Senate File 511 - Introduced SENATE FILE 511 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 1159) A BILL FOR An Act relating to Iowa’s urban renewal law and urban 1 revitalization law by establishing provisions governing 2 certain property used for gaming, and including effective 3 date, applicability, and retroactive applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2676SV (3) 91 jm/md

S.F. 511 Section 1. Section 403.5, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6A. An urban renewal plan adopted or 3 amended before, on, or after the effective date of this Act 4 shall not include an urban renewal project related to property 5 owned and operated by a licensee under chapter 99F first issued 6 a license on or after January 1, 2025, property operated by 7 a nonprofit that directly benefits the property of such a 8 licensee, or commercial property that directly benefits such 9 a licensee. 10 Sec. 2. Section 403.19, subsection 2, paragraph a, Code 11 2025, is amended to read as follows: 12 a. That portion of the taxes each year in excess of such 13 amount shall be allocated to and when collected be paid into a 14 special fund of the municipality to pay the principal of and 15 interest on loans, moneys advanced to, or indebtedness, whether 16 funded, refunded, assumed, or otherwise, including bonds 17 issued under the authority of section 403.9, subsection 1 , 18 incurred by the municipality to finance or refinance, in whole 19 or in part, an urban renewal project within the area, and to 20 provide assistance for low and moderate income family housing 21 as provided in section 403.22 . However, except as provided 22 in paragraph “b” , taxes for the regular and voter-approved 23 physical plant and equipment levy of a school district imposed 24 pursuant to section 298.2 and taxes for the instructional 25 support program of a school district imposed pursuant to 26 section 257.19 , taxes for the payment of bonds and interest of 27 each taxing district, taxes levied against property owned and 28 operated by a licensee first issued a license under chapter 99F 29 on or after January 1, 2025, property operated by a nonprofit 30 that directly benefits the property of such a licensee, or 31 commercial property that directly benefits such a licensee, 32 and taxes imposed under section 346.27, subsection 22 , related 33 to joint county-city buildings shall be collected against all 34 taxable property within the taxing district without limitation 35 -1- LSB 2676SV (3) 91 jm/md 1/ 4

S.F. 511 by the provisions of this subsection . 1 Sec. 3. Section 404.1, Code 2025, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 6. An area that does not include property 4 owned and operated by a licensee under chapter 99F first issued 5 a license on or after January 1, 2025, property operated by 6 a nonprofit that directly benefits the property of such a 7 licensee, or commercial property that directly benefits such 8 a licensee. 9 Sec. 4. NEW SECTION . 404.3E Exemptions for gambling. 10 For assessment years beginning on or after January 1, 2025, 11 an exemption authorized under this chapter for revitalization 12 areas established under this chapter before, on, or after the 13 effective date of this section, shall not apply to any property 14 owned and operated by a licensee under chapter 99F first issued 15 a license on or after January 1, 2025, property operated by 16 a nonprofit that directly benefits the property of such a 17 licensee, or commercial property that directly benefits such 18 a licensee. 19 Sec. 5. Section 423B.10, subsection 2, Code 2025, is amended 20 by adding the following new paragraph: 21 NEW PARAGRAPH . c. Increased revenues under this section 22 shall not be used for any purpose related to property owned and 23 operated by a licensee under chapter 99F first issued a license 24 on or after January 1, 2025, property operated by a nonprofit 25 that directly benefits the property of such a licensee, or 26 commercial property that directly benefits such a licensee. 27 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 28 importance, takes effect upon enactment. 29 Sec. 7. RETROACTIVE APPLICABILITY. The following applies 30 retroactively to assessment years beginning on or after January 31 1, 2025: 32 The section of this Act enacting section 404.3E. 33 Sec. 8. APPLICABILITY. The following applies to property 34 taxes due and payable in fiscal years beginning on or after 35 -2- LSB 2676SV (3) 91 jm/md 2/ 4

S.F. 511 July 1, 2025: 1 The section of this Act amending section 403.19. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill relates to Iowa’s urban renewal and urban 6 revitalization laws. 7 The bill prohibits an urban renewal plan adopted before, 8 on, or after the effective date of the bill, to include an 9 urban renewal project related to property owned and operated by 10 a licensee under Code chapter 99F (gambling games and sports 11 wagering) first issued a license on or after January 1, 2025, 12 or other specified property that directly benefits such a 13 licensee. 14 The bill excludes from the division of revenue (tax 15 increment financing) taxes levied against property owned and 16 operated by a licensee under Code chapter 99F first issued a 17 license on or after January 1, 2025, or upon property that 18 directly benefits such a licensee. 19 The bill excludes tax exemptions for urban revitalization 20 for property owned and operated by a licensee under Code 21 chapter 99F first issued a license on or after January 1, 22 2025, or property that directly benefits such a licensee, 23 and prohibits such property from being included in an urban 24 revitalization area. 25 The bill excludes the funding of urban renewal projects 26 with local option taxes for property owned and operated by a 27 licensee under Code chapter 99F first issued a license on or 28 after January 1, 2025, or property that directly benefits such 29 a licensee. 30 The bill takes effect upon enactment. The bill applies 31 retroactively to assessment years beginning on or after 32 January 1, 2025, for prohibitions on urban revitalization tax 33 exemptions. The section of the bill amending Code section 34 403.19 applies to property tax due and payable in fiscal years 35 -3- LSB 2676SV (3) 91 jm/md 3/ 4