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Senate Study Bill 1270

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 certifies to the school district by July 1 the amount of such
  1 22 levy that is necessary to pay the principal and interest on
  1 23 indebtedness incurred bonds issued by the municipality to
  1 24 finance an urban renewal project, which indebtedness was
  1 25 incurred bonds were issued before July 1, 2000.  Indebtedness
  1 26 incurred to refund bonds issued prior to July 1, 2000, shall
  1 27 not be included in the certification.  Such school district
  1 28 shall pay over the amount certified by November 1 and May 1 of
  1 29 the fiscal year following certification to the school
  1 30 district.  Unless and until the total assessed valuation of
  1 31 the taxable property in an urban renewal area exceeds the
  1 32 total assessed value of the taxable property in such area as
  1 33 shown by the last equalized assessment roll referred to in
  1 34 subsection 1, all of the taxes levied and collected upon the
  1 35 taxable property in the urban renewal area shall be paid into
  2  1 the funds for the respective taxing districts as taxes by or
  2  2 for the taxing districts in the same manner as all other
  2  3 property taxes.  When such loans, advances, indebtedness, and
  2  4 bonds, if any, and interest thereon, have been paid, all
  2  5 moneys thereafter received from taxes upon the taxable
  2  6 property in such urban renewal area shall be paid into the
  2  7 funds for the respective taxing districts in the same manner
  2  8 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 only certify for physical plant and equipment revenue
  2 13 necessary for payment of principal and interest on bonds
  2 14 issued prior to July 1, 2000, if the municipality certified
  2 15 for such revenue for the fiscal year beginning July 1, 2000.
  2 16 A municipality shall not certify to a school district more
  2 17 than the amount the municipality certified for the fiscal year
  2 18 beginning July 1, 2000.  If for any fiscal year a municipality
  2 19 fails to certify to a school district by July 1 the amount of
  2 20 physical plant and equipment revenue necessary for payment of
  2 21 principal and interest on such bonds, as provided in
  2 22 subsection 2, the school district is not required to pay over
  2 23 the revenue to the municipality.  If a school district and a
  2 24 municipality are unable to agree on the amount of physical
  2 25 plant and equipment revenue certified by the municipality for
  2 26 the fiscal year beginning July 1, 2001, either party may
  2 27 request that the state appeal board review and finally pass
  2 28 upon the amount that may be certified.  Such appeals must be
  2 29 presented in writing to the state appeal board no later than
  2 30 July 31 following certification.  A final decision must be
  2 31 issued by the state appeal board no later than the following
  2 32 October 1.
  2 33    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  2 34 immediate importance, takes effect upon enactment and applies
  2 35 to property taxes due and payable in fiscal years beginning on
  3  1 or after July 1, 2001.  
  3  2                           EXPLANATION
  3  3    This bill makes several changes to the law relating to
  3  4 school district physical plant and equipment levy (PPEL)
  3  5 property taxes collected in an urban renewal area.  The bill
  3  6 provides that a municipality may certify to a school district
  3  7 the amount of PPEL revenue needed for bonds rather than
  3  8 indebtedness.  Indebtedness incurred to refund bonds issued
  3  9 before July 1, 2000, shall not be included in the amount
  3 10 certified.  The bill requires the school district to pay over
  3 11 the PPEL revenue to the municipality by November 1 and May 1
  3 12 of the fiscal year following certification.  Current law
  3 13 requires that the revenue be paid over by November 1.
  3 14    The bill also provides that in subsequent years a
  3 15 municipality may only certify an amount of PPEL revenues if
  3 16 the municipality had certified an amount of the revenue for
  3 17 the fiscal year beginning July 1, 2000.  A municipality shall
  3 18 not certify an amount more than it certified for the fiscal
  3 19 year beginning July 1, 2000.  If a municipality misses the
  3 20 certification deadline for a fiscal year it is not eligible to
  3 21 receive PPEL revenue from the school district.  If a school
  3 22 district and municipality do not agree on the amount of PPEL
  3 23 revenue a municipality may certify, either party may, by July
  3 24 31, request that the state appeal board review and make a
  3 25 final decision on the amount that may be certified.  The state
  3 26 appeal board must make its decision no later than the
  3 27 following October 1.
  3 28    The bill is effective upon enactment and applies to
  3 29 property taxes due and payable in fiscal years beginning on or
  3 30 after July 1, 2001.  
  3 31 LSB 3424SC 79
  3 32 sc/pj/5
     

Text: SSB01269                          Text: SSB01271
Text: SSB01200 - SSB01299               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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