1999 Legislation
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HOUSE BILL NO. 325, As Amended – Urban renewal, deteriorated area

HOUSE BILL NO. 325, As Amended

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H0325aa.............................................by REVENUE AND TAXATION
URBAN RENEWAL - Amends existing law to provide that a deteriorated area for
urban renewal purposes shall not include any property which is exempt from
taxation as provided by Section 63-602K, Idaho Code.

03/02    House intro - 1st rdg - to printing
03/03    Rpt prt - to Rev/Tax
03/10    Rpt out - to Gen Ord
    Rpt out amen - to engros
03/11    Rpt engros - 1st rdg - to 2nd rdg as amen
03/12    2nd rdg - to 3rd rdg as amen
    Rules susp - PASSED - 58-1-11
      AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
      Black, Boe, Bruneel, Callister, Chase, Clark, Crow, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley,
      Hammond, Hansen(23), Henbest, Hornbeck, Jaquet, Judd, Kempton,
      Kendell, Kunz, Lake, Limbaugh, Linford, Marley, McKague, Montgomery,
      Mortensen, Moyle, Pischner, Pomeroy, Reynolds, Ridinger, Ringo,
      Robison, Sali, Schaefer, Smith, Smylie, Stevenson, Stoicheff, Taylor,
      Tippets, Trail, Watson, Wheeler, Williams, Zimmermann, Mr Speaker
      NAYS -- Kellogg
      Absent and excused -- Campbell, Geddes, Hansen(29), Jones,
      Loertscher, Mader, Meyer, Sellman, Stone, Tilman, Wood
    Floor Sponsor - Kempton
    Title apvd - to Senate
03/15    Senate intro - 1st rdg as amen - to Loc Gov

Bill Text


H0325


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                              HOUSE BILL NO. 325, As Amended

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO URBAN RENEWAL; AMENDING SECTION 50-2018, IDAHO  CODE,  TO  PROVIDE
 3        THAT  A  DETERIORATED  AREA SHALL NOT INCLUDE ANY PROPERTY WHICH IS EXEMPT
 4        FROM TAXATION AS PROVIDED BY SECTION 63-602K, IDAHO CODE, AND  TO  MAKE  A
 5        TECHNICAL CORRECTION; AND AMENDING SECTION 50-2903, IDAHO CODE, TO PROVIDE
 6        THAT  A  DETERIORATED  AREA SHALL NOT INCLUDE ANY PROPERTY WHICH IS EXEMPT
 7        FROM TAXATION AS PROVIDED BY SECTION 63-602K, IDAHO CODE.

 8    Be It Enacted by the Legislature of the State of Idaho:

 9        SECTION 1.  That Section 50-2018, Idaho Code, be, and the same  is  hereby
10    amended to read as follows:

11        50-2018.  DEFINITIONS. The following terms wherever used or referred to in
12    this  act,  shall  have  the following meanings, unless a different meaning is
13    clearly indicated by the context:
14        (a)  "Agency" or "urban renewal agency" shall mean a public agency created
15    by section 50-2006, Idaho Code.
16        (b)  "Municipality" shall mean any incorporated city or town, or county in
17    the state.
18        (c)  "Public body" shall mean the state  or  any  municipality,  township,
19    board,  commission,  authority,  district,  or any other subdivision or public
20    body of the state.
21        (d)  "Local governing body" shall mean the council  or  other  legislative
22    body charged with governing the municipality.
23        (e)  "Mayor"  shall  mean  the mayor of a municipality or other officer or
24    body having the duties customarily imposed upon the executive head of a munic-
25    ipality.
26        (f)  "Clerk" shall mean the clerk or other official  of  the  municipality
27    who is the custodian of the official records of such municipality.
28        (g)  "Federal  government"  shall  include the United States of America or
29    any agency or instrumentality, corporate or otherwise, of the United States of
30    America.
31        (h)  "Deteriorated area" shall mean an area in which there is  a  predomi-
32    nance  of  buildings  or  improvements, whether residential or nonresidential,
33    which by reason of dilapidation, deterioration, age  or  obsolescence,  inade-
34    quate  provision for ventilation, light, air, sanitation, or open spaces, high
35    density of population and overcrowding, or the existence of  conditions  which
36    endanger life or property by fire and other causes, or any combination of such
37    factors is conducive to ill health, transmission of disease, infant mortality,
38    juvenile  delinquency,  or  crime,  and  is  detrimental to the public health,
39    safety, morals or welfare.  A deteriorated area  shall  not  include  any
40    property  which  is exempt from taxation as provided by section 63-602K, Idaho
41    Code. 
42        (i)  "Deteriorating area" shall mean an area which by reason of the  pres-
43    ence of a substantial number of deteriorated or deteriorating structures, pre-


                                          2

 1    dominance of defective or inadequate street layout, faulty lot layout in rela-
 2    tion to size, adequacy, accessibility or usefulness, insanitary or unsafe con-
 3    ditions,  deterioration of site or other improvements, diversity of ownership,
 4    tax or special assessment delinquency exceeding the fair value  of  the  land,
 5    defective or unusual conditions of title, or the existence of conditions which
 6    endanger life or property by fire and other causes, or any combination of such
 7    factors,  substantially impairs or arrests the sound growth of a municipality,
 8    retards the provision of housing accommodations or constitutes an economic  or
 9    social liability and is a menace to the public health, safety,  morals or wel-
10    fare  in  its  present condition and use: Provided, that if such deteriorating
11    area consists of open land the conditions contained in the proviso in  section
12    50-2008(d),  Idaho  Code, shall apply: And provided further, that any disaster
13    area referred to in section 50-2008(g), Idaho Code, shall constitute a deteri-
14    orating area.  A deteriorating area shall not include any property  which
15    is exempt from taxation pursuant to section 63-602K, Idaho Code. 
16        (j)  "Urban  renewal project" may include undertakings and activities of a
17    municipality in an urban renewal area for the elimination of  deteriorated  or
18    deteriorating  areas  and  for  the prevention of the development or spread of
19    slums and blight, and may involve slum clearance and redevelopment in an urban
20    renewal area, or rehabilitation or conservation in an urban renewal  area,  or
21    any combination or part thereof in accordance with an urban renewal plan. Such
22    undertakings and activities may include:
23        (1)  acquisition of a deteriorated area or a deteriorating area or portion
24        thereof;
25        (2)  demolition and removal of buildings and improvements;
26        (3)  installation,  construction, or reconstruction of streets, utilities,
27        parks, playgrounds, off-street parking facilities,  public  facilities  or
28        buildings  and  other improvements necessary for carrying out in the urban
29        renewal area the urban renewal objectives of this act in  accordance  with
30        the urban renewal plan;
31        (4)  disposition  of  any  property  acquired  in  the  urban renewal area
32        (including sale, initial leasing or retention by the agency itself) at its
33        fair value for uses in accordance with the urban renewal plan  except  for
34          dispostion     disposition  of property to another
35        public body;
36        (5)  carrying out plans for a program of voluntary  or  compulsory  repair
37        and  rehabilitation  of buildings or other improvements in accordance with
38        the urban renewal plan;
39        (6)  acquisition of real property in the urban renewal area  which,  under
40        the  urban  renewal  plan, is to be repaired or rehabilitated for dwelling
41        use or related facilities, repair or rehabilitation of the structures  for
42        guidance purposes, and resale of the property;
43        (7)  acquisition  of  any  other  real  property in the urban renewal area
44        where necessary to eliminate unhealthful, insanitary or unsafe conditions,
45        lessen density, eliminate obsolete or other uses detrimental to the public
46        welfare, or otherwise to remove or to prevent  the  spread  of  blight  or
47        deterioration, or to provide land for needed public facilities;
48        (8)  lending or investing federal funds; and
49        (9)  construction  of  foundations,  platforms  and  other like structural
50        forms.
51        (k)  "Urban renewal area" means a deteriorated  area  or  a  deteriorating
52    area  or  a  combination  thereof which the local governing body designates as
53    appropriate for an urban renewal project.
54        (l)  "Urban renewal plan" means a plan, as it exists from  time  to  time,
55    for an urban renewal project, which plan (1) shall conform to the general plan


                                          3

 1    for  the  municipality as a whole except as provided in subsection 50-2008(g),
 2    Idaho Code; and (2) shall be  sufficiently  complete  to  indicate  such  land
 3    acquisition,  demolition  and  removal  of structures, redevelopment, improve-
 4    ments, and rehabilitation as may be proposed to be carried out  in  the  urban
 5    renewal  area,  zoning and planning changes, if any, land uses, maximum densi-
 6    ties, building requirements, and any method or methods of financing such plan,
 7    which methods may include revenue allocation financing provisions.
 8        (m)  "Related activities" shall mean (1) planning work for the preparation
 9    or completion of a community-wide plan or program pursuant to section 50-2009,
10    Idaho Code, and (2) the functions related to the acquisition and  disposal  of
11    real property pursuant to section 50-2007(d), Idaho Code.
12        (n)  "Real  property"  shall include all lands, including improvements and
13    fixtures thereon, and property of any nature appurtenant thereto, or  used  in
14    connection  therewith,  and  every  estate,  interest, right and use, legal or
15    equitable, therein, including terms for years and liens by  way  of  judgment,
16    mortgage or otherwise.
17        (o)  "Bonds"  shall  mean  any  bonds  (including refunding bonds), notes,
18    interim certificates, certificates of indebtedness, debentures or other  obli-
19    gations.
20        (p)  "Obligee"  shall  include  any bondholder, agents or trustees for any
21    bondholders, or lessor demising to the municipality property used  in  connec-
22    tion  with urban renewal, or any assignee or assignees of such lessor's inter-
23    est or any part thereof, and the federal government when it is a party to  any
24    contract with the municipality.
25        (q)  "Person"  shall  mean any individual, firm, partnership, corporation,
26    company, association, joint stock association,  or  body  politic;  and  shall
27    include  any  trustee, receiver, assignee, or other person acting in a similar
28    representative capacity.
29        (r)  "Area of operation" shall mean the area within the  corporate  limits
30    of  the municipality and the area within five (5) miles of such limits, except
31    that it shall not include any area which lies within  the  territorial  bound-
32    aries of another incorporated city or town unless a resolution shall have been
33    adopted  by  the  governing  body  of such other city or town declaring a need
34    therefor.
35        (s)  "Board" or "commission" shall mean a board,  commission,  department,
36    division, office, body or other unit of the municipality.
37        (t)  "Public  officer"  shall  mean  any  officer  who is in charge of any
38    department or branch of the government of the municipality relating to health,
39    fire, building regulations, or to other activities concerning dwellings in the
40    municipality.

41        SECTION 2.  That Section 50-2903, Idaho Code, be, and the same  is  hereby
42    amended to read as follows:

43        50-2903.  DEFINITIONS. The following terms used in this chapter shall have
44    the following meanings, unless the context otherwise requires:
45        (1)  "Act" or "this act" means this revenue allocation act.
46        (2)  "Agency" or "urban renewal agency" means a public body created pursu-
47    ant to section 50-2006, Idaho Code.
48        (3)  "Authorized  municipality"  or  "municipality" means any incorporated
49    city which has established an urban renewal agency, or by ordinance has  iden-
50    tified and created a competitively disadvantaged border community.
51        (4)  "Base  assessment roll" means the equalized assessment rolls, for all
52    classes of taxable property, on January 1 of the year in which the local  gov-
53    erning body of an authorized municipality passes an ordinance adopting or mod-


                                          4

 1    ifying  an urban renewal plan containing a revenue allocation financing provi-
 2    sion, except that the base assessment roll shall be adjusted as follows:   the
 3    equalized assessment valuation of the taxable property in a revenue allocation
 4    area  as shown upon the base assessment roll shall be reduced by the amount by
 5    which the equalized assessed valuation as shown on the  base  assessment  roll
 6    exceeds  the  current  equalized  assessed  valuation  of any taxable property
 7    located in the revenue allocation area, and by the equalized  assessed  valua-
 8    tion  of  taxable property in such revenue allocation area that becomes exempt
 9    from taxation subsequent to the date of the base assessment roll.  The  equal-
10    ized  assessed  valuation of the taxable property in a revenue allocation area
11    as shown on the base assessment roll shall be  increased    by  the  equalized
12    assessed  valuation,  as  of  the date of the base assessment roll, of taxable
13    property in such revenue allocation area that becomes taxable after  the  date
14    of the base assessment roll.
15        (5)  "Clerk" means the city clerk of the municipality.
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


                                          5

 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         Notwithstanding the above, a deteriorated area shall not include any
 8    property  which  is exempt from taxation as provided by section 63-602K, Idaho
 9    Code. 
10        (8)  "Facilities" means  land,  rights  in  land,  buildings,  structures,
11    machinery,  landscaping,  extension  of utility services, approaches, roadways
12    and parking, handling and  storage areas, and similar  auxiliary  and  related
13    facilities.
14        (9)  "Local governing body" means the city council of a municipality.
15        (10) "Plan" or "urban renewal plan" means a plan, as it exists or may from
16    time  to  time  be amended, prepared and approved pursuant to section 50-2008,
17    Idaho Code, and any method or methods of financing such  plan,  which  methods
18    may include revenue allocation financing provisions.
19        (11) "Project"  or "urban renewal project" or "competitively disadvantaged
20    border areas" may include undertakings and activities of a municipality in  an
21    urban  renewal area for the elimination of deteriorated or deteriorating areas
22    and for the prevention of the development or spread of slums and  blight,  and
23    may  involve  slum  clearance  and  redevelopment in an urban renewal area, or
24    rehabilitation or conservation in an urban renewal area, or any combination or
25    part thereof in accordance with an urban renewal plan. Such  undertakings  and
26    activities may include:
27        (a)  Acquisition of a deteriorated area or a deteriorating area or portion
28        thereof;
29        (b)  Demolition and removal of buildings and improvement;
30        (c)  Installation,  construction, or reconstruction of streets, utilities,
31        parks, playgrounds, open  space,  off-street  parking  facilities,  public
32        facilities,  public  recreation  and entertainment facilities or buildings
33        and other improvements necessary for carrying out, in  the  urban  renewal
34        area  or  competitively  disadvantaged  border  community  area, the urban
35        renewal objectives of this act in accordance with the urban  renewal  plan
36        or the competitively disadvantaged border community area ordinance.
37        (d)  Disposition of any property acquired in the urban renewal area or the
38        competitively disadvantaged border community area (including sale, initial
39        leasing  or  retention  by the agency itself) or the municipality creating
40        the competitively disadvantaged border community area at  its  fair  value
41        for  uses in accordance with the urban renewal plan except for disposition
42        of property to another public body;
43        (e)  Carrying out plans for a program of voluntary  or  compulsory  repair
44        and  rehabilitation  of buildings or other improvements in accordance with
45        the urban renewal plan;
46        (f)  Acquisition of real property in the urban renewal area or the compet-
47        itively disadvantaged border community area which, under the urban renewal
48        plan, is to be repaired or  rehabilitated  for  dwelling  use  or  related
49        facilities,  repair  or rehabilitation of the structures for guidance pur-
50        poses, and resale of the property;
51        (g)  Acquisition of any other real property in the urban renewal  area  or
52        competitively disadvantaged border community area where necessary to elim-
53        inate unhealthful, insanitary or unsafe conditions, lessen density, elimi-
54        nate  obsolete  or other uses detrimental to the public welfare, or other-
55        wise to remove or to prevent the spread of blight or deterioration, or  to


                                          6

 1        provide land for needed public facilities or where necessary to accomplish
 2        the purposes for which a competitively disadvantaged border community area
 3        was created by ordinance;
 4        (h)  Lending or investing federal funds; and
 5        (i)  Construction  of  foundations,  platforms  and  other like structural
 6        forms.
 7        (12) "Project costs" includes, but is not limited to:
 8        (a)  Capital costs, including the actual costs of the construction of pub-
 9        lic works or improvements, facilities, buildings, structures,  and  perma-
10        nent  fixtures;  the  demolition, alteration, remodeling, repair or recon-
11        struction of existing buildings, structures,  and permanent fixtures;  the
12        acquisition of equipment; and the clearing and grading of land;
13        (b)  Financing  costs, including interest during construction and capital-
14        ized debt service or repair and replacement or other appropriate reserves;
15        (c)  Real property assembly costs, meaning any deficit incurred  from  the
16        sale or lease by a municipality of real or personal property within a rev-
17        enue allocation district;
18        (d)  Professional service costs, including those costs incurred for archi-
19        tectural, planning, engineering, and legal advice and services;
20        (e)  Direct  administrative  costs,  including  reasonable charges for the
21        time spent by municipal employees in connection with the implementation of
22        a project plan;
23        (f)  Relocation costs;
24        (g)  Other costs incidental to any of the foregoing costs.
25        (13) "Revenue allocation area" means that portion of an urban renewal area
26    or competitively disadvantaged border community area  the  equalized  assessed
27    valuation  (as  shown  by  the taxable property assessment rolls) of which the
28    local governing body has determined, on and as a  part  of  an  urban  renewal
29    plan,  is likely to increase as a result of the initiation of an urban renewal
30    project or competitively disadvantaged border community area. The base assess-
31    ment roll or rolls of revenue allocation area or areas shall not exceed at any
32    time ten percent (10%) of the current assessed valuation of all taxable  prop-
33    erty within the municipality.
34        (14) "State" means the state of Idaho.
35        (15) "Tax"  or  "taxes" means all ad valorem tax levies upon taxable prop-
36    erty.
37        (16) "Taxable property" means taxable real  property,  personal  property,
38    operating  property,  or any other tangible or intangible property included on
39    the equalized assessment rolls.
40        (17) "Taxing district" means a  taxing  district  as  defined  in  section
41    63-201, Idaho Code, as that section now exists or may hereafter be amended.

Amendment


AH0325


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                       Moved by     Chase                

                                       Seconded by  Kempton              


                             IN THE HOUSE OF REPRESENTATIVES
                             HOUSE AMENDMENTS TO H.B. NO. 325

 1                               AMENDMENTS TO SECTION 1
 2        On page 1 of the printed bill, in line 41,  delete " otherwise wholly
 3    or partially "; and in line  42  delete  "  title  63  "  and
 4    insert: " section 63-602K ".
 5        On  page 2, in line 16 delete " wholly or partially ", and also
 6    in line 16,  delete " title 63 " and insert: " section 63-602K
 7    ".

 8                               AMENDMENTS TO SECTION 2
 9        On page 5, in line 8 delete " otherwise wholly or partially  ";
10    and  in  line  9  delete  "  title  63 " and insert: " section
11    63-602K ".

12                                 CORRECTIONS TO TITLE
13        On page 1, in line 3 delete "OTHERWISE"; in line 4, delete "WHOLLY OR PAR-
14    TIALLY", and also in line 4, delete "TITLE 63" and insert: "SECTION  63-602K";
15    in line 7 delete "OTHERWISE WHOLLY OR PARTIALLY"; and in line 8, delete "TITLE
16    63" and insert: "SECTION 63-602K".

Statement of Purpose / Fiscal Impact


                            STATEMENT OF PURPOSE

                                   RS09157

The speculative value of agricultural land under 63-602K, Idaho Code, can be
used to questionable advantage by municipalities in formulating the size of
an urban renewal area based on the assessed value of property within the
boundaries of the urban renewal area. Additionally, any land wholly or
partially exempt from property tax for reason of use can hardly be classified
as a deteriorated area or deteriorating area.

                                      
                                      
                                      
                                      
                                      
                                 FISCAL NOTE

Prevents artificial expansion of the urban renewal property area which is
made exempt from previous county or city taxation by statute. Reduces the
property tax impact to taxpayers who must make up the tax revenue base lost
by formation of the urban renewal area.













CONTACT:  Rep. Jim Kempton
   208/332-1146
   
STATEMENT OE PURPOSE/ FISCAL NOTE         Bill No.     H 325