House Study Bill 521 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON HITE) A BILL FOR An Act relating to the division of certain school taxes 1 collected in urban renewal areas containing wind energy 2 conversion property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5368YC (1) 89 md/jh

H.F. _____ Section 1. Section 403.19, subsection 2, paragraph a, Code 1 2022, 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 , taxes for the payment of bonds and interest 17 of each taxing district, and taxes imposed under section 18 346.27, subsection 22 , related to joint county-city buildings 19 shall be collected against all taxable property within the 20 taxing district without limitation by the provisions of this 21 subsection . Additionally, for property taxes due and payable 22 in fiscal years beginning on or after July 1, 2023, if the 23 urban renewal area contains wind energy conversion property 24 that is subject to special valuation under section 427B.26, 25 foundation property taxes of a school district imposed under 26 section 257.3 shall be collected against all taxable property 27 within the urban renewal area without limitation by the 28 provisions of this subsection and when collected be paid into 29 the fund of the school district into which all other property 30 taxes are paid. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 Code section 403.19 authorizes municipalities to provide 35 -1- LSB 5368YC (1) 89 md/jh 1/ 2

H.F. _____ by ordinance for the division of property tax revenue (tax 1 increment financing) collected against property located within 2 an urban renewal area. This bill provides that for property 3 taxes due and payable in fiscal years beginning on or after 4 July 1, 2023, if the urban renewal area contains wind energy 5 conversion property that is subject to special valuation under 6 Code section 427B.26, foundation property taxes of a school 7 district imposed under Code section 257.3 shall not be subject 8 to the division of property tax revenue and shall instead be 9 paid to the school district. 10 -2- LSB 5368YC (1) 89 md/jh 2/ 2