House File 2059 - Introduced
HOUSE FILE
BY PETERSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to residential property and property taxation
2 within a self=supported municipal improvement district and
3 providing that related notices may be sent by first class
4 mail.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 5465YH 81
7 eg/gg/14
PAG LIN
1 1 Section 1. Section 386.1, Code 2005, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 4A. "Neighborhood" means an area zoned,
1 4 in whole or at least in part, for residential use that may
1 5 include an area zoned for commercial or industrial use.
1 6 Sec. 2. Section 386.3, subsection 1, paragraph a, Code
1 7 2005, is amended to read as follows:
1 8 a. Be comprised of contiguous property wholly located
1 9 within the boundaries of the city. A self=supported municipal
1 10 improvement district shall be comprised only of property in
1 11 districts which are and one of the following:
1 12 (1) An area zoned for commercial or industrial uses and
1 13 properties within a use.
1 14 (2) A duly designated historic district.
1 15 (3) A neighborhood.
1 16 Sec. 3. Section 386.3, subsection 4, Code 2005, is amended
1 17 to read as follows:
1 18 4. Upon the receipt of the commission's final report the
1 19 council shall set a time and place for a meeting at which the
1 20 council proposes to take action for the establishment of the
1 21 district, and shall publish notice of the meeting as provided
1 22 in section 362.3, and the clerk shall send a copy of the
1 23 notice by certified first class mail not less than fifteen
1 24 days before the meeting to each owner of property within the
1 25 proposed district at the owner's address as shown by the
1 26 records of the county auditor. If a property is shown to be in
1 27 the name of more than one owner at the same mailing address, a
1 28 single notice may be mailed addressed to all owners at that
1 29 address. Failure to receive a mailed notice is not grounds for
1 30 objection to the council's taking any action authorized in
1 31 this chapter.
1 32 Sec. 4. Section 386.8, Code 2005, is amended to read as
1 33 follows:
1 34 386.8 OPERATION TAX.
1 35 A city may establish a self=supported improvement district
2 1 operation fund, and may certify taxes not to exceed the rate
2 2 limitation as established in the ordinance creating the
2 3 district, or any amendment thereto, each year to be levied for
2 4 the fund against all of the property in the district, for the
2 5 purpose of paying the administrative expenses of the district,
2 6 which may include but are not limited to administrative
2 7 personnel salaries, a separate administrative office, planning
2 8 costs including consultation fees, engineering fees,
2 9 architectural fees, and legal fees and all other expenses
2 10 reasonably associated with the administration of the district
2 11 and the fulfilling of the purposes of the district. The taxes
2 12 levied for this fund may also be used for the purpose of
2 13 paying maintenance expenses of improvements or self=
2 14 liquidating improvements for a specified length of time with
2 15 one or more options to renew if such is clearly stated in the
2 16 petition which requests the council to authorize construction
2 17 of the improvement or self=liquidating improvement, whether or
2 18 not such petition is combined with the petition requesting
2 19 creation of a district. Parcels Except for residential
2 20 property within a duly designated historic district, parcels
2 21 of property which are assessed as residential property for
2 22 property tax purposes and are located within a district
2 23 created prior to July 1, 2006, are exempt from the tax levied
2 24 under this section except residential properties within a duly
2 25 designated historic district until such property is added to
2 26 the district pursuant to section 386.4. A tax levied under
2 27 this section is not subject to the levy limitation in section
2 28 384.1.
2 29 Sec. 5. Section 386.9, Code 2005, is amended to read as
2 30 follows:
2 31 386.9 CAPITAL IMPROVEMENT TAX.
2 32 A city may establish a capital improvement fund for a
2 33 district and may certify taxes, not to exceed the rate
2 34 established by the ordinance creating the district, or any
2 35 subsequent amendment thereto, each year to be levied for the
3 1 fund against all of the property in the district, for the
3 2 purpose of accumulating moneys for the financing or payment of
3 3 a part or all of the costs of any improvement or self=
3 4 liquidating improvement. However Except for residential
3 5 property within a duly designated historic district, parcels
3 6 of property which are assessed as residential property for
3 7 property tax purposes and are located within a district
3 8 created prior to July 1, 2006, are exempt from the tax levied
3 9 under this section except residential properties within a duly
3 10 designated historic district until such property is added to
3 11 the district pursuant to section 386.4. A tax levied under
3 12 this section is not subject to the levy limitations in section
3 13 384.1 or 384.7.
3 14 Sec. 6. Section 386.10, Code 2005, is amended to read as
3 15 follows:
3 16 386.10 DEBT SERVICE TAX.
3 17 A city shall establish a self=supported municipal
3 18 improvement district debt service fund whenever any self=
3 19 supported municipal improvement district bonds are issued and
3 20 outstanding, other than revenue bonds, and shall certify taxes
3 21 to be levied against all of the property in the district for
3 22 the debt service fund in the amount necessary to pay interest
3 23 as it becomes due and the amount necessary to pay, or to
3 24 create a sinking fund to pay, the principal at maturity of all
3 25 self=supported municipal improvement district bonds as
3 26 authorized in section 386.11, issued by the city. However
3 27 Except for residential property within a duly designated
3 28 historic district, parcels of property which are assessed as
3 29 residential property for property tax purposes at the time of
3 30 the issuance of the bonds and are located within a district
3 31 created prior to July 1, 2006, are exempt from the tax levied
3 32 under this section until the parcels are no longer assessed as
3 33 residential property or until the residential properties are
3 34 designated as a part of an historic district such property is
3 35 added to the district pursuant to section 386.4.
4 1 EXPLANATION
4 2 Code chapter 386 currently allows a city to create a self=
4 3 supported municipal improvement district comprised of areas
4 4 zoned for commercial or industrial use and property within a
4 5 duly designated historic district. This bill allows the city
4 6 to create a district comprised of an area zoned, in whole or
4 7 at least in part, for residential use, known as a
4 8 neighborhood. Any combination of residential, commercial, or
4 9 industrial properties may comprise a district.
4 10 Currently, residential properties located within a district
4 11 comprised of commercial or industrial properties are exempt
4 12 from taxes levied under this Code chapter. This exemption
4 13 will continue for districts created prior to July 1, 2006,
4 14 until such residential properties are added to the district by
4 15 amendment pursuant to Code section 386.4.
4 16 Code chapter 386 requires the city to send notices of
4 17 meetings, to establish or amend a district, for example, to
4 18 each affected property owner by certified mail. The bill
4 19 provides that the notice be sent by first class mail.
4 20 LSB 5465YH 81
4 21 eg:rj/gg/14.1