Bill Text: IA HF849 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to Iowa's urban renewal law by modifying the duration of ordinances providing for a division of revenue from taxation and including effective date provisions.(Formerly HSB 194.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-05-20 - Referred to Ways and Means. H.J. 1203. [HF849 Detail]
Download: Iowa-2021-HF849-Introduced.html
House
File
849
-
Introduced
HOUSE
FILE
849
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
194)
A
BILL
FOR
An
Act
relating
to
Iowa’s
urban
renewal
law
by
modifying
the
1
duration
of
ordinances
providing
for
a
division
of
revenue
2
from
taxation
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
are
28
created
as
a
result
of
a
project.
The
duration
limitations
for
29
ordinances
providing
for
a
division
of
revenue
under
section
30
403.18A
and
the
limitations
on
the
duration
of
ordinances
under
31
section
403.19,
subsection
3A,
shall
not
apply
to
resolutions
32
adopted
under
this
section.
33
Sec.
2.
Section
357H.9,
subsection
1,
Code
2021,
is
amended
34
by
adding
the
following
new
paragraph:
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NEW
PARAGRAPH
.
0f.
The
duration
limitations
for
ordinances
1
providing
for
a
division
of
revenue
under
section
403.18A
and
2
the
limitations
on
the
duration
of
ordinances
under
section
3
403.19,
subsection
3A,
shall
not
apply
to
resolutions
adopted
4
under
this
section.
5
Sec.
3.
NEW
SECTION
.
403.18A
Division
of
revenue
ordinance
6
limitations.
7
1.
An
urban
renewal
area
in
existence
on
the
effective
date
8
of
this
Act
for
which
an
ordinance
providing
for
a
division
of
9
revenue
under
section
403.19
was
adopted
before
the
effective
10
date
of
this
Act
and
that
is
not
limited
in
duration
under
11
either
section
403.17,
subsection
10,
or
section
403.22,
12
subsection
5,
shall
be
subject
to
the
ordinance
duration
13
limitation
in
subsection
2.
14
2.
Each
such
ordinance
described
in
subsection
1
shall
15
continue
in
effect
under
this
chapter,
until
such
time
that
16
the
ordinance
is
repealed
by
the
municipality
or
July
1,
2041,
17
whichever
occurs
first.
At
that
time,
the
ordinance
shall
18
terminate
and
be
of
no
further
force
or
effect.
19
Sec.
4.
Section
403.19,
subsection
1,
Code
2021,
is
amended
20
to
read
as
follows:
21
1.
a.
Unless
otherwise
provided
in
this
section
,
that
22
portion
of
the
taxes
which
would
be
produced
by
the
rate
23
at
which
the
tax
is
levied
each
year
by
or
for
each
of
the
24
taxing
districts
upon
the
total
sum
of
the
assessed
value
25
of
the
taxable
property
in
the
urban
renewal
area,
as
shown
26
on
the
assessment
roll
as
of
January
1
of
the
calendar
year
27
preceding
the
first
calendar
year
in
which
the
municipality
28
certifies
to
the
county
auditor
the
amount
of
loans,
advances,
29
indebtedness,
or
bonds
payable
from
the
division
of
property
30
tax
revenue
resulting
from
the
ordinance
,
or
,
for
division
31
of
revenue
ordinances
adopted
before
the
effective
date
of
32
this
Act,
on
the
assessment
roll
last
equalized
prior
to
the
33
date
of
initial
adoption
of
the
urban
renewal
plan
if
the
plan
34
was
adopted
prior
to
July
1,
1972,
shall
be
allocated
to
and
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when
collected
be
paid
into
the
fund
for
the
respective
taxing
1
district
as
taxes
by
or
for
the
taxing
district
into
which
2
all
other
property
taxes
are
paid.
However,
the
municipality
3
may
choose
to
divide
that
portion
of
the
taxes
which
would
be
4
produced
by
levying
the
municipality’s
portion
of
the
total
tax
5
rate
levied
by
or
for
the
municipality
upon
the
total
sum
of
6
the
assessed
value
of
the
taxable
property
in
the
urban
renewal
7
area,
as
shown
on
the
assessment
roll
as
of
January
1
of
the
8
calendar
year
preceding
the
effective
date
of
the
ordinance
and
9
if
the
municipality
so
chooses,
an
affected
taxing
entity
may
10
allow
a
municipality
to
divide
that
portion
of
the
taxes
which
11
would
be
produced
by
levying
the
affected
taxing
district’s
12
portion
of
the
total
tax
rate
levied
by
or
for
the
affected
13
taxing
entity
upon
the
total
sum
of
the
assessed
value
of
the
14
taxable
property
in
the
urban
renewal
area,
as
shown
on
the
15
assessment
roll
as
of
January
1
of
the
calendar
year
preceding
16
the
effective
date
of
the
ordinance.
This
choice
to
divide
17
a
portion
of
the
taxes
shall
not
be
construed
to
change
the
18
effective
date
of
the
division
of
property
tax
revenue
with
19
respect
to
an
urban
renewal
plan
in
existence
on
July
1,
1994.
20
b.
For
the
purpose
of
allocating
taxes
levied
by
or
for
21
any
taxing
district
which
did
not
include
the
territory
in
an
22
urban
renewal
area
on
the
effective
date
of
the
ordinance
or
23
initial
adoption
of
the
plan
,
but
to
which
the
territory
has
24
been
annexed
or
otherwise
included
after
the
effective
date,
25
the
assessment
roll
applicable
to
property
in
the
annexed
26
territory
as
of
January
1
of
the
calendar
year
preceding
the
27
effective
date
of
the
ordinance,
which
amends
the
plan
to
28
include
the
annexed
area,
shall
be
used
in
determining
the
29
assessed
valuation
of
the
taxable
property
in
the
annexed
area.
30
Sec.
5.
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
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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
6
for
payment
from
the
division
of
revenue
provided
in
this
7
section.
The
ordinance
shall
terminate
and
be
of
no
further
8
force
and
effect
following
the
twenty-year
period
provided
in
9
this
subsection.
10
Sec.
6.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
11
importance,
takes
effect
upon
enactment.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
relates
to
Iowa’s
urban
renewal
law
by
providing
16
that
each
urban
renewal
area
in
existence
on
the
effective
date
17
of
the
bill
for
which
an
ordinance
providing
for
a
division
18
of
revenue
(tax
increment
financing)
was
adopted
before
the
19
effective
date
of
the
bill,
and
that
is
not
limited
in
duration
20
under
either
Code
section
403.17(10)
(20
years),
or
Code
21
section
403.22(5)
(10
years),
is
subject
to
the
ordinance
22
duration
limitation
provided
for
in
the
bill.
The
bill
23
provides
that
each
such
ordinance
shall
continue
in
effect
24
under
Code
chapter
403,
until
such
time
that
the
ordinance
is
25
repealed
by
the
municipality
or
July
1,
2041,
whichever
occurs
26
first.
At
that
time,
the
ordinance
shall
terminate
and
be
of
27
no
further
force
or
effect.
28
The
bill
provides
that
except
for
certain
divisions
of
29
revenue
authorized
for
certain
housing
and
residential
30
development
under
Code
section
403.22,
an
ordinance
providing
31
for
a
division
of
revenue
under
Code
section
403.19
that
is
32
adopted
on
or
after
the
effective
date
of
the
bill
shall
be
33
limited
to
20
years
from
the
calendar
year
following
the
34
calendar
year
in
which
the
municipality
first
certifies
to
the
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county
auditor
the
amount
of
any
loans,
advances,
indebtedness,
1
or
bonds
which
qualify
for
payment
from
the
division
of
2
revenue
provided
in
Code
section
403.19.
Under
the
bill,
such
3
ordinances
shall
terminate
and
be
of
no
further
force
and
4
effect
following
the
20-year
period
provided
in
the
bill.
5
The
bill
specifies
that
the
ordinance
duration
limitations
6
under
new
Code
section
403.18A
and
Code
section
403.19,
7
new
subsection
3A,
shall
not
apply
to
divisions
of
taxes
8
established
by
community
colleges
under
Code
chapter
260E
or
9
rural
improvement
zones
under
Code
chapter
357H.
10
The
bill
takes
effect
upon
enactment.
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