Bill Text: IA SF61 | 2011-2012 | 84th General Assembly | Introduced

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Bill Title: A bill for an act relating to the division of school foundation property taxes for purposes of urban renewal and including effective date provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [SF61 Detail]

Download: Iowa-2011-SF61-Introduced.html

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Senate File 61 - Introduced
SENATE FILE 61
BY HOGG
A BILL FOR
An Act relating to the division of school foundation property
taxes for purposes of urban renewal and including effective
date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 403.19, subsection 2, Code 2011, is
amended to read as follows:
2. 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 , except that . However,
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 payment of bonds and interest of
each taxing district must , and the foundation property tax
imposed pursuant to section 257.3, subsection 1, but only
as provided in subsection 8, shall be collected against all
taxable property within the taxing district without limitation
by the provisions of this subsection . However In addition , all
or a portion of the taxes for the physical plant and equipment
levy shall be paid by the school district to the municipality
if the auditor certifies to the school district by July 1 the
amount of such levy that is necessary to pay the principal and
interest on bonds issued by the municipality to finance an
urban renewal project, which bonds were issued before July 1,
2001. Indebtedness incurred to refund bonds issued prior to
July 1, 2001, shall not be included in the certification. Such
school district shall pay over the amount certified by November
1 and May 1 of the fiscal year following certification to the
school district. Unless and until the total assessed valuation
of the taxable property in an urban renewal area exceeds the
total assessed value of the taxable property in such area as
shown by the last equalized assessment roll referred to in
subsection 1 , all of the taxes levied and collected upon the
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taxable property in the urban renewal area shall be paid into
the funds for the respective taxing districts as taxes by
or for the taxing districts in the same manner as all other
property taxes. When such loans, advances, indebtedness, and
bonds, if any, and interest thereon, have been paid, all moneys
thereafter received from taxes upon the taxable property in
such urban renewal area shall be paid into the funds for the
respective taxing districts in the same manner as taxes on all
other property. In those instances where a school district
has entered into an agreement pursuant to section 279.64 for
sharing of school district taxes levied and collected from
valuation described in this subsection and released to the
school district, the school district shall transfer the taxes
as provided in the agreement.
Sec. 2. Section 403.19, Code 2011, is amended by adding the
following new subsection:
NEW SUBSECTION . 8. a. For urban renewal plans adopted
on or after the effective date of this Act, the foundation
property tax imposed pursuant to section 257.3, subsection
1, shall not be divided under this section but shall be paid
to the school district if the urban renewal plan includes
residential development in an area that is not designated a
slum or blighted area.
b. For urban renewal plans adopted before the effective date
of this Act that include residential development in an area
that is not designated a slum or blighted area, the foundation
property tax imposed pursuant to section 257.3, subsection 1,
shall not be divided under this section but shall be paid to
the school district, for fiscal years beginning on or after
July 1, 2021.
Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
immediate importance, takes effect upon enactment.
EXPLANATION
This bill provides that the $5.40 school foundation levy
shall not be divided for urban renewal purposes for urban
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S.F. 61
renewal plans adopted on or after the effective date of the
bill if the urban renewal plan includes residential development
in an area that is not designated a slum or blighted area.
Under the bill, such taxes shall instead be paid to the school
district. The bill further provides that, beginning with the
fiscal year beginning July 1, 2021, the $5.40 school foundation
levy shall not be divided for urban renewal purposes for urban
renewal plans adopted before the effective date of the bill if
the urban renewal plan includes residential development in an
area that is not designated a slum or blighted area, but will
be paid to the school district.
The bill takes effect upon enactment.
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