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H0616...............................................by REVENUE AND TAXATION
URBAN RENEWAL DISTRICTS - Amends existing law relating to urban renewal
districts, revenue allocation areas and competitively disadvantaged border
community areas to provide that additions to the land area of an existing
revenue allocation area shall not affect the originally established date of
duration; to require additional information in the plan submitted by an
urban renewal agency to the local governing body; to require a certified
report to be submitted to the county clerk and the State Tax Commission by
January 10 of each year; to require verification by the State Tax
Commission or the county commissioners of compliance with law regarding the
limitation on the base assessment roll of a revenue allocation area; to
provide a procedure when a base assessment roll of a revenue allocation
area is not in compliance; to provide additional limitations on forming and
maintaining contiguous boundaries; to require certification by the State
Tax Commission of limitations on allowable assessed valuation of taxable
property in a revenue allocation area; and to provide direction to the
State Tax Commission if it is determined that the base assessment roll of a
revenue allocation area is not in compliance.
03/11 House intro - 1st rdg - to printing
03/12 Rpt prt - to 2nd rdg
03/13 2nd rdg - to 3rd rdg
03/14 3rd rdg - FAILED - 33-37-0
AYES -- Anderson, Barrett, Bayer, Bedke, Bell, Bowers, Chadderdon,
Clark, Collins, Crane, Eskridge, Hagedorn, Hart, Harwood, Henderson,
Kren, Lake, Marriott, Mathews, McGeachin, Mortimer, Moyle, Nonini,
Roberts, Schaefer, Shepherd(08), Stevenson, Thayn, Thomas, Vander
Woude, Wood(27), Wood(35), Mr. Speaker
NAYS -- Andrus, Bilbao, Black, Block, Bock, Boe, Bolz, Brackett,
Bradford, Chavez, Chew, Durst, Henbest, Jaquet, Killen, King,
Labrador, LeFavour, Loertscher, Luker, Nielsen, Pasley-Stuart,
Patrick, Pence, Raybould, Ringo, Ruchti, Rusche, Sayler,
Shepherd(02), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Trail, Wills
Absent and excused -- None
Floor Sponsor - Hart
Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 616 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO URBAN RENEWAL DISTRICTS, REVENUE ALLOCATION AREAS AND COMPETI- 3 TIVELY DISADVANTAGED BORDER COMMUNITY AREAS; AMENDING SECTION 50-2904, 4 IDAHO CODE, TO PROVIDE THAT ADDITIONS TO THE LAND AREA OF AN EXISTING REV- 5 ENUE ALLOCATION AREA SHALL NOT AFFECT THE ORIGINALLY ESTABLISHED DATE OF 6 DURATION AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 50-2905, 7 IDAHO CODE, TO REQUIRE ADDITIONAL INFORMATION IN THE PLAN SUBMITTED BY AN 8 URBAN RENEWAL AGENCY TO THE LOCAL GOVERNING BODY AND TO MAKE TECHNICAL 9 CORRECTIONS; AMENDING SECTION 50-2907, IDAHO CODE, TO REQUIRE A CERTIFIED 10 REPORT TO BE SUBMITTED TO THE COUNTY CLERK AND THE STATE TAX COMMISSION BY 11 JANUARY 10 OF EACH YEAR, TO REQUIRE VERIFICATION BY THE STATE TAX COMMIS- 12 SION OR THE COUNTY COMMISSIONERS OF COMPLIANCE WITH LAW REGARDING THE LIM- 13 ITATION ON THE BASE ASSESSMENT ROLL OF A REVENUE ALLOCATION AREA AND TO 14 PROVIDE A PROCEDURE IF A BASE ASSESSMENT ROLL OF A REVENUE ALLOCATION AREA 15 IS NOT IN COMPLIANCE; AND AMENDING SECTION 63-215, IDAHO CODE, TO PROVIDE 16 ADDITIONAL LIMITATIONS ON FORMING AND MAINTAINING CONTIGUOUS BOUNDARIES, 17 TO REQUIRE CERTIFICATION BY THE STATE TAX COMMISSION OF LIMITATIONS ON 18 ALLOWABLE ASSESSED VALUATION OF TAXABLE PROPERTY IN A REVENUE ALLOCATION 19 AREA AND TO PROVIDE DIRECTION TO THE STATE TAX COMMISSION IF IT IS DETER- 20 MINED THAT THE BASE ASSESSMENT ROLL OF A REVENUE ALLOCATION AREA IS NOT IN 21 COMPLIANCE. 22 Be It Enacted by the Legislature of the State of Idaho: 23 SECTION 1. That Section 50-2904, Idaho Code, be, and the same is hereby 24 amended to read as follows: 25 50-2904. AUTHORITY TO CREATE REVENUE ALLOCATION AREA. An authorized 26 municipality is hereby authorized and empowered to adopt, at any time, a reve- 27 nue allocation financing provision, as described in this chapter, as part of 28 an urban renewal plan or competitively disadvantaged border community area 29 ordinance. A revenue allocation financing provision may be adopted either at 30 the time of the original adoption of an urban renewal plan or the creation by 31 ordinance of a competitively disadvantaged border community area or thereafter 32 as a modification of an urban renewal plan or the ordinance creating the com- 33 petitively disadvantaged border community area. Urban renewal plans existing 34 prior to the effective date of this section may be modified to include a reve- 35 nue allocation financing provision. Except as providedbelowin subsections 36 (1), (2) and (3) of this section, no revenue allocation provision of an urban 37 renewal plan or competitively disadvantaged border community area ordinance, 38 including all amendments thereto, shall have a duration exceeding twenty-four 39 (24) years from the date the ordinance is approved by the municipality.; and 40 provided further, no additions to the land area of an existing revenue alloca- 41 tion area shall be interpreted to or shall cause an extension of the date of 42 the twenty-four (24) year limit that was originally established for the reve- 43 nue allocation area. Notwithstanding these limitations, tThe duration of the 2 1 revenue allocation financing provision may be extended if: 2 (1) The maturity date of any bonds issued to provide funds for a specific 3 project in the revenue allocation area and payable from the revenue allocation 4 financing provision exceeds the duration of the revenue allocation financing 5 provision, provided such bond maturity is not greater than thirty (30) years; 6 or 7 (2) The urban renewal agency determines that it is necessary to refinance 8 outstanding bonds payable from the revenue allocation financing provision to a 9 maturity exceeding the twenty-four (24) year duration of the revenue alloca- 10 tion financing provision in order to avoid a default on the bonds; or 11 (3) The local governing body has adopted an urban renewal plan or compet- 12 itively disadvantaged border community area ordinance or an amendment to an 13 urban renewal plan or competitively disadvantaged border community area ordi- 14 nance prior to July 1, 2000, in which is defined the duration of the plan 15 beyond a period of twenty-four (24) years, in which case the revenue alloca- 16 tion provision shall have a duration as described in such urban renewal plan 17 or competitively disadvantaged border community area ordinance; and 18 (4) During the extensions set forth in subsections (1) and (2) of this 19 section, any revenue allocation revenues exceeding the amount necessary to 20 repay the bonds during the period exceeding the twenty-four (24) year maturity 21 of the revenue allocation financing provision shall be returned to the taxing 22 districts in the revenue allocation area on a pro rata basis. 23 SECTION 2. That Section 50-2905, Idaho Code, be, and the same is hereby 24 amended to read as follows: 25 50-2905. RECOMMENDATION OF URBAN RENEWAL AGENCY. In order to implement 26 the provisions of this chapter, the urban renewal agency of the municipality 27 shall prepare and adopt a plan for each revenue allocation area and submit the 28 plan and recommendation for approval thereof to the local governing body. The 29 plan shall include:a statement listing:30 (1) A statement describing the value of the base assessment roll of the 31 revenue allocation area, the increment value for the first year, the current 32 total assessed valuation of all taxable property within the revenue allocation 33 area and the total assessed valuation of all taxable property within the 34 municipality. 35 (2) A statement listing tThe kind, number, and location of all proposed 36 public works or improvements within the revenue allocation area; 37 (23) An economic feasibility study; 38 (34) A detailed list of estimated project costs; 39 (45) A fiscal impact statement showing the impact of the revenue alloca- 40 tion area, both until and after the bonds are repaid, upon all taxing dis- 41 tricts levying taxes upon property on the revenue allocation area; and 42 (56) A description of the methods of financing all estimated project 43 costs and the time when related costs or monetary obligations are to be incur- 44 red. 45 (67) A termination date for the plan and the revenue allocation area as 46 provided for in section 50-2903(20), Idaho Code. In determining the termina- 47 tion date, the plan shall recognize that the agency shall receive allocation 48 of revenues in the calendar year following the last year of the revenue allo- 49 cation provision described in the urban renewal plan. 50 (78) A description of the disposition or retention of any assets of the 51 agency upon the termination date. Provided however, nothing herein shall pre- 52 vent the agency from retaining assets or revenues generated from such assets 53 as long as the agency shall have resources other than revenue allocation funds 3 1 to operate and manage such assets. 2 SECTION 3. That Section 50-2907, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 50-2907. TRANSMITTAL OF REVENUE ALLOCATION AREA DESCRIPTION AND OTHER 5 DOCUMENTS TO TAXING AGENCIES -- FILING ANNUAL REPORT WITH COUNTY CLERK AND 6 STATE TAX COMMISSION. (1) After the effective date of an ordinance enacted by 7 the local governing body of an authorized municipality, the clerk of the 8 authorized municipality shall transmit, to the county auditor and tax assessor 9 of the county in which the revenue allocation area is located, to the affected 10 taxing districts, and to the state tax commission, a copy of the ordinance 11 enacted, a copy of the legal description of the boundaries of the revenue 12 allocation area, and a map indicating the boundaries of the revenue allocation 13 area. 14 (2) For revenue allocation areas extending beyond the corporate municipal 15 boundary of the authorized municipality, the copy of the ordinance enacted by 16 the authorized municipality shall include, as an attachment, a copy of the 17 transfer of powers ordinance adopted by the cooperating county under section 18 50-2906(3)(b), Idaho Code. 19 (3) An urban renewal agency or the clerk of the authorized municipality 20 that enacted the ordinance creating a competitively disadvantaged border com- 21 munity area shall file a report by January 10 of each year with the county 22 clerk and the state tax commission which states the value of the base assess- 23 ment roll, the increment value, the current total assessed valuation of all 24 taxable property within the revenue allocation area and the total assessed 25 valuation of all taxable property within the municipality. The report shall 26 use the most current available values. 27 (a) The report shall accompany any required filing with the state tax 28 commission regarding the initial formation of an urban renewal area or a 29 competitively disadvantaged border community area and any required filing 30 regarding the addition or expansion of a revenue allocation area. 31 (b) Such submittals to the county clerk and the state tax commission 32 shall be certified by either the county assessor, the county treasurer or 33 a certified public accountant. The report issued with the certification 34 shall state whether or not the base assessment roll of the revenue alloca- 35 tion area is in compliance with the ten percent (10%) limitation require- 36 ment specified in section 50-2903(15), Idaho Code. 37 (c) The state tax commission or the county commissioners shall not permit 38 the reallocation of revenue when the base assessment roll of the revenue 39 allocation area does not comply with section 50-2903(15), Idaho Code, and 40 shall include the increment value in the value of the base assessment 41 roll. 42 (d) When the annual report indicates that the base assessment roll of the 43 revenue allocation area does not comply with the requirements of section 44 50-2903(15), Idaho Code, the state tax commission or the county commis- 45 sioners shall suspend the reallocation of tax revenue for the following 46 year and shall include the increment value in the base assessment roll 47 unless, by September 1 of the following year, the base assessment roll of 48 the revenue allocation area has been brought into compliance with section 49 50-2903(15), Idaho Code. Notice of the pending suspension by the state tax 50 commission or the county commissioners of the reallocation of tax revenue 51 shall be made to the urban renewal agency by certified mail. Such notice 52 shall be sent within thirty (30) days of receipt of the annual report from 53 the urban renewal agency. 4 1 (4) Such documents shall be transmitted within the time required by sec- 2 tion 63-215, Idaho Code. 3 SECTION 4. That Section 63-215, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 63-215. LEGAL DESCRIPTION AND MAP OF BOUNDARIES TO BE RECORDED AND FILED. 6 (1) Any taxing district which shall be formed or organized hereafter, or which 7 shall change any existing boundaries hereafter, shall cause one (1) copy of 8 the legal description and map prepared in a draftsmanlike manner which shall 9 plainly and clearly designate the boundaries of such district or municipality 10 as formed or organized, or as altered, to be recorded with the county 11 recorder and filed with the county assessor in the counties within which the 12 unit is located and with the state tax commission within thirty (30) days fol- 13 lowing the effective date of such formation, organization or alteration but no 14 later than the tenth day of January of the year following such formation, 15 organization or alteration. In the case of fire protection districts, the 16 board of county commissioners approving the boundaries shall be responsible 17 for delivering to the assessor and recorder the map and legal description of 18 the amended district boundaries. 19 (2) Urban renewal agencies shall comply with the requirements of subsec- 20 tion (1) of this section when a revenue allocation area within the jurisdic- 21 tion of the urban renewal agency is formed or when the boundaries of such an 22 area are altered. 23 (3) The county assessor, county auditor and state tax commission shall 24 retain on file in their respective offices all copies of legal descriptions of 25 taxing district boundaries and maps filed by the various taxing jurisdictions 26 authorized to impose a levy on property. 27 (4) The state tax commission shall be responsible for providing copies of 28 uniform tax code area numbers and maps to the county assessor, county auditor 29 and county treasurer and various companies having operating property subject 30 to assessment in the state of Idaho and under the jurisdiction of the state 31 tax commission for assessment and taxation purposes. 32 (5) Unless otherwise specifically authorized to form with noncontiguous 33 boundaries, or to annex or de-annex properties so as to make noncontiguous 34 boundaries, all taxing districts, urban renewal areas and competitively disad- 35 vantaged border community areas and their associated revenue allocation areas 36 shall form with and maintain contiguous boundaries. Furthermore, no urban 37 renewal agency or the governing body of an authorized municipality that 38 enacted an ordinance to create a competitively disadvantaged border community 39 area shall be permitted to annex land that will be connected to the annexing 40 area only by a shoestring or strip of land upon a public highway. This limita- 41 tion on annexed lands includes and applies to associated revenue allocation 42 areas. 43 (6) The state tax commission, upon receipt of the filing required in sub- 44 section (2) of this section, shall review such filing and certify that the 45 base assessment roll of any newly formed revenue allocation area, or the base 46 assessment roll of any revenue allocation area whose boundaries have been 47 altered, does not exceed ten percent (10%) of the current assessed valuation 48 of all taxable property within the municipality as required by the provisions 49 of section 50-2903(15), Idaho Code. The state tax commission shall proceed as 50 directed in section 50-2907(3), Idaho Code, if it is determined that the base 51 assessment roll of a revenue allocation area is not in compliance.
STATEMENT OF PURPOSE
RS 18082
The purpose of this legislation is to provide the State Tax
Commission authority to check submittals for newly proposed and
expanding urban renewal districts and competitively disadvantaged
border community areas for compliance with Idaho Code.
Specifically, the legislation will address the existing
requirement found at Idaho Code 50-2903(15) that mandates that the
base assessment rolls do not exceed ten percent (10%) of the current
assessed valuation of all taxable property within the municipality.
It also limits the life span of expanded revenue allocation areas to
the 24 year life span of the original revenue allocation area.
Lastly, the legislation will prohibit urban renewal districts,
taxing districts, and competitively disadvantaged border community
areas from utilizing "shoestring" boundary configurations. FISCAL NOTE
There will be additional hours required by personnel at the
State Tax Commission to check the maps for newly proposed urban
renewal districts, taxing districts, revenue allocation areas, and
competitively disadvantaged border community areas. The State Tax
Commission will also check maps of proposed expansions of these same
entities.
Contact: Representative Phil Hart
Phone: 208.332.1000
Sen. Jim Hammond
STATEMENT OF PURPOSE/FISCAL NOTE H 616