House File 2519
HOUSE FILE
BY FALLON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act prohibiting division of school foundation property taxes
2 for financing certain urban renewal plans and providing an
3 effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6173HH 80
6 sc/sh/8
PAG LIN
1 1 Section 1. Section 403.19, subsection 2, Code 2003, 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. However,
1 13 taxes for the regular and voter=approved physical plant and
1 14 equipment levy of a school district imposed pursuant to
1 15 section 298.2, and taxes for the payment of bonds and interest
1 16 of each taxing district must, and the foundation property tax,
1 17 but only as provided in subsection 8, shall be collected
1 18 against all taxable property within the taxing district
1 19 without limitation by the provisions of this subsection.
1 20 However, all or a portion of the taxes for the physical plant
1 21 and equipment levy shall be paid by the school district to the
1 22 municipality if the auditor certifies to the school district
1 23 by July 1 the amount of such levy that is necessary to pay the
1 24 principal and interest on bonds issued by the municipality to
1 25 finance an urban renewal project, which bonds were issued
1 26 before July 1, 2001. Indebtedness incurred to refund bonds
1 27 issued prior to July 1, 2001, shall not be included in the
1 28 certification. Such school district shall pay over the amount
1 29 certified by November 1 and May 1 of the fiscal year following
1 30 certification to the school district.
1 31 PARAGRAPH DIVIDED. Unless and until the total assessed
1 32 valuation of the taxable property in an urban renewal area
1 33 exceeds the total assessed value of the taxable property in
1 34 such area as shown by the last equalized assessment roll
1 35 referred to in subsection 1, all of the taxes levied and
2 1 collected upon the taxable property in the urban renewal area
2 2 shall be paid into the funds for the respective taxing
2 3 districts as taxes by or for the taxing districts in the same
2 4 manner as all other property taxes. When such loans,
2 5 advances, indebtedness, and bonds, if any, and interest
2 6 thereon, have been paid, all moneys thereafter received from
2 7 taxes upon the taxable property in such urban renewal area
2 8 shall be paid into the funds for the respective taxing
2 9 districts in the same manner as taxes on all other property.
2 10 Sec. 2. Section 403.19, Code 2003, is amended by adding
2 11 the following new subsection:
2 12 NEW SUBSECTION. 8. For urban renewal plans adopted after
2 13 the effective date of this Act, the school foundation property
2 14 tax imposed pursuant to section 257.3, subsection 1, shall not
2 15 be divided under this section but shall be paid to the school
2 16 district.
2 17 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
2 18 immediate importance, takes effect upon enactment.
2 19 EXPLANATION
2 20 This bill provides that for urban renewal plans adopted
2 21 after the effective date of the bill, school foundation
2 22 property taxes will not be divided and made available to the
2 23 municipality for tax increment financing but will be paid to
2 24 the school district.
2 25 The bill takes effect upon enactment.
2 26 LSB 6173HH 80
2 27 sc/sh/8