House
Study
Bill
194
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
HEIN)
A
BILL
FOR
An
Act
relating
to
Iowa’s
urban
renewal
law
by
modifying
the
1
methodology
for
calculating
the
amount
of
divided
revenues
2
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
260E.4,
Code
2021,
is
amended
to
read
as
1
follows:
2
260E.4
Incremental
property
taxes.
3
If
an
agreement
provides
that
all
or
part
of
program
costs
4
are
to
be
paid
for
by
incremental
property
taxes,
the
board
5
of
directors
shall
provide
by
resolution
that
taxes
levied
6
on
the
employer’s
taxable
business
property,
where
new
jobs
7
are
created
as
a
result
of
a
project,
each
year
by
or
for
8
the
benefit
of
the
state,
city,
county,
school
district,
9
or
other
taxing
district
after
the
effective
date
of
the
10
resolution
shall
be
divided
as
provided
in
section
403.19,
11
subsections
1
and
2
,
in
the
same
manner
as
if
the
employer’s
12
business
property,
where
new
jobs
are
created
as
a
result
of
a
13
project,
was
taxable
property
in
an
urban
renewal
project
and
14
the
resolution
was
an
ordinance
within
the
meaning
of
those
15
subsections.
The
taxes
received
by
the
board
of
directors
16
shall
be
allocated
to
and
when
collected
be
paid
into
a
special
17
fund
of
the
community
college
and
may
be
irrevocably
pledged
18
by
the
community
college
to
pay
the
principal
of
and
interest
19
on
the
certificates
issued
by
the
community
college
to
finance
20
or
refinance,
in
whole
or
in
part,
the
project.
However,
21
with
respect
to
any
urban
renewal
project
as
to
which
an
22
ordinance
is
in
effect
under
section
403.19
,
the
collection
23
of
incremental
property
taxes
authorized
by
this
chapter
are
24
suspended
in
favor
of
collection
of
incremental
taxes
under
25
section
403.19
.
As
used
in
this
section
,
“taxes”
includes,
but
26
is
not
limited
to,
all
levies
on
an
ad
valorem
basis
upon
land
27
or
real
property
of
the
employer’s
business,
where
new
jobs
28
are
created
as
a
result
of
a
project.
The
urban
renewal
area
29
duration
limitations
under
section
403.18A
and
the
limitations
30
on
the
duration
of
ordinances
under
section
403.19,
subsection
31
3A,
shall
not
apply
to
resolutions
adopted
under
this
section.
32
Sec.
2.
Section
357H.9,
subsection
1,
Code
2021,
is
amended
33
by
adding
the
following
new
paragraph:
34
NEW
PARAGRAPH
.
0f.
The
urban
renewal
area
duration
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limitations
under
section
403.18A
and
the
limitations
on
the
1
duration
of
ordinances
under
section
403.19,
subsection
3A,
2
shall
not
apply
to
rural
improvement
zones
established
under
3
this
chapter
and
resolutions
adopted
under
this
section.
4
Sec.
3.
NEW
SECTION
.
403.18A
Urban
renewal
area
and
5
division
of
revenue
limitations.
6
1.
An
urban
renewal
area
in
existence
on
the
effective
date
7
of
this
Act
for
which
an
ordinance
providing
for
a
division
of
8
revenue
under
section
403.19
was
adopted
before
the
effective
9
date
of
this
Act
and
that
is
not
limited
in
duration
under
10
either
section
403.17,
subsection
10,
or
section
403.22,
11
subsection
5,
shall
be
subject
to
the
assessed
value
adjustment
12
in
subsection
2.
13
2.
a.
For
each
such
urban
renewal
area
described
in
14
subsection
1,
the
urban
renewal
area,
including
all
applicable
15
urban
renewal
plans,
projects,
and
ordinances
providing
for
16
a
division
of
revenue,
shall
continue
in
effect
under
this
17
chapter,
until
such
time
that
the
urban
renewal
area
is
18
dissolved
by
the
municipality
or
until
the
urban
renewal
area
19
terminates
under
the
conditions
of
this
section,
whichever
20
occurs
first.
The
municipality
may
continue
to
incur
or
issue
21
additional
costs
or
indebtedness
for
such
urban
renewal
area,
22
including
loans,
advances,
and
bonds,
that
qualify
for
payment
23
from
the
special
fund
created
in
section
403.19
on
or
after
the
24
effective
date
of
this
Act
and
until
dissolution
or
termination
25
of
the
urban
renewal
area.
26
b.
Notwithstanding
any
provision
of
this
chapter
to
the
27
contrary,
for
fiscal
years
beginning
on
or
after
July
1,
2022,
28
when
calculating
a
division
of
revenue
for
an
urban
renewal
29
area
described
in
subsection
1
for
which
the
difference
between
30
the
year
of
the
assessment
roll
referred
to
in
section
403.19,
31
subsection
1,
and
the
year
of
the
assessment
roll
used
to
32
calculate
the
total
amount
of
property
taxes
in
the
urban
33
renewal
area
for
the
fiscal
year
in
which
the
taxes
are
due
34
and
payable,
exceeds
twenty
years,
the
assessed
value
of
the
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taxable
property
in
the
urban
renewal
area
used
to
calculate
1
the
amount
of
taxes
under
section
403.19,
subsection
1,
shall
2
be
increased
by
an
amount
equal
to
ten
percent
of
the
assessed
3
value
of
the
taxable
property
used
to
calculate
the
total
4
amount
of
property
taxes
in
the
urban
renewal
area
for
the
5
fiscal
year
in
which
taxes
are
due
and
payable.
Following
6
the
initial
adjustment
under
this
paragraph,
the
assessed
7
value
of
the
taxable
property
used
to
calculate
the
amount
of
8
taxes
under
section
403.19,
subsection
1,
shall
be
further
9
increased
for
each
subsequent
fiscal
year
by
an
amount
equal
to
10
ten
percent
of
the
assessed
value
of
the
taxable
property
in
11
the
urban
renewal
area
used
to
calculate
the
total
amount
of
12
property
taxes
in
the
urban
renewal
area
for
the
fiscal
year
in
13
which
taxes
are
due
and
payable.
The
adjustments
under
this
14
paragraph
shall
continue
until
such
time
as
operation
of
this
15
paragraph
“b”
would
cause
the
assessed
value
of
the
taxable
16
property
used
to
calculate
the
amount
of
taxes
under
section
17
403.19,
subsection
1,
to
exceed
the
assessed
value
of
the
18
taxable
property
in
the
urban
renewal
area
used
to
calculate
19
the
total
amount
of
property
taxes
in
the
urban
renewal
area
20
for
the
fiscal
year
in
which
the
taxes
are
due
and
payable,
21
or
the
tenth
fiscal
year
following
the
fiscal
year
for
which
22
the
first
adjustment
is
made
under
this
paragraph,
whichever
23
is
earlier.
At
that
time,
the
urban
renewal
area,
including
24
all
applicable
urban
renewal
plans,
projects,
and
ordinances
25
providing
for
a
division
of
revenue,
shall
terminate
and
be
of
26
no
further
force
and
effect.
27
3.
The
department
of
management
shall
adopt
rules
pursuant
28
to
chapter
17A
necessary
to
implement
and
administer
this
29
section.
30
Sec.
4.
Section
403.19,
Code
2021,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
3A.
Except
as
provided
in
section
403.22,
33
an
ordinance
providing
for
a
division
of
revenue
under
this
34
section
that
is
adopted
on
or
after
the
effective
date
of
35
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this
Act,
including
an
ordinance
providing
for
a
division
1
of
revenue
for
an
economic
development
area
under
section
2
403.17,
subsection
10,
shall
be
limited
to
twenty
years
from
3
the
calendar
year
following
the
calendar
year
in
which
the
4
municipality
first
certifies
to
the
county
auditor
the
amount
5
of
any
loans,
advances,
indebtedness,
or
bonds
that
qualify
for
6
payment
from
the
division
of
revenue
provided
in
this
section.
7
The
urban
renewal
area,
including
all
applicable
urban
renewal
8
plans,
projects,
and
ordinances,
shall
terminate
and
be
of
9
no
further
force
and
effect
following
the
twenty-year
period
10
provided
in
this
subsection.
11
Sec.
5.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
12
importance,
takes
effect
upon
enactment.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
Iowa’s
urban
renewal
law
by
providing
17
that
each
urban
renewal
area
in
existence
on
the
effective
date
18
of
the
bill
for
which
an
ordinance
providing
for
a
division
19
of
revenue
(tax
increment
financing)
was
adopted
before
the
20
effective
date
of
the
bill,
and
that
is
not
limited
in
duration
21
under
either
Code
section
403.17,
subsection
10
(20
years),
or
22
Code
section
403.22,
subsection
5
(10
years),
is
subject
to
23
the
assessed
value
adjustment
provided
for
in
the
bill.
Under
24
the
bill,
when
calculating
a
division
of
revenue
for
such
an
25
urban
renewal
area
for
a
fiscal
year
beginning
on
or
after
26
July
1,
2022,
and
for
which
the
difference
between
the
year
27
of
the
assessment
roll
referred
to
in
Code
section
403.19,
28
subsection
1
(establishing
a
base
assessed
value),
and
the
year
29
of
the
assessment
roll
used
to
calculate
the
total
amount
of
30
property
taxes
under
Code
section
403.19
for
the
fiscal
year
31
in
which
the
taxes
are
due
and
payable,
exceeds
20
years,
the
32
assessed
value
of
the
taxable
property
in
the
urban
renewal
33
area
used
to
calculate
the
amount
of
taxes
under
Code
section
34
403.19,
subsection
1,
shall
be
increased
by
an
amount
equal
to
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10
percent
of
the
assessed
value
used
to
calculate
the
total
1
amount
of
property
taxes
in
the
urban
renewal
area
for
the
2
applicable
fiscal
year.
Following
the
initial
adjustment,
the
3
assessed
value
of
the
taxable
property
used
to
calculate
the
4
amount
of
taxes
under
Code
section
403.19,
subsection
1,
shall
5
be
further
increased
for
each
subsequent
fiscal
year
by
an
6
amount
equal
to
10
percent
of
the
assessed
value
of
the
taxable
7
property
in
the
urban
renewal
area
used
to
calculate
the
total
8
amount
of
property
taxes
for
the
applicable
fiscal
year,
until
9
by
operation
of
the
bill
the
assessed
value
of
the
taxable
10
property
used
to
calculate
the
amount
of
taxes
under
Code
11
section
403.19,
subsection
1,
exceeds
the
assessed
value
of
the
12
taxable
property
in
the
urban
renewal
area
used
to
calculate
13
the
total
amount
of
property
taxes
in
the
urban
renewal
area
14
for
the
fiscal
year
in
which
the
taxes
are
due
and
payable,
or
15
the
10th
fiscal
year
following
the
fiscal
year
for
which
the
16
first
adjustment
is
made
under
the
bill,
whichever
is
earlier,
17
at
which
time
the
urban
renewal
area,
including
all
applicable
18
urban
renewal
plans,
projects,
and
ordinances
providing
for
a
19
division
of
revenue,
shall
terminate
and
be
of
no
further
force
20
and
effect.
21
The
bill
provides
that
except
for
certain
divisions
of
22
revenue
authorized
for
certain
housing
and
residential
23
development
under
Code
section
403.22,
an
ordinance
providing
24
for
a
division
of
revenue
under
Code
section
403.19
that
is
25
adopted
on
or
after
the
effective
date
of
the
bill
shall
be
26
limited
to
20
years
from
the
calendar
year
following
the
27
calendar
year
in
which
the
municipality
first
certifies
to
the
28
county
auditor
the
amount
of
any
loans,
advances,
indebtedness,
29
or
bonds
which
qualify
for
payment
from
the
division
of
revenue
30
provided
in
Code
section
403.19.
Under
the
bill,
the
urban
31
renewal
area,
including
all
applicable
urban
renewal
plans,
32
projects,
and
ordinances
shall
terminate
and
be
of
no
further
33
force
and
effect
following
the
20-year
period
provided
in
the
34
bill.
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The
bill
specifies
that
the
urban
renewal
duration
limits
1
under
new
Code
section
403.18A
and
the
limitations
on
the
2
duration
of
ordinances
providing
for
a
division
of
revenue
3
under
Code
section
403.19,
new
subsection
3A,
shall
not
apply
4
to
divisions
of
taxes
established
by
community
colleges
under
5
Code
chapter
260E
or
rural
improvement
zones
under
Code
chapter
6
357H.
7
The
bill
takes
effect
upon
enactment.
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