SSB 1159 (LSB 2676XC (4) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER)

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 and 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 on or after the effective date of this Act shall not include an urban renewal project related to property upon which a licensee, issued a license under chapter 99F on or after January 1, 2025, operates, and the urban renewal area shall not include the property upon which such a licensee operates.
    Sec. 2.  Section 403.6, subsection 19, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  Notwithstanding any other provision to the contrary, an assessment agreement entered into on or after the effective date of this Act involving property upon which a licensee, issued a license under chapter 99F on or after January 1, 2025, will operate, shall establish the minimum actual value of the land and completed improvements made on the land at an amount not less than the project cost presented to the state racing and gaming commission as part of the license approval.
    Sec. 3.  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 upon which a licensee, issued a license under chapter 99F on or after January 1, 2025, operates, 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. 4.  Section 404.3C, subsection 2, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  Notwithstanding any other provision to the contrary, an assessment agreement entered into on or after the effective date of this Act, involving property upon which a licensee, issued a license under chapter 99F on or after January 1, 2025, will operate, shall establish the minimum actual value of the land and completed improvements made on the land at an amount not less than the project cost presented to the state racing and gaming commission as part of the license approval.
    Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 6.  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 from including projects related to the property upon which a license has been issued on or after January 1, 2025, to a licensee to conduct gambling games pursuant to Code chapter 99F and prohibits the urban renewal area from including the property upon which such a licensee operates.
   The bill specifies that a minimum assessment agreement in either an urban renewal or urban revitalization area involving property upon which a licensee, issued a license to conduct gambling games pursuant to Code chapter 99F on or after January 1, 2025, will operate shall establish the minimum actual value at an amount not less than the project cost presented to the state racing and gaming commission as part of the license approval.
   The bill excludes from a division of revenue (tax increment financing) under Code section 403.19, property taxes levied against a property upon which a licensee, issued a license under Code chapter 99F on or after January 1, 2025, operates. 
   The bill takes effect upon enactment and the section of the bill amending Code section 403.19 applies to property taxes due and payable in fiscal years beginning on or after July 1, 2025.