Text: HSB00037 Text: HSB00039 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15A.1, subsection 5, paragraph c, Code 1 2 2003, is amended by striking the paragraph. 1 3 Sec. 2. Section 15E.192, Code 2003, is amended to read as 1 4 follows: 1 5 15E.192 ENTERPRISE ZONES. 1 6 1. A county may create an economic development enterprise 1 7 zone as authorized in this division, subject to certification 1 8 by the department of economic development, by designating up 1 9 to one percent of the county area for that purpose.An1 10eligible county containing a city whose boundaries extend into1 11an adjacent county may establish an enterprise zone in an area1 12of the city located in the adjacent county if the adjacent1 13county's board of supervisors adopts a resolution approving1 14the establishment of the enterprise zone in the city and the1 15two counties enter into an agreement pursuant to chapter 28E1 16regarding the establishment of the enterprise zone.A county 1 17 may establish more than one enterprise zone. 1 18 2. A citywith a population of twenty-four thousand or1 19more, as shown by the 2000 certified federal census,may 1 20 create an economic development enterprise zone as authorized 1 21 in this division, subject to certification by the department 1 22 of economic development, by designating one or more contiguous 1 23 census tracts, as determined in the most recent federal 1 24 census, or designating other geographic units approved by the 1 25 department of economic development for that purpose. If there 1 26 is an area in the city which meets the requirements for 1 27 eligibility for an urban or rural enterprise community under 1 28 Title XIII of the federal Omnibus Budget Reconciliation Act of 1 29 1993, such area shall be designated by the state as an 1 30 economic development enterprise zone. The area meeting the 1 31 requirements for eligibility for an urban or rural enterprise 1 32 community shall not be included for the purpose of determining 1 33 the area limitation pursuant to subsection34.In creating1 34an enterprise zone, a city with a population of twenty-four1 35thousand or more, as shown by the 2000 certified federal2 1census, may designate as part of the area tracts or approved2 2geographic units located in a contiguous city if such tracts2 3or approved geographic units meet the criteria and the city2 4agrees to being included.The city may establish more than 2 5 one enterprise zone.Reference in this division to "city"2 6means a city with a population of twenty-four thousand or2 7more, as shown by the 2000 certified federal census.2 8 3. a.A county or city which meets the distress criteria2 9provided in section 15E.194, Code 2001, may apply to the2 10department for an area to be certified as an enterprise zone2 11at any time prior to July 1, 2003. However, the total amount2 12of land designated as enterprise zones under subsections 1 and2 132, and any other enterprise zones certified by the department,2 14excluding those approved pursuant to section 15E.194,2 15subsection 4, shall not exceed in the aggregate one percent of2 16the total county area.A city may designate a super blighted 2 17 enterprise zone eligible for incentives and assistance under 2 18 section 15E.196, subsection 3, subject to certification by the 2 19 department, when the designated area qualifies as a blighted 2 20 area, a high poverty and crime area, or a slum area. 2 21 b. As used in this section, unless the context otherwise 2 22 requires: 2 23 (1) "Blighted area" means an area of a municipality within 2 24 which the local governing body of the municipality determines 2 25 that the presence of a substantial number of slum, 2 26 deteriorated, or deteriorating structures, insanitary or 2 27 unsafe conditions, diversity of ownership, tax or special 2 28 assessment delinquency exceeding the fair value of the land, 2 29 defective or unusual conditions of title, or the existence of 2 30 conditions which endanger life or property by fire and other 2 31 causes, or any combination of these factors, substantially 2 32 impairs or arrests the sound growth of the municipality, 2 33 retards the provision of housing accommodations, or 2 34 constitutes an economic or social liability and is a menace to 2 35 the public health, safety, or welfare in the area's present 3 1 condition and use. A disaster area referred to in section 3 2 403.5, subsection 7, constitutes a "blighted area". "Blighted 3 3 area" does not include real property assessed as agricultural 3 4 property for purposes of property taxation. 3 5 (2) "High poverty and crime area" means an area of a 3 6 municipality within which the local governing body of the 3 7 municipality determines that the presence of a high poverty 3 8 and unemployment rate, a higher than average number of 3 9 incidences of crime, a higher than average number of drug- 3 10 related incidence of crime, extremely deteriorated physical 3 11 and structural conditions of property, at least fifty percent 3 12 of the structures below local building code requirements, or a 3 13 higher than average number of municipal violations and 3 14 nuisance violations, or any combination of these factors, 3 15 substantially impairs or arrests the sound growth of the 3 16 municipality, retards the provision of housing accommodations, 3 17 or constitutes an economic or social liability, and is a 3 18 menace to the public health, safety, or welfare in the area's 3 19 present condition and use. 3 20 (3) "Slum area" means an area of a municipality within 3 21 which the local governing body of the municipality determines 3 22 that there is a predominance of buildings or improvements, 3 23 whether residential or nonresidential, which by reason of 3 24 dilapidation, deterioration, age, or obsolescence, by reason 3 25 of inadequate provision for ventilation, light, air, 3 26 sanitation, or open spaces, by reason of high density of 3 27 population and overcrowding, by reason of the existence of 3 28 conditions that endanger life or property by fire and other 3 29 causes, or that by any combination of such factors, is 3 30 conducive to ill health, transmission of disease, infant 3 31 mortality, juvenile delinquency, or crime, and which is 3 32 detrimental to the public health, safety, morals, or welfare. 3 33 "Slum area" does not include real property assessed as 3 34 agricultural property for purposes of property taxation. 3 35b.4. a. An enterprise zone certified by the department 4 1 shall not be decertified or amended. 4 2c.b. A county or city may apply to the department for an 4 3 area to be certified as an enterprise zone at any time prior 4 4 to July 1, 2005. However, the total amount of land designated 4 5 as enterprise zones under subsections 1,and2, and 3, and any 4 6 other enterprise zones certified by the department, excluding4 7those approved pursuant to section 15E.194, subsection 4,4 8 shall not exceed in the aggregate one percent of the total 4 9 county area. 4 104.5. An enterprise zone designation shall remain in 4 11 effect for ten years following the date of certification. Any 4 12 state or local incentives or assistance that may be conferred 4 13 must be conferred before the designation expires. However, 4 14 the benefits of the incentive or assistance may continue 4 15 beyond the expiration. 4 16 6. Upon request by a city or county, the department shall 4 17 certify an eligible enterprise zone that meets the 4 18 requirements of subsection 1, 2, or 3. 4 19 Sec. 3. Section 15E.193B, subsection 1, Code 2003, is 4 20 amended to read as follows: 4 21 1. A housing business qualifying under this section is 4 22 eligible to receive incentives and assistance only as provided 4 23 in this section.An eligible housing business shall not4 24receive incentives or assistance for a home or multiple4 25dwelling unit built or rehabilitated in an enterprise zone4 26designated pursuant to section 15E.194, subsection 4.4 27 Sections 15E.193 and 15E.196 do not apply to an eligible 4 28 housing business qualifying under this section. 4 29 Sec. 4. Section 15E.195, subsections 1 and 2, Code 2003, 4 30 are amended to read as follows: 4 31 1. A countywhichthat designates an enterprise zone 4 32 pursuant to section15E.19415E.192, subsection 1, and in 4 33 which an eligible enterprise zone is certified shall establish 4 34 an enterprise zone commission to review applications from 4 35 qualified businesses located within or requesting to locate 5 1 within an enterprise zone designated pursuant to section 5 215E.19415E.192, subsection 1, to receive incentives or 5 3 assistance as provided in section 15E.196. The enterprise 5 4 zone commission shall also review applications from qualified 5 5 housing businesses requesting to receive incentives or 5 6 assistance as provided in section 15E.193B. The enterprise 5 7 zone commission shall also review applications from qualified 5 8 development businesses requesting to receive incentives or 5 9 assistance as provided in section 15E.193C. The commission 5 10 shall consist of nine members. Five of these members shall 5 11 consist of one representative of the board of supervisors, one 5 12 member with economic development expertise chosen by the 5 13 department of economic development, one representative of the 5 14 county zoning board, one member of the local community college 5 15 board of directors, and one representative of the local 5 16 workforce development center. These five members shall select 5 17 the remaining four members. If the enterprise zone consists 5 18 of an area meeting the requirements for eligibility for an 5 19 urban or rural enterprise community under Title XIII of the 5 20 federal Omnibus Budget Reconciliation Act of 1993, one of the 5 21 remaining four members shall be a representative of that 5 22 community. A county shall have only one enterprise zone 5 23 commission to review applications for incentives and 5 24 assistance for businesses located within or requesting to 5 25 locate within a certified enterprise zone designated pursuant 5 26 to section15E.19415E.192, subsection 1. 5 27 2. A citywith a population of twenty-four thousand or5 28more whichthat designates an enterprise zone pursuant to 5 29 section15E.19415E.192, subsection 2 or 3, and in which an 5 30 eligible enterprise zone is certified shall establish an 5 31 enterprise zone commission to review applications from 5 32 qualified businesses located within or requesting to locate 5 33 within an enterprise zone to receive incentives or assistance 5 34 as provided in section 15E.196. The enterprise zone 5 35 commission shall review applications from qualified housing 6 1 businesses requesting to receive incentives or assistance as 6 2 provided in section 15E.193B. The enterprise zone commission 6 3 shall also review applications from qualified development 6 4 businesses requesting to receive incentives or assistance as 6 5 provided in section 15E.193C. The commission shall consist of 6 6 nine members. Six of these members shall consist of one 6 7 representative of an international labor organization, one 6 8 member with economic development expertise chosen by the 6 9 department of economic development, one representative of the 6 10 city council, one member of the local community college board 6 11 of directors, one member of the city planning and zoning 6 12 commission, and one representative of the local workforce 6 13 development center. These six members shall select the 6 14 remaining three members. If the enterprise zone consists of 6 15 an area meeting the requirements for eligibility for an urban 6 16 enterprise community under Title XIII of the federal Omnibus 6 17 Budget Reconciliation Act of 1993, one of the remaining three 6 18 members shall be a representative of that community. If a 6 19 city contiguous to the city designating the enterprise zone is 6 20 included in an enterprise zone, a representative of the 6 21 contiguous city, chosen by the city council, shall be a member 6 22 of the commission. A city in which an eligible enterprise 6 23 zone is certified shall have only one enterprise zone 6 24 commission. If a city has established an enterprise zone 6 25 commission prior to July 1, 1998, the city may petition to the 6 26 department of economic development to change the structure of 6 27 the existing commission. 6 28 Sec. 5. Section 15E.196, Code 2003, is amended to read as 6 29 follows: 6 30 15E.196 INCENTIVES – ASSISTANCE. 6 31 1. For purposes of determining the incentives or 6 32 assistance provided in this section, "eligible business" means 6 33 a business which has been approved to receive incentives and 6 34 assistance by the department of economic development pursuant 6 35 to application as provided in section 15E.195. 7 1 2. The incentives and assistance provided under this 7 2divisionsubsection for businesses located in enterprise zones 7 3 designated pursuant to section 15E.192, subsection 1 or 2, 7 4 shall be for a period not to exceed ten years and shall 7 5 include all of the following: 7 61.a. (1) New jobs credit from withholding, as provided 7 7 in section 15.331. 7 8b. (1)(2) (a) As an alternative toparagraph "a"7 9 subparagraph (1), a business may provide a housing assistance 7 10 program in the form of down payment assistance or rental 7 11 assistance for employees in new jobs, as defined in section 7 12 260E.2, who buy or rent housing located within any certified 7 13 enterprise zone. A business establishing a housing assistance 7 14 program shall fund this program through a credit from 7 15 withholding based on the wages paid to the employees 7 16 participating in the housing assistance program. An amount 7 17 equal to one and one-half percent of the gross wages paid by 7 18 the employer to each employee participating in the housing 7 19 assistance program shall be credited from the payment made by 7 20 an employer pursuant to section 422.16. If the amount of the 7 21 withholding by the employer is less than one and one-half 7 22 percent of the gross wages paid to the employees, then the 7 23 employer shall receive a credit against other withholding 7 24 taxes due by the employer. The employer shall deposit the 7 25 amount of the credit quarterly into a housing assistance fund 7 26 created by the business out of which the business shall 7 27 provide employees enrolled in the housing assistance program 7 28 with down payment assistance or rental assistance. 7 29(2)(b) A business may enter into an agreement with the 7 30 county or city designating the enterprise zone pursuant to 7 31 section15E.19415E.192, subsection 1 or 2, to borrow initial 7 32 moneys to fund a housing assistance program. The county or 7 33 city may appropriate from the general fund of the county or 7 34 city for the assistance program an amount not to exceed an 7 35 amount estimated by the department of revenue and finance to 8 1 be equal to the total amount of credit from withholding for 8 2 employees determined by the business to be enrolled in the 8 3 program during the first two years. The business shall pay 8 4 the principal and interest on the loan out of moneys received 8 5 from the credit from withholding provided for in subparagraph 8 6(1)subdivision (a). The terms of the loan agreement shall 8 7 include the principal amount, the interest rate, the terms of 8 8 repayment, and the term of the loan. The terms of the loan 8 9 agreement shall not extend beyond the period during which the 8 10 enterprise zone is certified. 8 11(3)(c) The employer shall certify to the department of 8 12 revenue and finance that the credit from withholding is in 8 13 accordance with an agreement and shall provide other 8 14 information the department may require. 8 15(4)(d) An employee participating in the housing 8 16 assistance program will receive full credit for the amount 8 17 withheld as provided in section 422.16. 8 182.b. Sales, services, and use tax refund, as provided in 8 19 section 15.331A. 8 203.c. Investment tax credit, as provided in section 8 21 15.333. 8 224.d. Research activities credit, as provided in section 8 23 15.335. 8 245.e. The county or city for which an eligible enterprise 8 25 zone is certified may exempt from all property taxation all or 8 26 a portion of the value added to the property upon which an 8 27 eligible business locates or expands in an enterprise zone and 8 28 which is used in the operation of the eligible business. The 8 29 amount of value added for purposes of thissubsection8 30 paragraph shall be the amount of the increase in assessed 8 31 valuation of the property following the location or expansion 8 32 of the business in the enterprise zone. If an exemption 8 33 provided pursuant to thissubsectionparagraph is made 8 34 applicable to only a portion of the property within an 8 35 enterprise zone, the definition of that subset of eligible 9 1 property must be by uniform criteria which further some 9 2 planning objective established by the city or county 9 3 enterprise zone commission and approved by the eligible city 9 4 or county. The exemption may be allowed for a period not to 9 5 exceed ten years beginning the year the eligible business 9 6 enters into an agreement with the county or city to locate or 9 7 expand operations in an enterprise zone. 9 86.f. Insurance premium tax credit, as provided in section 9 9 15.333A. 9 107.g. A business eligible to receive incentives and 9 11 assistance described in thissectionsubsection and located in 9 12 a building for which incentives and assistance are or have 9 13 been claimed by an approved development business under section 9 14 15E.193C is not eligible to receive the following incentives 9 15 and assistance: 9 16a.(1) An investment tax credit undersubsection 39 17 paragraph "c" for the portion of the investment tax credit 9 18 that is claimed on the purchase price of land or improvements 9 19 to real property by an approved development business pursuant 9 20 to section 15E.193C, subsection 7, paragraph "a". 9 21b.(2) Sales, services, and use tax refund under 9 22subsection 2paragraph "b" that is made pursuant to section 9 23 15E.193C, subsection 7, paragraph "b". 9 24c.(3) A property tax exemption undersubsection 59 25 paragraph "e" for improvements to real property that are 9 26 exempted from property taxation pursuant to section 15E.193C, 9 27 subsection 7, paragraph "c". 9 28 3. The incentives and assistance provided under this 9 29 subsection for businesses and taxpayers located in super 9 30 blighted enterprise zones designated pursuant to section 9 31 15E.192, subsection 3, shall be for a period not to exceed ten 9 32 years and shall include all of the following: 9 33 a. All residents within the super blighted enterprise zone 9 34 shall be exempt from paying personal income taxes under 9 35 chapter 422, division II. 10 1 b. A taxpayer with a business located in the super 10 2 blighted enterprise zone shall be exempt from corporate income 10 3 tax under chapter 422, division III, on the portion of net 10 4 income reasonably attributable to the trade or business or 10 5 sources within the super blighted enterprise zone. The method 10 6 of attributing net income received from within the enterprise 10 7 zone and net income received from outside the enterprise zone 10 8 shall be calculated in a manner similar to that used in 10 9 section 422.33, subsection 2. 10 10 A taxpayer with an office of a financial institution 10 11 located in the super blighted enterprise zone shall also be 10 12 exempt from the franchise tax in chapter 422, division V, on 10 13 the portion of the net income received through the business 10 14 activity in offices located in the super blighted enterprise 10 15 zone as determined by rules adopted by the department of 10 16 revenue and finance pursuant to section 422.65 regarding 10 17 allocation of the franchise tax. 10 18 c. All taxpayers owning property within the super blighted 10 19 enterprise zone shall be exempt from paying local property 10 20 taxes on the property located solely in the super blighted 10 21 enterprise zone as provided in section 427.1, subsection 34. 10 22 This incentive shall not be available to owners of residential 10 23 rental property located in the super blighted enterprise zone 10 24 in tax years in which the property is not in substantial 10 25 compliance with all applicable state and local zoning, 10 26 building, housing, and health laws, ordinances, or codes. 10 27 d. The gross receipts from the sale, furnishing, or 10 28 service of gas, electricity, water, and heat to persons in the 10 29 super blighted enterprise zone shall be exempt from the taxes 10 30 imposed under chapter 422, division IV, as provided in section 10 31 422.45, subsection 64. 10 32 e. A business located in the super blighted enterprise 10 33 zone shall be eligible to receive the new jobs credit from 10 34 withholding, as provided in section 15.331, and the sales, 10 35 services, and use tax refund, as provided in section 15.331A. 11 1 4. During the last three years that a taxpayer is eligible 11 2 for an exemption, refund, or credit described in subsection 3, 11 3 the exemption, refund, or credit shall be reduced by the 11 4 following percentages: 11 5 a. For the tax year that is two years before the final 11 6 year of designation as a super blighted enterprise zone, the 11 7 reduction shall be twenty-five percent. 11 8 b. For the tax year immediately preceding the final year 11 9 of designation as a super blighted enterprise zone, the 11 10 reduction shall be fifty percent. 11 11 c. For the tax year that is the final year of designation 11 12 as a super blighted enterprise zone, the reduction shall be 11 13 seventy-five percent. 11 14 5. The following exceptions shall apply to the incentives 11 15 and assistance allowed under subsection 3: 11 16 a. A taxpayer shall not be eligible during any tax year in 11 17 which the taxpayer is delinquent in paying any federal, state, 11 18 or local taxes. 11 19 b. A taxpayer shall not be eligible during any tax year in 11 20 which the taxpayer owns residential rental property within the 11 21 super blighted enterprise zone that is not in substantial 11 22 compliance with all applicable state and local zoning, 11 23 building, and housing laws, ordinances, or codes. 11 24 c. An individual who is a resident of a super blighted 11 25 enterprise zone is eligible only until the department of 11 26 revenue and finance determines that the aggregate state and 11 27 local tax revenue foregone as a result of all exemptions, 11 28 refunds, or credits granted under subsection 3 to that 11 29 individual reaches ten million dollars. 11 30 d. A business located outside a super blighted enterprise 11 31 zone designated pursuant to section 15E.192, subsection 3, 11 32 that relocates into such an enterprise zone shall not receive 11 33 the incentives and assistance granted under subsection 3 of 11 34 this section unless the governing body of the political 11 35 subdivision in which the business is located approves the 12 1 relocation of the business. 12 2 e. If a business relocates more than twenty-five full-time 12 3 equivalent jobs from one or more locations outside a super 12 4 blighted enterprise zone designated pursuant to section 12 5 15E.192, subsection 3, to a location within such a super 12 6 blighted enterprise zone, the business shall notify the 12 7 department of economic development and the political 12 8 subdivision from which the jobs are being relocated of the 12 9 relocation. The business is not eligible for incentives and 12 10 assistance granted under subsection 3 of this section if the 12 11 political subdivision from which the jobs are being relocated 12 12 adopts a resolution objecting to the relocation of the jobs 12 13 within sixty days after the notification by the business. The 12 14 business becomes eligible sixty days after the notification if 12 15 such a resolution is not adopted or if an objection is 12 16 rescinded by a subsequent resolution. A political subdivision 12 17 that objects to the relocation of jobs shall file a copy of 12 18 all resolutions of objections and recision with the department 12 19 of revenue and finance, the department of economic 12 20 development, and the political subdivision where the super 12 21 blighted enterprise zone is located. 12 22 Sec. 6. Section 422.45, Code 2003, is amended by adding 12 23 the following new subsection: 12 24 NEW SUBSECTION. 64. The gross receipts from the sale, 12 25 furnishing, or service of gas, electricity, water, or heat to 12 26 persons located in a super blighted enterprise zone designated 12 27 pursuant to section 15E.192, subsection 3, for the duration of 12 28 the enterprise zone designation. 12 29 Sec. 7. Section 427.1, Code 2003, is amended by adding the 12 30 following new subsection: 12 31 NEW SUBSECTION. 34. ENTERPRISE ZONES. The property 12 32 located solely in a super blighted enterprise zone designated 12 33 pursuant to section 15E.192, subsection 3, for the duration of 12 34 the enterprise zone designation. 12 35 Sec. 8. 2002 Iowa Acts, chapter 1145, sections 7 and 10, 13 1 are amended to read as follows: 13 2SEC. 7. Section 15E.192, subsection 4, paragraph a, Code13 32003, is amended by striking the paragraph.13 4 SEC. 10. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 13 51.Section 4 of this Act, amending section 15E.193C, 13 6 subsections 2, 5, and 10, Code 2001, being deemed of immediate 13 7 importance, takes effect April 30, 2002, and, if approved by 13 8 the governor after April 30, 2002, shall apply retroactively 13 9 to April 30, 2002. 13 102. Section 7 of this Act, striking section 15E.192,13 11subsection 4, paragraph "a", Code 2003, takes effect July 1,13 122003.13 13 Sec. 9. Section 15E.194, Code 2003, is repealed. 13 14 Sec. 10. EFFECTIVE DATE AND APPLICABILITY PROVISIONS. 13 15 1. The sales tax incentive for utilities in section 6 of 13 16 this Act is applicable to all billing cycles beginning on or 13 17 after January 1, 2004. Section 6 of this Act shall not apply 13 18 to any billing cycle beginning after December 31, 2015. 13 19 2. Section 8 of this Act, amending 2002 Iowa Acts, chapter 13 20 1145, being deemed of immediate importance, takes effect upon 13 21 enactment. 13 22 EXPLANATION 13 23 This bill relates to the enterprise zone program 13 24 administered by the department of economic development. 13 25 Currently, under the program, a city or county meeting 13 26 certain distress criteria may designate enterprise zones which 13 27 are then certified by the department. The bill abolishes the 13 28 distress criteria and allows any city or county in the state 13 29 to designate enterprise zones provided that the total amount 13 30 of land designated as enterprise zones in the county does not 13 31 exceed, in the aggregate, 1 percent of the total county area. 13 32 The bill makes numerous conforming amendments and provides an 13 33 immediate effective date for one of the conforming amendments. 13 34 The bill also allows a city to designate a new type of 13 35 enterprise zone called a "super blighted enterprise zone". A 14 1 city may designate a super blighted enterprise zone if the 14 2 designated area qualifies as a blighted area, a high poverty 14 3 and crime area, or a slum area, as defined in the bill. The 14 4 bill provides that taxpayers and businesses located in super 14 5 blighted enterprise zones qualify for incentives and 14 6 assistance different from the incentives and assistance 14 7 available to businesses in regular enterprise zones. 14 8 The bill provides that incentives and assistance for super 14 9 blighted enterprise zones include all of the following: 14 10 1. Personal income tax exemption for all taxpayers who are 14 11 residents within the super blighted enterprise zone. 14 12 2. Corporate income tax and franchise tax exemption for 14 13 any taxpayer with a business located in the super blighted 14 14 enterprise zone on the portion of the net income reasonably 14 15 attributable to the trade or business or sources within the 14 16 super blighted enterprise zone. 14 17 3. Property tax exemption for all taxpayers within the 14 18 super blighted enterprise zone for property located solely 14 19 within the super blighted enterprise zone. 14 20 4. Exemption from the tax imposed on the gross receipts 14 21 from the sale, furnishing, or service of gas, electricity, 14 22 water, and heat to persons in the super blighted enterprise 14 23 zone. 14 24 5. The new jobs credit from withholding and the sales, 14 25 services, and use tax refund for businesses located in the 14 26 super blighted enterprise zone. 14 27 The bill provides that the incentives and assistance for 14 28 super blighted enterprise zones shall be reduced by 25 percent 14 29 during the tax year two years before the final year of 14 30 designation, by 50 percent during the tax year immediately 14 31 preceding the final year of designation, and by 75 percent 14 32 during the final year of designation. 14 33 The bill provides a number of exceptions for incentives and 14 34 assistance for super blighted enterprise zones. The 14 35 exceptions include the following: 15 1 1. A taxpayer shall not be eligible during any tax years in 15 2 which the taxpayer is delinquent in paying any federal, state, 15 3 or local taxes. 15 4 2. A taxpayer shall not be eligible during any tax years 15 5 in which the taxpayer owns residential rental property located 15 6 within the super blighted enterprise zone that is not in 15 7 substantial compliance with all applicable state and local 15 8 zoning, building, and housing laws, ordinances, or codes. 15 9 3. An individual who is a resident of a super blighted 15 10 enterprise zone is eligible only until the department of 15 11 revenue and finance determines that the aggregate state and 15 12 local tax revenue foregone as a result of the incentives and 15 13 assistance to that individual reaches $10 million. 15 14 4. A business located outside a super blighted enterprise 15 15 zone that relocates into a super blighted enterprise zone 15 16 shall not receive the incentives and assistance unless the 15 17 governing body of the political subdivision in which the 15 18 business is located approves the relocation of the business. 15 19 5. If a business relocates more than 25 full-time 15 20 equivalent jobs from one or more locations outside a super 15 21 blighted enterprise zone to a location within a super blighted 15 22 enterprise zone, the business shall notify the department of 15 23 economic development and the political subdivision from which 15 24 the jobs are being relocated of the relocation. The bill 15 25 allows the political subdivision to block the availability of 15 26 super blighted enterprise zone incentives and assistance by 15 27 objecting to the relocation of jobs through a resolution. 15 28 The bill provides that the sales tax incentive for 15 29 utilities under the super blighted enterprise zone incentives 15 30 and assistance is applicable to all billing cycles beginning 15 31 on or after January 1, 2004, and is not applicable to any 15 32 billing cycle beginning after December 31, 2015. 15 33 LSB 1459HC 80 15 34 tm/pj/5
Text: HSB00037 Text: HSB00039 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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