View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
H0295...............................................by REVENUE AND TAXATION LOCAL ECONOMIC DEVELOPMENT ACT - Amends existing law to extend authority under the Local Economic Development Act to counties by providing references to counties; to further define terms; and to include counties within requirements for public hearing and ordinance. 02/23 House intro - 1st rdg - to printing 02/24 Rpt prt - to Rev/Tax
H0295|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 295 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO THE LOCAL ECONOMIC DEVELOPMENT ACT; AMENDING SECTION 50-2902, 3 IDAHO CODE, TO EXTEND AUTHORITY UNDER THE LOCAL ECONOMIC DEVELOPMENT ACT 4 TO COUNTIES BY PROVIDING REFERENCES TO COUNTIES; AMENDING SECTION 50-2903, 5 IDAHO CODE, TO FURTHER DEFINE TERMS AND TO MAKE A TECHNICAL CORRECTION; 6 AND AMENDING SECTION 50-2906, IDAHO CODE, TO INCLUDE COUNTIES WITHIN 7 REQUIREMENTS FOR PUBLIC HEARING AND ORDINANCE. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Section 50-2902, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 50-2902. FINDINGS AND PURPOSE. It is hereby found and declared that there 12 exists in municipalities and counties a need to raise revenue to 13 finance the economic growth and development of urban renewal areas and compet- 14 itively disadvantaged border community areas. The purpose of this act is to 15 provide for the allocation of a portion of the property taxes levied against 16 taxable property located in a revenue allocation area for a limited period of 17 time to assist in the financing of urban renewal plans, to encourage private 18 development in urban renewal areas and competitively disadvantaged border com- 19 munity areas, to prevent or arrest the decay of urban areas due to the inabil- 20 ity of existing financing methods to promote needed public improvements, to 21 encourage taxing districts to cooperate in the allocation of future tax reve- 22 nues arising in urban areas and competitively disadvantaged border community 23 areas in order to facilitate the long-term growth of their common tax base, 24 and to encourage private investment within urban areas and competitively dis- 25 advantaged border community areas. The foregoing purposes are hereby declared 26 to be valid public purposes for municipalities and counties . 27 SECTION 2. That Section 50-2903, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 50-2903. DEFINITIONS. The following terms used in this chapter shall have 30 the following meanings, unless the context otherwise requires: 31 (1) "Act" or "this act" means this revenue allocation act. 32 (2) "Agency" or "urban renewal agency" means a public body created pursu- 33 ant to section 50-2006, Idaho Code. 34 (3) "Authorized municipality" or "municipality" means any incorporated 35 city or county which has established an urban renewal agency, or 36 by ordinance has identified and created a competitively disadvantaged border 37 community. 38 (4) "Base assessment roll" means the equalized assessment rolls, for all 39 classes of taxable property, on January 1 of the year in which the local gov- 40 erning body of an authorized municipality passes an ordinance adopting or mod- 41 ifying an urban renewal plan containing a revenue allocation financing provi- 2 1 sion, except that the base assessment roll shall be adjusted as follows: the 2 equalized assessment valuation of the taxable property in a revenue allocation 3 area as shown upon the base assessment roll shall be reduced by the amount by 4 which the equalized assessed valuation as shown on the base assessment roll 5 exceeds the current equalized assessed valuation of any taxable property 6 located in the revenue allocation area, and by the equalized assessed valua- 7 tion of taxable property in such revenue allocation area that becomes exempt 8 from taxation subsequent to the date of the base assessment roll. The equal- 9 ized assessed valuation of the taxable property in a revenue allocation area 10 as shown on the base assessment roll shall be increased by the equalized 11 assessed valuation, as of the date of the base assessment roll, of taxable 12 property in such revenue allocation area that becomes taxable after the date 13 of the base assessment roll. 14 (5) "Clerk" means the city clerk of the municipality or county 15 clerk of the board of county commissioners . 16 (6) "Competitively disadvantaged border community area" means a parcel of 17 land consisting of at least forty (40) acres which is situated within the 18 boundaries of an incorporated city and within twenty-five (25) miles of a 19 state or international border, which the governing body of such incorporated 20 city has determined by ordinance is disadvantaged in its ability to attract 21 business, private investment, or commercial development, as a result of a com- 22 petitive advantage in the adjacent state or nation resulting from inequities 23 or disparities in comparative sales taxes, income taxes, property taxes, popu- 24 lation or unique geographic features. 25 (7) "Deteriorated area" means: 26 (a) Any area, including slum area, in which there is a predominance of 27 buildings or improvements, whether residential or nonresidential, which by 28 reason of dilapidation, deterioration, age or obsolescence, inadequate 29 provision for ventilation, light, air, sanitation, or open spaces, high 30 density of population and overcrowding, or the existence of conditions 31 which endanger life or property by fire and other causes, or any combina- 32 tion of such factors, is conducive to ill health, transmission of disease, 33 infant mortality, juvenile delinquency, or crime, and is detrimental to 34 the public health, safety, morals or welfare. 35 (b) Any area which by reason of the presence of a substantial number of 36 deteriorated or deteriorating structures, predominance of defective or 37 inadequate street layout, faulty lot layout in relation to size, adequacy, 38 accessibility or usefulness, insanitary or unsafe conditions, deteriora- 39 tion of site or other improvements, diversity of ownership, tax or special 40 assessment delinquency exceeding the fair value of the land, defective or 41 unusual conditions of title, or the existence of conditions which endanger 42 life or property by fire and other causes, or any combination of such fac- 43 tors, results in economic underdevelopment of the area, substantially 44 impairs or arrests the sound growth of a municipality, retards the provi- 45 sion of housing accommodations or constitutes an economic or social lia- 46 bility and is a menace to the public health, safety, morals or welfare in 47 its present condition and use. 48 (c) Any area which is predominately open and which because of obsolete 49 platting, diversity of ownership, deterioration of structures or improve- 50 ments, or otherwise, results in economic underdevelopment of the area or 51 substantially impairs or arrests the sound growth of a municipality. The 52 provisions of section 50-2008(d), Idaho Code, shall apply to open areas. 53 (d) Any area which the local governing body certifies is in need of rede- 54 velopment or rehabilitation as a result of a flood, storm, earthquake, or 55 other natural disaster or catastrophe respecting which the governor of the 3 1 state has certified the need for disaster assistance under any federal 2 law. 3 (e) Any area which by reason of its proximity to the border of an adja- 4 cent state is competitively disadvantaged in its ability to attract pri- 5 vate investment, business or commercial development which would promote 6 the purposes of this chapter. 7 (8) "Facilities" means land, rights in land, buildings, structures, 8 machinery, landscaping, extension of utility services, approaches, roadways 9 and parking, handling and storage areas, and similar auxiliary and related 10 facilities. 11 (9) "Local governing body" means the city council of a municipality 12 or the board of county commissioners of any county . 13 (10) "Plan" or "urban renewal plan" means a plan, as it exists or may from 14 time to time be amended, prepared and approved pursuant to section 50-2008, 15 Idaho Code, and any method or methods of financing such plan, which methods 16 may include revenue allocation financing provisions. 17 (11) "Project" or "urban renewal project" or "competitively disadvantaged 18 border areas" may include undertakings and activities of a municipality in an 19 urban renewal area for the elimination of deteriorated or deteriorating areas 20 and for the prevention of the development or spread of slums and blight, and 21 may involve slum clearance and redevelopment in an urban renewal area, or 22 rehabilitation or conservation in an urban renewal area, or any combination or 23 part thereof in accordance with an urban renewal plan. Such undertakings and 24 activities may include: 25 (a) Acquisition of a deteriorated area or a deteriorating area or portion 26 thereof; 27 (b) Demolition and removal of buildings and improvement; 28 (c) Installation, construction, or reconstruction of streets, utilities, 29 parks, playgrounds, open space, off-street parking facilities, public 30 facilities, public recreation and entertainment facilities or buildings 31 and other improvements necessary for carrying out, in the urban renewal 32 area or competitively disadvantaged border community area, the urban 33 renewal objectives of this act in accordance with the urban renewal plan 34 or the competitively disadvantaged border community area ordinance.35; 36 (d) Disposition of any property acquired in the urban renewal area or the 37 competitively disadvantaged border community area (including sale, initial 38 leasing or retention by the agency itself) or the municipality creating 39 the competitively disadvantaged border community area at its fair value 40 for uses in accordance with the urban renewal plan except for disposition 41 of property to another public body; 42 (e) Carrying out plans for a program of voluntary or compulsory repair 43 and rehabilitation of buildings or other improvements in accordance with 44 the urban renewal plan; 45 (f) Acquisition of real property in the urban renewal area or the compet- 46 itively disadvantaged border community area which, under the urban renewal 47 plan, is to be repaired or rehabilitated for dwelling use or related 48 facilities, repair or rehabilitation of the structures for guidance pur- 49 poses, and resale of the property; 50 (g) Acquisition of any other real property in the urban renewal area or 51 competitively disadvantaged border community area where necessary to elim- 52 inate unhealthful, insanitary or unsafe conditions, lessen density, elimi- 53 nate obsolete or other uses detrimental to the public welfare, or other- 54 wise to remove or to prevent the spread of blight or deterioration, or to 55 provide land for needed public facilities or where necessary to accomplish 4 1 the purposes for which a competitively disadvantaged border community area 2 was created by ordinance; 3 (h) Lending or investing federal funds; and 4 (i) Construction of foundations, platforms and other like structural 5 forms. 6 (12) "Project costs" includes, but is not limited to: 7 (a) Capital costs, including the actual costs of the construction of pub- 8 lic works or improvements, facilities, buildings, structures, and perma- 9 nent fixtures; the demolition, alteration, remodeling, repair or recon- 10 struction of existing buildings, structures, and permanent fixtures; the 11 acquisition of equipment; and the clearing and grading of land; 12 (b) Financing costs, including interest during construction and capital- 13 ized debt service or repair and replacement or other appropriate reserves; 14 (c) Real property assembly costs, meaning any deficit incurred from the 15 sale or lease by a municipality of real or personal property within a rev- 16 enue allocation district; 17 (d) Professional service costs, including those costs incurred for archi- 18 tectural, planning, engineering, and legal advice and services; 19 (e) Direct administrative costs, including reasonable charges for the 20 time spent by municipal employees in connection with the implementation of 21 a project plan; 22 (f) Relocation costs; 23 (g) Other costs incidental to any of the foregoing costs. 24 (13) "Revenue allocation area" means that portion of an urban renewal area 25 or competitively disadvantaged border community area the equalized assessed 26 valuation (as shown by the taxable property assessment rolls) of which the 27 local governing body has determined, on and as a part of an urban renewal 28 plan, is likely to increase as a result of the initiation of an urban renewal 29 project or competitively disadvantaged border community area. The base assess- 30 ment roll or rolls of revenue allocation area or areas shall not exceed at any 31 time ten percent (10%) of the current assessed valuation of all taxable prop- 32 erty within the municipality. 33 (14) "State" means the state of Idaho. 34 (15) "Tax" or "taxes" means all ad valorem tax levies upon taxable prop- 35 erty. 36 (16) "Taxable property" means taxable real property, personal property, 37 operating property, or any other tangible or intangible property included on 38 the equalized assessment rolls. 39 (17) "Taxing district" means a taxing district as defined in section 40 63-201, Idaho Code, as that section now exists or may hereafter be amended. 41 SECTION 3. That Section 50-2906, Idaho Code, be, and the same is hereby 42 amended to read as follows: 43 50-2906. PUBLIC HEARING AND ORDINANCE REQUIRED. (1) To adopt a new urban 44 renewal plan or create a competitively disadvantaged border community area 45 containing a revenue allocation financing provision, the local governing body 46 of an authorized municipality must enact an ordinance in accordance with chap- 47 ter 9, title 50, Idaho Code, and section 50-2008, Idaho Code , or chapter 48 7, title 31, Idaho Code, and section 50-2008, Idaho Code, as the case may be 49 . To modify an existing urban renewal plan, to add or change a revenue 50 allocation, an authorized municipality must enact an ordinance in accordance 51 with chapter 9, title 50, Idaho Code, or chapter 7, title 31, Idaho 52 Code, and conduct a public hearing as provided in section 50-2008(c), 53 Idaho Code. No urban renewal project, plan, competitively disadvantaged border 5 1 community area or modification thereto shall be held ineffective for failure 2 to comply with the requirements of this section if compliance with the sec- 3 tion is substantial and in good faith. 4 (2) A revenue allocation financing provision adopted in accordance with 5 this chapter shall be effective retroactively to January 1 of the year in 6 which the local governing body of the authorized municipality enacts such 7 ordinance. 8 (3) The local governing body of an authorized municipality shall prepare 9 a notice stating (a) that an urban renewal plan or modification thereto or a 10 competitively disadvantaged border community area has been proposed and is 11 being considered for adoption, and that such plan or modification thereto con- 12 tains a revenue allocation financing provision that will cause property taxes 13 resulting from any increases in equalized assessed valuation in excess of the 14 equalized assessed valuation as shown on the base assessment roll to be allo- 15 cated to the agency for urban renewal and competitively disadvantaged border 16 community area purposes; and (b) that a public hearing on such plan or modifi- 17 cation will be held by the local governing body pursuant to section 18 50-2008(c), Idaho Code. The notice shall also state the time, date, and place 19 of the hearing. At least thirty (30) days but not more than sixty (60) days 20 prior to the date set for final reading of the ordinance, the local governing 21 body shall publish the notice in a newspaper of general circulation and trans- 22 mit the notice, together with a copy of the plan and recommendation of the 23 urban renewal agency or the municipality which by ordinance created the com- 24 petitively disadvantaged border community area, to the governing body of each 25 taxing district which levies taxes upon any taxable property in the revenue 26 allocation area and which would be affected by the revenue allocation financ- 27 ing provision of the urban renewal plan proposed to be approved by the local 28 governing body.
STATEMENT OF PURPOSE
RS 08938
When first enacted in 1988, the Local Economic Development Act
limited the definition of "authorized municipality" to cities. The
Idaho Urban Renewal Law when first enacted in 1965 extended urban
renewal authority to counties. This bill extends the definition of
authorized municipality under the Local Economic Development Act to
counties.
FISCAL NOTE
There is no fiscal impact on the State of Idaho.
Contact: Tim Ridinger
Phone: 332-1000
STATEMENT OF PURPOSE/ FlSCAL NOTE Bill No. H 295