House File 656 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HSB 195)
A BILL FOR
1 An Act relating to Iowa's urban renewal law by excluding the
2 school foundation property tax from certain divisions of
3 tax revenue and including effective date and applicability
4 provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 403.19, subsection 2, paragraph a, Code
1 2 2017, is amended to read as follows:
1 3 a. That portion of the taxes each year in excess of such
1 4 amount shall be allocated to and when collected be paid into a
1 5 special fund of the municipality to pay the principal of and
1 6 interest on loans, moneys advanced to, or indebtedness, whether
1 7 funded, refunded, assumed, or otherwise, including bonds
1 8 issued under the authority of section 403.9, subsection 1,
1 9 incurred by the municipality to finance or refinance, in whole
1 10 or in part, an urban renewal project within the area, and to
1 11 provide assistance for low and moderate income family housing
1 12 as provided in section 403.22. However, except as provided
1 13 in paragraph "b", taxes for the regular and voter=approved
1 14 physical plant and equipment levy of a school district imposed
1 15 pursuant to section 298.2, and taxes for the instructional
1 16 support program of a school district imposed pursuant to
1 17 section 257.19, foundation property taxes of a school district
1 18 imposed under section 257.3, taxes for the payment of bonds
1 19 and interest of each taxing district, and taxes imposed under
1 20 section 346.27, subsection 22, related to joint county=city
1 21 buildings shall be collected against all taxable property
1 22 within the taxing district without limitation by the provisions
1 23 of this subsection.
1 24 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
1 25 immediate importance, takes effect upon enactment.
1 26 Sec. 3. APPLICABILITY. This Act applies to property taxes
1 27 due and payable in fiscal years beginning on or after July 1,
1 28 2018, that are levied against any of the following:
1 29 1. Property located in an urban renewal area for which the
1 30 ordinance providing for a division of revenue takes effect on
1 31 or after the effective date of this Act.
1 32 2. Property annexed or otherwise included in an urban
1 33 renewal area after the effective date of the ordinance
1 34 providing for a division of revenue if the annexation or
1 35 inclusion occurs on or after the effective date of this Act.
2 1 EXPLANATION
2 2 The inclusion of this explanation does not constitute agreement with
2 3 the explanation's substance by the members of the general assembly.
2 4 This bill excludes the school district foundation property
2 5 tax imposed under Code section 257.3 from the division of
2 6 revenue under Code section 403.19 (tax increment financing).
2 7 Under the bill, the foundation property tax is not divided
2 8 and paid into the municipality's special fund for the payment
2 9 of urban renewal indebtedness but instead is required to be
2 10 levied, collected, and paid to the school district in the same
2 11 manner as all other property taxes.
2 12 Under Iowa's urban renewal law, "municipality" includes
2 13 cities and counties. In addition, by operation of law, the
2 14 bill applies to divisions of revenue adopted by a community
2 15 college under Code section 260E.4 and rural improvement zones
2 16 under Code section 357H.9.
2 17 The bill takes effect upon enactment. The bill applies
2 18 to property taxes due and payable in fiscal years beginning
2 19 on or after July 1, 2018, that are levied against any of the
2 20 following: (1) property located in an urban renewal area
2 21 for which the ordinance providing for a division of revenue
2 22 takes effect on or after the effective date of the bill; or
2 23 (2) property annexed or otherwise included in an urban renewal
2 24 area after the effective date of the ordinance providing for a
2 25 division of revenue if the annexation or inclusion occurs on or
2 26 after the effective date of the bill.
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