Senate Study Bill 1214
SENATE FILE
BY (PROPOSED COMMITTEE ON
LOCAL GOVERNMENT BILL BY
CHAIRPERSON QUIRMBACH)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the repeal of the authorization to use local
2 sales and services tax revenue to fund urban renewal projects
3 and including an effective date provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1910SC 83
6 md/sc/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 Section 423B.10, Code 2009, is repealed.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1 29 projects pursuant to section 423B.10, as repealed by this Act,
1 30 shall be deposited in the city's special fund created in
1 31 section 403.19, subsection 2, and shall be used to fund urban
1 32 renewal projects located in an urban renewal area.
1 33 Sec. 6. OBLIGATIONS OF CITIES. This Act shall not
1 34 relieve, impair, or otherwise alter the obligations of a city
1 35 relating to bonds issued pursuant to chapter 403 prior to the
2 1 effective date of this Act or contracts made prior to the
2 2 effective date of this Act in connection with an urban renewal
2 3 project.
2 4 Sec. 7. EFFECTIVE DATE. This Act, being deemed of
2 5 immediate importance, takes effect upon enactment.
2 6 EXPLANATION
2 7 This bill repeals Code section 423B.10, which provides that
2 8 a city with a local sales and services tax imposed by the
2 9 county may designate an amount of the increased tax revenues
2 10 attributable to retail establishments in an urban renewal area
2 11 to fund urban renewal projects in the area. The bill provides
2 12 that all local sales and services taxes received by a city
2 13 under Code chapter 423B prior to the effective date of the
2 14 bill that have been designated by a city by ordinance to fund
2 15 urban renewal projects pursuant to Code section 423B.10 shall
2 16 be deposited in the city's special fund and shall be used to
2 17 fund urban renewal projects. The bill also provides that a
2 18 city's obligations relating to bonds issued for urban renewal
2 19 purposes and contracts made in connection with an urban
2 20 renewal project prior to the effective date of the bill remain
2 21 unaltered.
2 22 This bill takes effect upon enactment.
2 23 LSB 1910SC 83
2 24 md/sc/14.1