Bill Text: IA HF135 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to the division of instructional support program property tax revenue for urban renewal purposes and including effective date and applicability provisions.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF135 Detail]
Download: Iowa-2011-HF135-Introduced.html
House
File
135
-
Introduced
HOUSE
FILE
135
BY
ISENHART
and
WILLEMS
A
BILL
FOR
An
Act
relating
to
the
division
of
instructional
support
1
program
property
tax
revenue
for
urban
renewal
purposes
and
2
including
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1098YH
(9)
84
md/sc
H.F.
135
Section
1.
Section
331.502,
Code
2011,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
42A.
Prepare
and
submit
the
report
required
3
under
section
403.19,
subsection
9
.
4
Sec.
2.
Section
403.19,
subsection
2,
Code
2011,
is
amended
5
to
read
as
follows:
6
2.
a.
That
portion
of
the
taxes
each
year
in
excess
of
such
7
amount
shall
be
allocated
to
and
when
collected
be
paid
into
a
8
special
fund
of
the
municipality
to
pay
the
principal
of
and
9
interest
on
loans,
moneys
advanced
to,
or
indebtedness,
whether
10
funded,
refunded,
assumed,
or
otherwise,
including
bonds
issued
11
under
the
authority
of
section
403.9,
subsection
1
,
incurred
12
by
the
municipality
to
finance
or
refinance,
in
whole
or
in
13
part,
an
urban
renewal
project
within
the
area,
and
to
provide
14
assistance
for
low
and
moderate
income
family
housing
as
15
provided
in
section
403.22
,
except
that
.
However,
except
as
16
provided
in
paragraph
“b”
,
taxes
for
the
instructional
support
17
program
of
a
school
district
imposed
pursuant
to
section
257.19
18
and
taxes
for
the
regular
and
voter-approved
physical
plant
and
19
equipment
levy
of
a
school
district
imposed
pursuant
to
section
20
298.2
and
taxes
for
the
payment
of
bonds
and
interest
of
each
21
taxing
district
must
be
collected
against
all
taxable
property
22
within
the
taxing
district
without
limitation
by
the
provisions
23
of
this
subsection
.
24
b.
(1)
However,
all
All
or
a
portion
of
the
taxes
for
25
the
physical
plant
and
equipment
levy
shall
be
paid
by
the
26
school
district
to
the
municipality
if
the
auditor
certifies
27
to
the
school
district
by
July
1
the
amount
of
such
levy
that
28
is
necessary
to
pay
the
principal
and
interest
on
bonds
issued
29
by
the
municipality
to
finance
an
urban
renewal
project,
which
30
bonds
were
issued
before
July
1,
2001.
Indebtedness
incurred
31
to
refund
bonds
issued
prior
to
July
1,
2001,
shall
not
be
32
included
in
the
certification.
Such
school
district
shall
pay
33
over
the
amount
certified
by
November
1
and
May
1
of
the
fiscal
34
year
following
certification
to
the
school
district.
35
-1-
LSB
1098YH
(9)
84
md/sc
1/
5
H.F.
135
(2)
(a)
All
or
a
portion
of
the
taxes
for
the
instructional
1
support
program
levy
of
a
school
district
shall
be
paid
by
the
2
school
district
to
the
municipality
if
the
auditor,
pursuant
3
to
subsection
8
,
certifies
to
the
school
district
by
July
1
4
the
amount
of
such
levy
that
is
necessary
to
pay
the
principal
5
and
interest
on
bonds
issued
or
other
indebtedness
incurred
by
6
the
municipality
to
finance
an
urban
renewal
project
that
was
7
approved
at
a
public
hearing
on
or
before
the
effective
date
8
of
this
Act,
if
the
urban
renewal
project
or
the
applicable
9
urban
renewal
plan
has
not
been
amended
following
such
approval
10
and
if
the
bonds
issued
or
indebtedness
incurred
has
not
been
11
refinanced
by
the
municipality.
Such
school
district
shall
pay
12
over
the
amount
certified
by
November
1
and
May
1
of
the
fiscal
13
year
following
certification
to
the
school
district.
14
(b)
In
lieu
of
payment
to
a
municipality
under
subparagraph
15
division
(a)
,
a
school
district
may
by
resolution
of
the
board
16
of
directors
of
the
school
district
approve
at
a
regular
17
meeting
of
the
board
of
directors
the
payment
of
all
or
a
18
portion
of
the
instructional
support
program
property
tax
19
revenue
excluded
under
paragraph
“a”
,
to
the
municipality
for
20
the
payment
of
principal
and
interest
on
bonds
issued
or
other
21
indebtedness
incurred
by
the
municipality
for
an
urban
renewal
22
project
approved
before,
on,
or
after
the
effective
date
of
23
this
Act.
24
c.
Unless
and
until
the
total
assessed
valuation
of
the
25
taxable
property
in
an
urban
renewal
area
exceeds
the
total
26
assessed
value
of
the
taxable
property
in
such
area
as
shown
by
27
the
last
equalized
assessment
roll
referred
to
in
subsection
1
,
28
all
of
the
taxes
levied
and
collected
upon
the
taxable
property
29
in
the
urban
renewal
area
shall
be
paid
into
the
funds
for
30
the
respective
taxing
districts
as
taxes
by
or
for
the
taxing
31
districts
in
the
same
manner
as
all
other
property
taxes.
32
When
such
loans,
advances,
indebtedness,
and
bonds,
if
any,
33
and
interest
thereon,
have
been
paid,
all
moneys
thereafter
34
received
from
taxes
upon
the
taxable
property
in
such
urban
35
-2-
LSB
1098YH
(9)
84
md/sc
2/
5
H.F.
135
renewal
area
shall
be
paid
into
the
funds
for
the
respective
1
taxing
districts
in
the
same
manner
as
taxes
on
all
other
2
property.
3
d.
In
those
instances
where
a
school
district
has
entered
4
into
an
agreement
pursuant
to
section
279.64
for
sharing
of
5
school
district
taxes
levied
and
collected
from
valuation
6
described
in
this
subsection
and
released
to
the
school
7
district,
the
school
district
shall
transfer
the
taxes
as
8
provided
in
the
agreement.
9
Sec.
3.
Section
403.19,
Code
2011,
is
amended
by
adding
the
10
following
new
subsections:
11
NEW
SUBSECTION
.
8.
For
any
fiscal
year,
a
municipality
12
may
certify
to
the
county
auditor
for
instructional
support
13
program
property
tax
revenue
necessary
for
payment
of
principal
14
and
interest
on
bonds
issued
or
other
indebtedness
incurred
15
for
an
urban
renewal
project
that
was
approved
at
a
public
16
hearing
on
or
before
the
effective
date
of
this
Act,
if
the
17
urban
renewal
project
or
the
applicable
urban
renewal
plan
18
has
not
been
amended
following
such
approval
and
if
the
bonds
19
issued
or
indebtedness
incurred
has
not
been
refinanced
by
the
20
municipality.
If
for
any
fiscal
year
a
municipality
fails
21
to
certify
to
the
county
auditor
by
July
1
the
amount
of
22
instructional
support
program
property
tax
revenue
necessary
23
for
payment
of
principal
and
interest
on
such
bonds,
as
24
provided
in
subsection
2
,
the
school
district
is
not
required
25
to
pay
over
the
revenue
to
the
municipality.
If
a
school
26
district
and
a
municipality
are
unable
to
agree
on
the
amount
27
of
instructional
support
program
property
tax
revenue
certified
28
by
the
municipality,
either
party
may
request
that
the
state
29
appeal
board
review
and
finally
pass
upon
the
amount
that
30
may
be
certified.
Such
appeals
must
be
presented
in
writing
31
to
the
state
appeal
board
no
later
than
July
31
following
32
certification.
The
burden
shall
be
on
the
municipality
to
33
prove
that
the
instructional
support
program
property
tax
34
revenue
is
necessary
to
pay
principal
and
interest
on
the
35
-3-
LSB
1098YH
(9)
84
md/sc
3/
5
H.F.
135
applicable
bonds.
A
final
decision
must
be
issued
by
the
state
1
appeal
board
no
later
than
the
following
October
1.
2
NEW
SUBSECTION
.
9.
The
county
auditor
shall
prepare
an
3
annual
report
of
all
urban
renewal
projects
or
urban
renewal
4
plans
within
the
county
that
utilized
a
division
of
revenue
5
under
this
section,
including
those
projects
and
plans
that
6
were
terminated
or
that
expired
during
the
previous
fiscal
7
year.
Such
report
shall
be
submitted
to
the
department
of
8
management
each
year
on
or
before
October
1.
9
Sec.
4.
EFFECTIVE
UPON
ENACTMENT
AND
APPLICABILITY.
This
10
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
11
enactment
and
applies
to
property
taxes
due
and
payable
in
12
fiscal
years
beginning
on
or
after
July
1,
2011.
13
EXPLANATION
14
Current
Code
section
403.19
excludes
regular
and
15
voter-approved
physical
plant
and
equipment
levy
(PPEL)
16
property
taxes
of
a
school
district
from
a
division
of
revenue
17
(tax
increment
financing)
for
urban
renewal
projects
and
18
certain
low
and
moderate
income
housing
assistance.
Current
19
Code
section
403.19,
however,
also
provides
that
all
or
a
20
portion
of
such
taxes
shall
be
paid
by
the
school
district
to
21
the
municipality
if
the
county
auditor
certifies
to
the
school
22
district
by
July
1
the
amount
of
such
levy
that
is
necessary
23
to
pay
the
principal
and
interest
on
bonds
issued
by
the
24
municipality
to
finance
an
urban
renewal
project,
if
the
bonds
25
were
issued
before
July
1,
2001.
26
This
bill
establishes
similar
provisions
for
the
property
27
taxes
for
the
instructional
support
program
of
a
school
28
district
imposed
pursuant
to
Code
section
257.19,
including
29
a
provision
requiring
the
school
district
to
pay
all
or
a
30
portion
of
such
taxes
to
the
municipality
if
the
county
auditor
31
certifies
to
the
school
district
by
July
1
the
amount
of
such
32
levy
that
is
necessary
to
pay
the
principal
and
interest
on
33
bonds
issued
by
the
municipality
to
finance
an
urban
renewal
34
project,
if
the
bonds
were
issued
before
the
effective
date
of
35
-4-
LSB
1098YH
(9)
84
md/sc
4/
5
H.F.
135
the
bill.
Additionally,
the
bill
allows
the
school
district
1
to
approve
by
resolution
the
payment
of
all
or
a
portion
of
the
2
instructional
support
program
property
tax
revenue
otherwise
3
excluded
under
the
bill,
to
the
municipality
for
the
payment
of
4
principal
and
interest
on
bonds
issued
or
other
indebtedness
5
incurred
by
the
municipality
for
an
urban
renewal
project
6
approved
before,
on,
or
after
the
effective
date
of
the
bill.
7
The
bill
includes
certification
and
reporting
requirements
8
for
the
municipality
and
the
county
auditor
and
authorizes
9
an
appeal
to
the
state
appeal
board
in
the
event
the
school
10
district
and
the
municipality
are
unable
to
agree
on
the
amount
11
of
instructional
support
program
property
tax
revenue
payable
12
from
the
school
district
to
the
municipality.
13
The
bill
takes
effect
upon
enactment
and
applies
to
property
14
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
15
July
1,
2011.
16
-5-
LSB
1098YH
(9)
84
md/sc
5/
5
