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House Study Bill 23

Bill Text

PAG LIN
  1  1    Section 1.  Section 403.19, subsection 1, paragraph a, Code
  1  2 2003, is amended to read as follows:
  1  3    a.  Unless otherwise provided in this section, that portion
  1  4 of the taxes which would be produced by the rate at which the
  1  5 tax is levied each year by or for each of the taxing districts
  1  6 upon the total sum of the assessed value of the taxable
  1  7 property in the urban renewal area, as shown on the assessment
  1  8 roll as of January 1 of the calendar year preceding the first
  1  9 calendar year in which the municipality certifies to the
  1 10 county auditor the amount of loans, advances, indebtedness, or
  1 11 bonds payable from the division of property tax revenue, as
  1 12 such assessed value is periodically adjusted pursuant to
  1 13 subsection 8, or on the assessment roll last equalized prior
  1 14 to the date of initial adoption of the urban renewal plan if
  1 15 the plan was adopted prior to July 1, 1972, shall be allocated
  1 16 to and when collected be paid into the fund for the respective
  1 17 taxing district as taxes by or for the taxing district into
  1 18 which all other property taxes are paid.  However, the
  1 19 municipality may choose to divide that portion of the taxes
  1 20 which would be produced by levying the municipality's portion
  1 21 of the total tax rate levied by or for the municipality upon
  1 22 the total sum of the assessed value of the taxable property in
  1 23 the urban renewal area, as shown on the assessment roll as of
  1 24 January 1 of the calendar year preceding the effective date of
  1 25 the ordinance and if the municipality so chooses, an affected
  1 26 taxing entity may allow a municipality to divide that portion
  1 27 of the taxes which would be produced by levying the affected
  1 28 taxing district's portion of the total tax rate levied by or
  1 29 for the affected taxing entity upon the total sum of the
  1 30 assessed value of the taxable property in the urban renewal
  1 31 area, as shown on the assessment roll as of January 1 of the
  1 32 calendar year preceding the effective date of the ordinance.
  1 33 This choice to divide a portion of the taxes shall not be
  1 34 construed to change the effective date of the division of
  1 35 property tax revenue with respect to an urban renewal plan in
  2  1 existence on July 1, 1994.
  2  2    Sec. 2.  Section 403.19, Code 2003, is amended by adding
  2  3 the following new subsection:
  2  4    NEW SUBSECTION.  8.  a.  The assessed value of taxable
  2  5 property in subsection 1 shall be adjusted by the assessor
  2  6 every eight years to remove the increase in total assessed
  2  7 value over the previous eight years except for the increase in
  2  8 value due solely to new construction, additions or
  2  9 improvements to existing structures, or remodeling of existing
  2 10 structures for which a building permit was required.
  2 11    b.  For any fiscal year, a municipality may certify to the
  2 12 county auditor the portion of the revenue collected due to the
  2 13 valuation adjustment amount determined pursuant to paragraph
  2 14 "a", which is necessary to pay principal and interest on bonds
  2 15 issued prior to July 1, 2003.  This portion of the revenue
  2 16 shall be transferred to the municipality from the tax
  2 17 collections of each taxing district in the urban renewal area
  2 18 in an amount proportionate to the taxing district's percentage
  2 19 of the total tax collected in the urban renewal area.  When
  2 20 determining the amount of the proportionate transfers of
  2 21 revenue, revenue collected by a school district from
  2 22 imposition of a physical plant and equipment levy, shall not
  2 23 be counted as part of the school district's revenue subject to
  2 24 transfer, except as otherwise provided in subsection 7.
  2 25    Sec. 3.  APPLICABILITY DATE.  This Act applies to urban
  2 26 renewal areas established by ordinance before, on, or after
  2 27 the effective date of this Act.  
  2 28                           EXPLANATION
  2 29    This bill requires the assessor, every eight years, to
  2 30 adjust the incremental property valuation of property located
  2 31 in an urban renewal area to remove increases in valuation from
  2 32 the increment.  The bill provides that the transferred
  2 33 valuation shall not include increases in value due solely to
  2 34 new construction, additions or improvements to existing
  2 35 structures, or remodeling of existing structures for which a
  3  1 building permit was required.
  3  2    The bill allows a municipality to receive revenue collected
  3  3 from the transferred valuation if the revenue is needed to pay
  3  4 principal and interest on urban renewal bonds issued before
  3  5 July 1, 2003.  The revenue subject to transfer does not
  3  6 include revenue from a school district's physical plant and
  3  7 equipment levy.  That revenue is subject to transfer elsewhere
  3  8 in the urban renewal chapter.
  3  9    The bill applies to urban renewal areas established by
  3 10 ordinance before, on, or after the effective date of this Act.  
  3 11 LSB 1276YC 80
  3 12 sc/pj/5.1
     

Text: HSB00022                          Text: HSB00024
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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