House File 856 - Introduced HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to incremental revenues collected in an economic 2 development urban renewal area and including an applicability 3 date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2723YH 82 6 sc/es/88 PAG LIN 1 1 Section 1. Section 403.19, subsections 2 and 3, Code 2007, 1 2 are 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 11andto provide assistance for low and moderate income family 1 12 housing as provided in section 403.22, and to provide 1 13 assistance to other urban renewal areas located within the 1 14 municipality as provided in section 403.22A, except that taxes 1 15 for the regular and voter=approved physical plant and 1 16 equipment levy of a school district imposed pursuant to 1 17 section 298.2 and taxes for the payment of bonds and interest 1 18 of each taxing district must be collected against all taxable 1 19 property within the taxing district without limitation by the 1 20 provisions of this subsection. However, all or a portion of 1 21 the taxes for the physical plant and equipment levy shall be 1 22 paid by the school district to the municipality if the auditor 1 23 certifies to the school district by July 1 the amount of such 1 24 levy that is necessary to pay the principal and interest on 1 25 bonds issued by the municipality to finance an urban renewal 1 26 project, which bonds were issued before July 1, 2001. 1 27 Indebtedness incurred to refund bonds issued prior to July 1, 1 28 2001, shall not be included in the certification. Such school 1 29 district shall pay over the amount certified by November 1 and 1 30 May 1 of the fiscal year following certification to the school 1 31 district. Unless and until the total assessed valuation of 1 32 the taxable property in an urban renewal area exceeds the 1 33 total assessed value of the taxable property in such area as 1 34 shown by the last equalized assessment roll referred to in 1 35 subsection 1, all of the taxes levied and collected upon the 2 1 taxable property in the urban renewal area shall be paid into 2 2 the funds for the respective taxing districts as taxes by or 2 3 for the taxing districts in the same manner as all other 2 4 property taxes. When such loans, advances, indebtedness, and 2 5 bonds, if any, and interest thereon, have been paid, all 2 6 moneys thereafter received from taxes upon the taxable 2 7 property in such urban renewal area shall be paid into the 2 8 funds for the respective taxing districts in the same manner 2 9 as taxes on all other property. In those instances where a 2 10 school district has entered into an agreement pursuant to 2 11 section 279.64 for sharing of school district taxes levied and 2 12 collected from valuation described in this subsection and 2 13 released to the school district, the school district shall 2 14 transfer the taxes as provided in the agreement. 2 15 3. The portion of taxes mentioned in subsection 2 and the 2 16 special fund into which they shall be paid, after the 2 17 allocations and payments required in sections 403.22 and 2 18 403.22A, may be irrevocably pledged by a municipality for the 2 19 payment of the principal and interest on loans, advances, 2 20 bonds issued under the authority of section 403.9, subsection 2 21 1, or indebtedness incurred by a municipality to finance or 2 22 refinance, in whole or in part, the urban renewal project 2 23 within the area. 2 24 Sec. 2. NEW SECTION. 403.22A ASSISTANCE REQUIREMENTS FOR 2 25 CERTAIN URBAN RENEWAL AREAS. 2 26 1. With respect to any urban renewal area established upon 2 27 the determination that the area is an economic development 2 28 area, revenues collected and deposited in the special fund 2 29 pursuant to section 403.19, subsection 2, shall first be 2 30 allocated as provided in this section. 2 31 2. An amount equal to ten percent of the revenues 2 32 collected each fiscal year in an economic development urban 2 33 renewal area that is located within a city and deposited in 2 34 the special fund pursuant to section 403.19, subsection 2, 2 35 shall be allocated and paid over to the special funds of each 3 1 urban renewal area established upon the determination that the 3 2 area is a slum or blighted area and located within the city. 3 3 Sec. 3. APPLICABILITY DATE. This Act applies to taxes due 3 4 and payable in fiscal years beginning on or after July 1, 3 5 2008. 3 6 EXPLANATION 3 7 This bill requires a municipality to allocate 10 percent of 3 8 the incremental revenues it collects in an economic 3 9 development urban renewal area to each slum and blighted urban 3 10 renewal area located in the city. 3 11 The bill applies to taxes due and payable in fiscal years 3 12 beginning on or after July 1, 2008. 3 13 LSB 2723YH 82 3 14 sc:nh/es/88