House File 2229 - Introduced
HOUSE FILE
BY RANTS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act authorizing a school district to share its portion of
2 incremental property taxes with a contiguous school district.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5051YH 81
5 sc/je/5
PAG LIN
1 1 Section 1. NEW SECTION. 279.63 TAX=SHARING AGREEMENTS.
1 2 A school district may enter into an agreement under chapter
1 3 28E with a contiguous school district for the purpose of
1 4 sharing all or a percentage of school district taxes collected
1 5 from that portion of valuation described in section 403.19,
1 6 subsection 2, that is released by the municipality to the
1 7 school district.
1 8 Upon filing of a copy of the agreement with the auditor of
1 9 the county in which the urban renewal area is located, the
1 10 auditor shall provide for the transfer of taxes, as stated in
1 11 the agreement, for the period of time set forth in the
1 12 agreement.
1 13 Sec. 2. Section 403.19, subsection 2, Code 2005, is
1 14 amended to read as follows:
1 15 2. That portion of the taxes each year in excess of such
1 16 amount shall be allocated to and when collected be paid into a
1 17 special fund of the municipality to pay the principal of and
1 18 interest on loans, moneys advanced to, or indebtedness,
1 19 whether funded, refunded, assumed, or otherwise, including
1 20 bonds issued under the authority of section 403.9, subsection
1 21 1, incurred by the municipality to finance or refinance, in
1 22 whole or in part, an urban renewal project within the area,
1 23 and to provide assistance for low and moderate income family
1 24 housing as provided in section 403.22, except that taxes for
1 25 the regular and voter=approved physical plant and equipment
1 26 levy of a school district imposed pursuant to section 298.2
1 27 and taxes for the payment of bonds and interest of each taxing
1 28 district must be collected against all taxable property within
1 29 the taxing district without limitation by the provisions of
1 30 this subsection. However, all or a portion of the taxes for
1 31 the physical plant and equipment levy shall be paid by the
1 32 school district to the municipality if the auditor certifies
1 33 to the school district by July 1 the amount of such levy that
1 34 is necessary to pay the principal and interest on bonds issued
1 35 by the municipality to finance an urban renewal project, which
2 1 bonds were issued before July 1, 2001. Indebtedness incurred
2 2 to refund bonds issued prior to July 1, 2001, shall not be
2 3 included in the certification. Such school district shall pay
2 4 over the amount certified by November 1 and May 1 of the
2 5 fiscal year following certification to the school district.
2 6 Unless and until the total assessed valuation of the taxable
2 7 property in an urban renewal area exceeds the total assessed
2 8 value of the taxable property in such area as shown by the
2 9 last equalized assessment roll referred to in subsection 1,
2 10 all of the taxes levied and collected upon the taxable
2 11 property in the urban renewal area shall be paid into the
2 12 funds for the respective taxing districts as taxes by or for
2 13 the taxing districts in the same manner as all other property
2 14 taxes. When such loans, advances, indebtedness, and bonds, if
2 15 any, and interest thereon, have been paid, all moneys
2 16 thereafter received from taxes upon the taxable property in
2 17 such urban renewal area shall be paid into the funds for the
2 18 respective taxing districts in the same manner as taxes on all
2 19 other property. In those instances where a school district
2 20 has entered into an agreement pursuant to section 279.63 for
2 21 sharing of school district taxes levied and collected from
2 22 valuation described in this subsection and released to the
2 23 school district, the school district's portion shall be
2 24 allocated as provided in the agreement.
2 25 EXPLANATION
2 26 This bill allows a school district to enter into a Code
2 27 chapter 28E agreement with a contiguous school district to
2 28 share school property taxes collected from that portion of the
2 29 incremental value in an urban renewal area that has been
2 30 released to the school district by the municipality that
2 31 created the urban renewal area.
2 32 LSB 5051YH 81
2 33 sc:rj/je/5