999, is repealed. 7 14 Sec. 17. This Act applies to urban renewal areas and urban 7 15 revitalization areas established before, on, or after the 7 16 effective date of this Act. Sections 6, 7, 8, and 9 of this 7 17 Act, amending section 403.19, subsections 2, 3, 5, and 6, 7 18 apply to amounts certified for purposes of urban renewal for 7 19 taxes due and payable for the fiscal year beginning July 1, 7 20 2001. 7 21 EXPLANATION 7 22 This bill makes several changes to the urban renewal law. 7 23 The bill provides that if an urban renewal plan is amended 7 24 to add territory to an urban renewal area, the assessment year 7 25 for purposes of tax increment financing must be reestablished. 7 26 The bill also limits all urban renewal areas to 20 years in 7 27 duration. 7 28 The bill prohibits the location of any part of an urban 7 29 revitalization area in an urban renewal area and provides that 7 30 an area formerly designated as an urban revitalization area 7 31 may not be included in an urban renewal area until five years 7 32 after the expiration of the urban revitalization property tax 7 33 exemptions. The bill requires that tax revenues from voter- 7 34 approved levies be paid to the taxing district where the levy 7 35 was approved. The bill requires that of the property taxes 8 1 collected from the urban renewal area only that portion 8 2 necessary to pay the amount of indebtedness due in the fiscal 8 3 year as certified by the municipality to the county auditor 8 4 may be retained by the municipality and expended for purposes 8 5 of the urban renewal area. The bill also requires that more 8 6 detailed information be included on the certificates of 8 7 indebtedness filed by the municipality with the county 8 8 auditor. 8 9 The bill provides that public improvements for residential 8 10 development in an economic development area do not include 8 11 improvements that are otherwise payable by special assessment. 8 12 However, this restriction does not apply to residential 8 13 development for low and moderate income housing or to property 8 14 assessed as commercial or industrial. 8 15 The bill also provides that if a municipality has not filed 8 16 an annual report with the state by the statutory deadline, the 8 17 county treasurer shall withhold disbursement of tax increment 8 18 revenues to the municipality. 8 19 The bill provides that a revitalization area not include 8 20 any area designated as an urban renewal area. 8 21 The bill further provides that as of July 1, 2000, an urban 8 22 revitalization tax exemption shall not be allowed in that 8 23 portion of an urban revitalization area which is located in an 8 24 urban renewal area. 8 25 The bill applies to urban renewal areas established before, 8 26 on, or after the effective date of the bill. The portion of 8 27 the bill amending provisions relating to the certification and 8 28 allocation of tax increment revenues applies to amounts 8 29 certified for urban renewal for taxes due and payable in the 8 30 fiscal year beginning July 1, 2001. 8 31 LSB 5872HC 78 8 32 sc/cls/14
Text: HSB00697 Text: HSB00699 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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