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 11 and to 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