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Senate File 536

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 403.19, subsection 2, Code 2001, is
  1  2 amended to read as follows:
  1  3    2.  That portion of the taxes each year in excess of such
  1  4 amount shall be allocated to and when collected be paid into a
  1  5 special fund of the municipality to pay the principal of and
  1  6 interest on loans, moneys advanced to, or indebtedness,
  1  7 whether funded, refunded, assumed, or otherwise, including
  1  8 bonds issued under the authority of section 403.9, subsection
  1  9 1, incurred by the municipality to finance or refinance, in
  1 10 whole or in part, an urban renewal project within the area,
  1 11 and to provide assistance for low and moderate income family
  1 12 housing as provided in section 403.22, except that taxes for
  1 13 the regular and voter-approved physical plant and equipment
  1 14 levy of a school district imposed pursuant to section 298.2
  1 15 and taxes for the payment of bonds and interest of each taxing
  1 16 district must be collected against all taxable property within
  1 17 the taxing district without limitation by the provisions of
  1 18 this subsection.  However, all or a portion of the taxes for
  1 19 the physical plant and equipment levy shall be paid by the
  1 20 school district to the municipality if the municipality
  1 21 auditor certifies to the school district by July 1 the amount
  1 22 of such levy that is necessary to pay the principal and
  1 23 interest on indebtedness incurred bonds issued by the
  1 24 municipality to finance an urban renewal project, which
  1 25 indebtedness was incurred bonds were issued before July 1,
  1 26 2000.  Indebtedness incurred to refund bonds issued prior to
  1 27 July 1, 2000, shall not be included in the certification.
  1 28 Such school district shall pay over the amount certified by
  1 29 November 1 and May 1 of the fiscal year following
  1 30 certification to the school district.  Unless and until the
  1 31 total assessed valuation of the taxable property in an urban
  1 32 renewal area exceeds the total assessed value of the taxable
  1 33 property in such area as shown by the last equalized
  1 34 assessment roll referred to in subsection 1, all of the taxes
  1 35 levied and collected upon the taxable property in the urban
  2  1 renewal area shall be paid into the funds for the respective
  2  2 taxing districts as taxes by or for the taxing districts in
  2  3 the same manner as all other property taxes.  When such loans,
  2  4 advances, indebtedness, and bonds, if any, and interest
  2  5 thereon, have been paid, all moneys thereafter received from
  2  6 taxes upon the taxable property in such urban renewal area
  2  7 shall be paid into the funds for the respective taxing
  2  8 districts in the same manner as taxes on all other property.
  2  9    Sec. 2.  Section 403.19, Code 2001, is amended by adding
  2 10 the following new subsection:
  2 11    NEW SUBSECTION.  7.  For any fiscal year, a municipality
  2 12 may certify to the county auditor for physical plant and
  2 13 equipment revenue necessary for payment of principal and
  2 14 interest on bonds issued prior to July 1, 2000, only if the
  2 15 municipality certified for such revenue for the fiscal year
  2 16 beginning July 1, 2000.  A municipality shall not certify to
  2 17 the county auditor for a school district more than the amount
  2 18 the municipality certified for the fiscal year beginning July
  2 19 1, 2000.  If for any fiscal year a municipality fails to
  2 20 certify to the county auditor for a school district by July 1
  2 21 the amount of physical plant and equipment revenue necessary
  2 22 for payment of principal and interest on such bonds, as
  2 23 provided in subsection 2, the school district is not required
  2 24 to pay over the revenue to the municipality.  If a school
  2 25 district and a municipality are unable to agree on the amount
  2 26 of physical plant and equipment revenue certified by the
  2 27 municipality for the fiscal year beginning July 1, 2001,
  2 28 either party may request that the state appeal board review
  2 29 and finally pass upon the amount that may be certified.  Such
  2 30 appeals must be presented in writing to the state appeal board
  2 31 no later than July 31 following certification.  The burden
  2 32 shall be on the municipality to prove that the physical plant
  2 33 and equipment levy revenue is necessary to pay principal and
  2 34 interest on bonds issued prior to July 1, 2000.  A final
  2 35 decision must be issued by the state appeal board no later
  3  1 than the following October 1.
  3  2    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  3  3 being deemed of immediate importance, takes effect upon
  3  4 enactment and applies to property taxes due and payable in
  3  5 fiscal years beginning on or after July 1, 2001.  
  3  6                           EXPLANATION
  3  7    This bill makes several changes to the law relating to
  3  8 school district physical plant and equipment levy (PPEL)
  3  9 property taxes collected in an urban renewal area.  The bill
  3 10 provides that a municipality may certify to the county auditor
  3 11 the amount of PPEL revenue needed for bonds rather than
  3 12 indebtedness.  Indebtedness incurred to refund bonds issued
  3 13 before July 1, 2000, shall not be included in the amount
  3 14 certified.  The bill requires the school district to pay over
  3 15 the PPEL revenue to the municipality by November 1 and May 1
  3 16 of the fiscal year following certification.  Current law
  3 17 requires that the revenue be paid over by November 1.
  3 18    The bill also provides that in subsequent years a
  3 19 municipality may only certify for PPEL revenue if the
  3 20 municipality had certified for PPEL revenue for the fiscal
  3 21 year beginning July 1, 2000.  A municipality shall not certify
  3 22 an amount more than it certified for the fiscal year beginning
  3 23 July 1, 2000.  If a municipality misses the certification
  3 24 deadline for a fiscal year it is not eligible to receive PPEL
  3 25 revenue from the school district.  If a school district and
  3 26 municipality do not agree on the amount of PPEL revenue a
  3 27 municipality may certify, either party may, by July 31,
  3 28 request that the state appeal board review and make a final
  3 29 decision on the amount that may be certified.  The burden is
  3 30 on the municipality to prove that it needs the revenue to pay
  3 31 on bonds issued prior to July 1, 2000.  The state appeal board
  3 32 must make its decision no later than the following October 1.
  3 33    The bill is effective upon enactment and applies to
  3 34 property taxes due and payable in fiscal years beginning on or
  3 35 after July 1, 2001.  
  4  1 LSB 3424SV 79
  4  2 sc/pj/5
     

Text: SF00535                           Text: SF00537
Text: SF00500 - SF00599                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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