House
File
656
-
Introduced
HOUSE
FILE
656
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
195)
A
BILL
FOR
An
Act
relating
to
Iowa’s
urban
renewal
law
by
excluding
the
1
school
foundation
property
tax
from
certain
divisions
of
2
tax
revenue
and
including
effective
date
and
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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656
Section
1.
Section
403.19,
subsection
2,
paragraph
a,
Code
1
2017,
is
amended
to
read
as
follows:
2
a.
That
portion
of
the
taxes
each
year
in
excess
of
such
3
amount
shall
be
allocated
to
and
when
collected
be
paid
into
a
4
special
fund
of
the
municipality
to
pay
the
principal
of
and
5
interest
on
loans,
moneys
advanced
to,
or
indebtedness,
whether
6
funded,
refunded,
assumed,
or
otherwise,
including
bonds
7
issued
under
the
authority
of
section
403.9,
subsection
1
,
8
incurred
by
the
municipality
to
finance
or
refinance,
in
whole
9
or
in
part,
an
urban
renewal
project
within
the
area,
and
to
10
provide
assistance
for
low
and
moderate
income
family
housing
11
as
provided
in
section
403.22
.
However,
except
as
provided
12
in
paragraph
“b”
,
taxes
for
the
regular
and
voter-approved
13
physical
plant
and
equipment
levy
of
a
school
district
imposed
14
pursuant
to
section
298.2
,
and
taxes
for
the
instructional
15
support
program
of
a
school
district
imposed
pursuant
to
16
section
257.19
,
foundation
property
taxes
of
a
school
district
17
imposed
under
section
257.3,
taxes
for
the
payment
of
bonds
18
and
interest
of
each
taxing
district,
and
taxes
imposed
under
19
section
346.27,
subsection
22
,
related
to
joint
county-city
20
buildings
shall
be
collected
against
all
taxable
property
21
within
the
taxing
district
without
limitation
by
the
provisions
22
of
this
subsection
.
23
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
24
immediate
importance,
takes
effect
upon
enactment.
25
Sec.
3.
APPLICABILITY.
This
Act
applies
to
property
taxes
26
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
27
2018,
that
are
levied
against
any
of
the
following:
28
1.
Property
located
in
an
urban
renewal
area
for
which
the
29
ordinance
providing
for
a
division
of
revenue
takes
effect
on
30
or
after
the
effective
date
of
this
Act.
31
2.
Property
annexed
or
otherwise
included
in
an
urban
32
renewal
area
after
the
effective
date
of
the
ordinance
33
providing
for
a
division
of
revenue
if
the
annexation
or
34
inclusion
occurs
on
or
after
the
effective
date
of
this
Act.
35
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656
EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
excludes
the
school
district
foundation
property
4
tax
imposed
under
Code
section
257.3
from
the
division
of
5
revenue
under
Code
section
403.19
(tax
increment
financing).
6
Under
the
bill,
the
foundation
property
tax
is
not
divided
7
and
paid
into
the
municipality’s
special
fund
for
the
payment
8
of
urban
renewal
indebtedness
but
instead
is
required
to
be
9
levied,
collected,
and
paid
to
the
school
district
in
the
same
10
manner
as
all
other
property
taxes.
11
Under
Iowa’s
urban
renewal
law,
“municipality”
includes
12
cities
and
counties.
In
addition,
by
operation
of
law,
the
13
bill
applies
to
divisions
of
revenue
adopted
by
a
community
14
college
under
Code
section
260E.4
and
rural
improvement
zones
15
under
Code
section
357H.9.
16
The
bill
takes
effect
upon
enactment.
The
bill
applies
17
to
property
taxes
due
and
payable
in
fiscal
years
beginning
18
on
or
after
July
1,
2018,
that
are
levied
against
any
of
the
19
following:
(1)
property
located
in
an
urban
renewal
area
20
for
which
the
ordinance
providing
for
a
division
of
revenue
21
takes
effect
on
or
after
the
effective
date
of
the
bill;
or
22
(2)
property
annexed
or
otherwise
included
in
an
urban
renewal
23
area
after
the
effective
date
of
the
ordinance
providing
for
a
24
division
of
revenue
if
the
annexation
or
inclusion
occurs
on
or
25
after
the
effective
date
of
the
bill.
26
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