SF 511 (LSB 2676SV (3) 91)

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 revitalization law by establishing provisions governing certain property used for gaming, and including effective date, applicability, and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 403.5, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  An urban renewal plan adopted or amended before, on, or after the effective date of this Act shall not include an urban renewal project related to property owned and operated by a licensee under chapter 99F first issued a license on or after January 1, 2025, property operated by a nonprofit that directly benefits the property of such a licensee, or commercial property that directly benefits such a licensee.
    Sec. 2.  Section 403.19, subsection 2, paragraph a, Code 2025, 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, taxes levied against property owned and operated by a licensee first issued a license under chapter 99F on or after January 1, 2025, property operated by a nonprofit that directly benefits the property of such a licensee, or commercial property that directly benefits such a licensee, 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.
    Sec. 3.  Section 404.1, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  An area that does not include property owned and operated by a licensee under chapter 99F first issued a license on or after January 1, 2025, property operated by a nonprofit that directly benefits the property of such a licensee, or commercial property that directly benefits such a licensee.
    Sec. 4.  NEW SECTION.  404.3E  Exemptions for gambling.
   For assessment years beginning on or after January 1, 2025, an exemption authorized under this chapter for revitalization areas established under this chapter before, on, or after the effective date of this section, shall not apply to any property owned and operated by a licensee under chapter 99F first issued a license on or after January 1, 2025, property operated by a nonprofit that directly benefits the property of such a licensee, or commercial property that directly benefits such a licensee.
    Sec. 5.  Section 423B.10, subsection 2, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  Increased revenues under this section shall not be used for any purpose related to property owned and operated by a licensee under chapter 99F first issued a license on or after January 1, 2025, property operated by a nonprofit that directly benefits the property of such a licensee, or commercial property that directly benefits such a licensee.
    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 7.  RETROACTIVE APPLICABILITY.  The following applies retroactively to assessment years beginning on or after January 1, 2025:
   The section of this Act enacting section 404.3E.
    Sec. 8.  APPLICABILITY.  The following applies to property taxes due and payable in fiscal years beginning on or after July 1, 2025: 
   The section of this Act amending section 403.19.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to Iowa’s urban renewal and urban revitalization laws.
   The bill prohibits an urban renewal plan adopted before, on, or after the effective date of the bill, to include an urban renewal project related to property owned and operated by a licensee under Code chapter 99F (gambling games and sports wagering) first issued a license on or after January 1, 2025, or other specified property that directly benefits such a licensee.
   The bill excludes from the division of revenue (tax increment financing) taxes levied against property owned and operated by a licensee under Code chapter 99F first issued a license on or after January 1, 2025, or upon property that directly benefits such a licensee.
   The bill excludes tax exemptions for urban revitalization for property owned and operated by a licensee under Code chapter 99F first issued a license on or after January 1, 2025, or property that directly benefits such a licensee, and prohibits such property from being included in an urban revitalization area.
   The bill excludes the funding of urban renewal projects with local option taxes for property owned and operated by a licensee under Code chapter 99F first issued a license on or after January 1, 2025, or property that directly benefits such a licensee.
   The bill takes effect upon enactment. The bill applies retroactively to assessment years beginning on or after January 1, 2025, for prohibitions on urban revitalization tax exemptions. The section of the bill amending Code section 403.19 applies to property tax due and payable in fiscal years beginning on or after July 1, 2025.