Text: HF00678 Text: HF00680 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 403.5, subsection 5, Code 2001, 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 the territory added for 1 7 purposes of dividing revenue under section 403.19 shall be the 1 8 assessment year determined pursuant to section 403.19, 1 9 subsection 7. 1 10 Sec. 2. Section 403.5, Code 2001, is amended by adding the 1 11 following new subsection: 1 12 NEW SUBSECTION. 8. If an urban renewal plan for an urban 1 13 renewal area is based upon a finding that the area is an 1 14 economic development area and that no part contains slum or 1 15 blighted conditions, the designation of the urban renewal area 1 16 pursuant to this section shall be limited in duration to 1 17 twenty years counting from July 1 of the fiscal year in which 1 18 the first payment was due on any loans, advances, 1 19 indebtedness, or bonds which qualify for payment from the 1 20 division of revenue provided in section 403.19. However, the 1 21 duration of an urban renewal area established before July 1, 1 22 2001, shall be limited to twenty years counting from July 1 of 1 23 the first fiscal year in which the municipality received 1 24 moneys from a division of revenue pursuant to section 403.19, 1 25 or, shall end on June 30 of the fiscal year in which the 1 26 amount of loans, advances, indebtedness, or bonds due and 1 27 owing on the effective date of this Act is paid, whichever is 1 28 later. 1 29 Sec. 3. Section 403.5, Code 2001, is amended by adding the 1 30 following new subsection: 1 31 NEW SUBSECTION. 9. A municipality shall not designate as 1 32 a proposed urban renewal area an urban renewal area, or any 1 33 part of an urban renewal area, whose designation has expired 1 34 or will expire pursuant to subsection 8, until three years 1 35 after the expiration. 2 1 Sec. 4. Section 403.5, Code 2001, is amended by adding the 2 2 following new subsection: 2 3 NEW SUBSECTION. 10. An urban renewal area shall not 2 4 include any part of an area designated by ordinance as an 2 5 urban revitalization area pursuant to chapter 404 until three 2 6 years after expiration of the property tax exemption granted 2 7 to qualified real estate in the urban revitalization area. As 2 8 of July 1, 2001, an exemption from taxation pursuant to 2 9 chapter 404 shall not be granted if the qualified property is 2 10 located in an urban renewal area. Exemptions granted before 2 11 July 1, 2001, shall continue until their expiration. This 2 12 subsection applies to an urban renewal area designated in the 2 13 resolution of necessity as an economic development area and 2 14 does not apply to urban renewal areas designated by the 2 15 municipality in its resolution of necessity as a slum or 2 16 blighted area. 2 17 Sec. 5. Section 403.17, subsection 10, Code 2001, is 2 18 amended to read as follows: 2 19 10. "Economic development area" means an area of a 2 20 municipality designated by the local governing body as 2 21 appropriate for commercial and industrial enterprises, public 2 22 improvements related to housing and residential development, 2 23 or construction of housing and residential development for low 2 24 and moderate income families, including single or multifamily 2 25 housing.If an urban renewal plan for an urban renewal area2 26is based upon a finding that the area is an economic2 27development area and that no part contains slum or blighted2 28conditions, then the division of revenue provided in section2 29403.19 and stated in the plan shall be limited to twenty years2 30from the calendar year following the calendar year in which2 31the city first certifies to the county auditor the amount of2 32any loans, advances, indebtedness, or bonds which qualify for2 33payment from the division of revenue provided in section2 34403.19.Such designated area shall not include agricultural 2 35 land, including land which is part of a century farm, unless 3 1 the owner of the agricultural land or century farm agrees to 3 2 include the agricultural land or century farm in the urban 3 3 renewal area. For the purposes of this subsection, "century 3 4 farm" means a farm in which at least forty acres of such farm 3 5 have been held in continuous ownership by the same family for 3 6 one hundred years or more. 3 7 Sec. 6. Section 403.19, Code 2001, is amended by adding 3 8 the following new subsection: 3 9 NEW SUBSECTION. 7. If an urban renewal plan is amended 3 10 and the amendment to the plan provides for the addition of 3 11 territory to the urban renewal area, the assessment year for 3 12 the territory added for purposes of dividing revenue under 3 13 this section shall be the assessment year beginning January 1 3 14 of the calendar year preceding the calendar year in which the 3 15 municipality adopted the amendment. 3 16 Sec. 7. Section 403.20, Code 2001, is amended to read as 3 17 follows: 3 18 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE 3 19 ASSESSMENT. 3 20 In determining the assessed value of property within an 3 21 urban renewal area which is subject to a division of tax 3 22 revenues pursuant to section 403.19, the difference between 3 23 the actual value of the property as determined by the assessor 3 24 each year and the percentage of adjustment certified for that 3 25 year by the director of revenue and finance on or before 3 26 November 1 pursuant to section 441.21, subsection 9, 3 27 multiplied by the actual value of the property as determined 3 28 by the assessor, shall be subtracted from the actual value of 3 29 the property in the ratio that the amount of the property 3 30 value as determined pursuant to section 403.19, subsection 1, 3 31 bears to the total value of the property, and in the ratio 3 32 that the amount of the property value as determined in section 3 33 403.19, subsection 2, bears to the total value of the 3 34 property. If the assessed value of the property as determined 3 35 pursuant to section 403.19, subsection 1, is reduced to zero, 4 1 the additional valuation reduction shall be subtracted from 4 2 the actual value of the property as determinedby the assessor4 3 in section 403.19, subsection 2. 4 4 Taxes collected under section 403.19, subsection 1, shall 4 5 be paid over by the county treasurer to the municipality if 4 6 the amount certified by the municipality to the county auditor 4 7 to pay principal and interest on loans, advances, bonds, or 4 8 other indebtedness incurred prior to July 1, 2001, to finance 4 9 an urban renewal project exceeds the amount that can be 4 10 collected and deposited in the special fund under section 4 11 403.19, subsection 2. The amount of taxes paid over shall be 4 12 to the extent that the assessment limitation applied pursuant 4 13 to this section lowered the valuation available to be levied 4 14 against under section 403.19, subsection 2. This paragraph 4 15 does not apply to payment of loans, advances, bonds, or other 4 16 indebtedness refunded or originally incurred after July 1, 4 17 2001. 4 18 Sec. 8. Section 403.22, subsection 5, Code 2001, is 4 19 amended to read as follows: 4 20 5. Except for a municipality with a population under 4 21 fifteen thousand, the division of the revenue under section 4 22 403.19 for each project under this section shall be limited to 4 23 tax collections for ten fiscal years beginning with the second 4 24 fiscal year after the year in which the municipality first 4 25 certifies to the county auditor the amount of any loans, 4 26 advances, indebtedness, or bonds which qualify for payment 4 27 from the division of the revenue in connection with the 4 28 project. However, in no case shall the urban renewal area 4 29 containing the project extend beyond the durational limit in 4 30 section 403.5, subsection 8. A municipality with a population 4 31 under fifteen thousand may, with the approval of the governing 4 32 bodies of all other affected taxing districts, extend the 4 33 division of revenue under section 403.19 for up to five years 4 34 if necessary to adequately fund the project. The portion of 4 35 the urban renewal area which is involved in a project under 5 1 this section shall not be subject to any subsequent division 5 2 of revenue under section 403.19. 5 3 Sec. 9. Section 403.22, Code 2001, is amended by adding 5 4 the following new subsection: 5 5 NEW SUBSECTION. 7. For purposes of this section and 5 6 section 403.17, subsection 10, "public improvements" does not 5 7 include improvements that would otherwise be chargeable 5 8 against the property as a special assessment as provided in 5 9 sections 384.37 through 384.79 or sections 331.485 through 5 10 331.491. This subsection does not apply to construction of 5 11 housing and residential development for low and moderate 5 12 income families. This subsection does not apply to 5 13 improvements to property assessed as commercial or industrial 5 14 property. 5 15 Sec. 10. Section 404.2, subsection 2, paragraph a, Code 5 16 2001, is amended to read as follows: 5 17 a. A legal description of the real estate forming the 5 18 boundaries of the proposed area along with a map depicting the 5 19 existing parcels of real estate. An urban revitalization area 5 20 shall not include any part of an area designated as an urban 5 21 renewal area pursuant to chapter 403 unless the urban renewal 5 22 area is designated in the resolution of necessity as a slum or 5 23 blighted area. 5 24 Sec. 11. APPLICABILITY. This Act applies to urban renewal 5 25 areas and urban revitalization areas established before, on, 5 26 or after the effective date of this Act. Section 6 of this 5 27 Act, amending section 403.19, applies to amounts certified for 5 28 purposes of urban renewal for taxes due and payable for the 5 29 fiscal year beginning July 1, 2002. Section 7 of this Act 5 30 applies to assessment years beginning on or after January 1, 5 31 2002. 5 32 EXPLANATION 5 33 This bill makes several changes to the urban renewal law. 5 34 The bill provides that if an urban renewal plan is amended 5 35 to add territory to an urban renewal area, the assessment year 6 1 for the territory added for purposes of tax increment 6 2 financing is the calendar year preceding the year in which the 6 3 amendment was adopted. 6 4 The bill limits economic development urban renewal areas to 6 5 20 years in duration. However, the duration of an urban 6 6 renewal area established before July 1, 2001, is 20 years from 6 7 the first year revenues are divided or the year in which 6 8 indebtedness is retired, whichever is later. 6 9 The bill provides that an area may not be redesignated an 6 10 urban renewal area until three years after the expiration of 6 11 the urban renewal area. The bill prohibits the location of 6 12 any part of an urban revitalization area in an urban renewal 6 13 area and provides that an area formerly designated as an urban 6 14 revitalization area may not be included in an urban renewal 6 15 area until three years after the expiration of the urban 6 16 revitalization property tax exemptions. 6 17 The bill further provides that as of July 1, 2001, an urban 6 18 revitalization tax exemption shall not be granted if the 6 19 qualified property is located in an urban renewal area. Those 6 20 granted before July 1, 2001, shall continue until their 6 21 expiration. 6 22 The bill provides that the rollback amount resulting from 6 23 the property tax assessment limitation shall be subtracted 6 24 from the increment value amount and the base value amount in 6 25 the proportion that the value of each bears to the total value 6 26 of the property. The bill also provides that if, because of 6 27 the application of the assessment limitation to the base value 6 28 and the incremental value, a municipality is not able to pay 6 29 amounts due on debt incurred prior to July 1, 2001, the county 6 30 treasurer is to pay over taxes collected from the base to the 6 31 extent that the valuation of the increment was lowered. This 6 32 portion of the bill applies to assessment years beginning on 6 33 or after January 1, 2002. 6 34 The bill provides that public improvements for residential 6 35 development in an economic development area paid for with tax 7 1 increment revenues shall not include improvements that are 7 2 otherwise payable by special assessment. However, this 7 3 restriction does not apply to residential development for low 7 4 and moderate income housing or to property assessed as 7 5 commercial or industrial. 7 6 The bill provides that a revitalization area not include 7 7 any area designated as an urban renewal area. Those granted 7 8 before July 1, 2001, shall continue until their expiration. 7 9 This applies to urban renewal areas whose resolution of 7 10 necessity designates the area as an economic development area. 7 11 The bill applies to urban renewal areas established before, 7 12 on, or after the effective date of the bill. 7 13 LSB 2646HV 79 7 14 sc/cls/14
Text: HF00678 Text: HF00680 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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