Senate Study Bill 1211 SENATE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act repealing the authorization to use local sales and 2 services tax revenue to fund urban renewal projects and 3 including an effective date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1087XC 83 6 md/sc:mg/14 PAG LIN 1 1 Section 1. Section 423B.1, subsection 6, paragraph c, Code 1 2 2009, is amended by striking the paragraph. 1 3 Sec. 2. Section 423B.7, subsection 1, Code 2009, is 1 4 amended to read as follows: 1 5 1.a. Except as provided in paragraph "b", theThe 1 6 director shall credit the local sales and services tax 1 7 receipts and interest and penalties from a county=imposed tax 1 8 to the county's account in the local sales and services tax 1 9 fund and from a city=imposed tax under section 423B.1, 1 10 subsection 2, to the city's account in the local sales and 1 11 services tax fund. If the director is unable to determine 1 12 from which county any of the receipts were collected, those 1 13 receipts shall be allocated among the possible counties based 1 14 on allocation rules adopted by the director. 1 15b. Notwithstanding paragraph "a", the director shall 1 16 credit the designated amount of the increase in local sales 1 17 and services tax receipts, as computed in section 423B.10, 1 18 collected in an urban renewal area of an eligible city that 1 19 has adopted an ordinance pursuant to section 423B.10, 1 20 subsection 2, into a special city account in the local sales 1 21 and services tax fund.1 22 Sec. 3. Section 423B.7, subsection 6, Code 2009, is 1 23 amended by striking the subsection. 1 24 Sec. 4. Section 423B.10, Code 2009, is repealed. 1 25 Sec. 5. TAXES RECEIVED PRIOR TO EFFECTIVE DATE. All local 1 26 sales and services taxes received by a city under chapter 423B 1 27 prior to the effective date of this Act that have been 1 28 designated by a city by ordinance to fund urban renewal 1 29 projects pursuant to section 423B.10, as repealed under this 1 30 Act, shall be deposited in the city's general fund. 1 31 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 1 32 immediate importance, takes effect upon enactment. 1 33 EXPLANATION 1 34 This bill repeals Code section 423B.10, which provides that 1 35 a city with a local sales and services tax imposed by the 2 1 county may designate an amount of the increased tax revenues 2 2 attributable to retail establishments in an urban renewal area 2 3 to fund urban renewal projects in the area. The bill provides 2 4 that all local sales and services taxes received by a city 2 5 under Code chapter 423B prior to the effective date of the 2 6 bill that have been designated by a city by ordinance to fund 2 7 urban renewal projects pursuant to Code section 423B.10 shall 2 8 be deposited in the city's general fund. 2 9 This bill takes effect upon enactment. 2 10 LSB 1087XC 83 2 11 md/sc:mg/14