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", the  The
  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 15    b.  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  Section 423B.10, Code 2009, is repealed.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