HF 2082 (LSB 5368HV (2) 89)

HOUSE FILE 2082

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO HSB 521)

A BILL FOR

An Act relating to the division of certain school taxes collected in urban renewal areas containing wind energy conversion property.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 403.19, subsection 2, paragraph a, Code 2022, is amended to read as follows:
   a.  That portion of the taxes each year in excess of such amount shall be allocated to and when collected be paid into a special fund of the municipality to pay the principal of and interest on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, including bonds issued under the authority of section 403.9, subsection 1, incurred by the municipality to finance or refinance, in whole or in part, an urban renewal project within the area, and to provide assistance for low and moderate income family housing as provided in section 403.22. However, except as provided in paragraph “b”, taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to section 298.2 and taxes for the instructional support program of a school district imposed pursuant to section 257.19, taxes for the payment of bonds and interest of each taxing district, and taxes imposed under section 346.27, subsection 22, related to joint county-city buildings shall be collected against all taxable property within the taxing district without limitation by the provisions of this subsection.  Additionally, for property taxes due and payable in fiscal years beginning on or after July 1, 2023, if the portion of the urban renewal area that is subject to a division of revenue under this section contains wind energy conversion property that is subject to special valuation under section 427B.26, foundation property taxes of a school district imposed under section 257.3 shall be collected against all taxable property within that portion of the urban renewal area without limitation by the provisions of this subsection and when collected be paid into the fund of the school district into which all other property taxes are paid.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 403.19 authorizes municipalities to provide by ordinance for the division of property tax revenue (tax increment financing) collected against property located within an urban renewal area. This bill provides that for property taxes due and payable in fiscal years beginning on or after July 1, 2023, if the portion of the urban renewal area that is subject to a division of property tax revenue contains wind energy conversion property that is subject to special valuation under Code section 427B.26, foundation property taxes of a school district imposed under Code section 257.3 in that portion of the urban renewal area shall not be subject to the division of property tax revenue and shall instead be paid to the school district.