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H0568...............................................by REVENUE AND TAXATION URBAN RENEWAL DISTRICTS - Amends existing law to provide that additions to the land area of an urban renewal district, revenue allocation area or competitively disadvantaged border community 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 the county clerk or the State Tax Commission; to require verification; to provide additional limitations on forming and maintaining contiguous boundaries; and to require certification by the State Tax Commission of limitations on allowable assessed valuation of taxable property in a revenue allocation area. 02/27 House intro - 1st rdg - to printing 02/28 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 568 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 URBAN RENEWAL 5 DISTRICT, REVENUE ALLOCATION AREA OR COMPETITIVELY DISADVANTAGED BORDER 6 COMMUNITY AREA SHALL NOT AFFECT THE ORIGINALLY ESTABLISHED DATE OF DURA- 7 TION AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 50-2905, IDAHO 8 CODE, TO REQUIRE ADDITIONAL INFORMATION IN THE PLAN SUBMITTED BY AN URBAN 9 RENEWAL AGENCY TO THE LOCAL GOVERNING BODY AND TO MAKE TECHNICAL CORREC- 10 TIONS; AMENDING SECTION 50-2907, IDAHO CODE, TO REQUIRE A CERTIFIED REPORT 11 TO BE SUBMITTED TO THE COUNTY CLERK AND THE STATE TAX COMMISSION BY JANU- 12 ARY 10 OF EACH YEAR, TO REQUIRE VERIFICATION BY THE STATE TAX COMMISSION 13 OR THE COUNTY COMMISSIONERS OF COMPLIANCE WITH LAW REGARDING THE LIMITA- 14 TION ON THE BASE ASSESSMENT ROLL OF A REVENUE ALLOCATION AREA AND TO PRO- 15 VIDE A PROCEDURE IF A REVENUE ALLOCATION AREA IS NOT IN COMPLIANCE; AND 16 AMENDING SECTION 63-215, IDAHO CODE, TO PROVIDE ADDITIONAL LIMITATIONS ON 17 FORMING AND MAINTAINING CONTIGUOUS BOUNDARIES, TO REQUIRE CERTIFICATION BY 18 THE STATE TAX COMMISSION OF LIMITATIONS ON ALLOWABLE ASSESSED VALUATION OF 19 TAXABLE PROPERTY IN A REVENUE ALLOCATION AREA AND TO PROVIDE DIRECTION TO 20 THE STATE TAX COMMISSION IF IT IS DETERMINED THAT A REVENUE ALLOCATION 21 AREA IS NOT IN 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 urban renewal 41 district, a revenue allocation area or a competitively disadvantaged border 42 community area shall be interpreted to or shall cause an extension of the date 43 of the twenty-four (24) year limit that was originally established for the 2 1 district or area. Notwithstanding these limitations, tThe duration of the rev- 2 enue allocation financing provision may be extended if: 3 (1) The maturity date of any bonds issued to provide funds for a specific 4 project in the revenue allocation area and payable from the revenue allocation 5 financing provision exceeds the duration of the revenue allocation financing 6 provision, provided such bond maturity is not greater than thirty (30) years; 7 or 8 (2) The urban renewal agency determines that it is necessary to refinance 9 outstanding bonds payable from the revenue allocation financing provision to a 10 maturity exceeding the twenty-four (24) year duration of the revenue alloca- 11 tion financing provision in order to avoid a default on the bonds; or 12 (3) The local governing body has adopted an urban renewal plan or compet- 13 itively disadvantaged border community area ordinance or an amendment to an 14 urban renewal plan or competitively disadvantaged border community area ordi- 15 nance prior to July 1, 2000, in which is defined the duration of the plan 16 beyond a period of twenty-four (24) years, in which case the revenue alloca- 17 tion provision shall have a duration as described in such urban renewal plan 18 or competitively disadvantaged border community area ordinance; and 19 (4) During the extensions set forth in subsections (1) and (2) of this 20 section, any revenue allocation revenues exceeding the amount necessary to 21 repay the bonds during the period exceeding the twenty-four (24) year maturity 22 of the revenue allocation financing provision shall be returned to the taxing 23 districts in the revenue allocation area on a pro rata basis. 24 SECTION 2. That Section 50-2905, Idaho Code, be, and the same is hereby 25 amended to read as follows: 26 50-2905. RECOMMENDATION OF URBAN RENEWAL AGENCY. In order to implement 27 the provisions of this chapter, the urban renewal agency of the municipality 28 shall prepare and adopt a plan for each revenue allocation area and submit the 29 plan and recommendation for approval thereof to the local governing body. The 30 plan shall include:a statement listing:31 (1) A statement describing the value of the base assessment roll of the 32 revenue allocation area, the increment value for the first year, the current 33 total assessed valuation of all taxable property within the revenue allocation 34 area and the total assessed valuation of all taxable property within the 35 municipality. 36 (2) A statement listing tThe kind, number, and location of all proposed 37 public works or improvements within the revenue allocation area; 38 (23) An economic feasibility study; 39 (34) A detailed list of estimated project costs; 40 (45) A fiscal impact statement showing the impact of the revenue alloca- 41 tion area, both until and after the bonds are repaid, upon all taxing dis- 42 tricts levying taxes upon property on the revenue allocation area; and 43 (56) A description of the methods of financing all estimated project 44 costs and the time when related costs or monetary obligations are to be incur- 45 red. 46 (67) A termination date for the plan and the revenue allocation area as 47 provided for in section 50-2903(20), Idaho Code. In determining the termina- 48 tion date, the plan shall recognize that the agency shall receive allocation 49 of revenues in the calendar year following the last year of the revenue allo- 50 cation provision described in the urban renewal plan. 51 (78) A description of the disposition or retention of any assets of the 52 agency upon the termination date. Provided however, nothing herein shall pre- 53 vent the agency from retaining assets or revenues generated from such assets 3 1 as long as the agency shall have resources other than revenue allocation funds 2 to operate and manage such assets. 3 SECTION 3. That Section 50-2907, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 50-2907. TRANSMITTAL OF REVENUE ALLOCATION AREA DESCRIPTION AND OTHER 6 DOCUMENTS TO TAXING AGENCIES -- FILING ANNUAL REPORT WITH COUNTY CLERK AND 7 STATE TAX COMMISSION. (1) After the effective date of an ordinance enacted by 8 the local governing body of an authorized municipality, the clerk of the 9 authorized municipality shall transmit, to the county auditor and tax assessor 10 of the county in which the revenue allocation area is located, to the affected 11 taxing districts, and to the state tax commission, a copy of the ordinance 12 enacted, a copy of the legal description of the boundaries of the revenue 13 allocation area, and a map indicating the boundaries of the revenue allocation 14 area. 15 (2) For revenue allocation areas extending beyond the corporate municipal 16 boundary of the authorized municipality, the copy of the ordinance enacted by 17 the authorized municipality shall include, as an attachment, a copy of the 18 transfer of powers ordinance adopted by the cooperating county under section 19 50-2906(3)(b), Idaho Code. 20 (3) An urban renewal agency shall file a report by January 10 of each 21 year with the county clerk and the state tax commission which states the value 22 of the base assessment roll, the increment value, the current total assessed 23 valuation of all taxable property within the revenue allocation area and the 24 total assessed valuation of all taxable property within the municipality. The 25 report shall use the most current available values. 26 (a) The report shall accompany any required filing with the state tax 27 commission regarding the initial formation of an urban renewal area or a 28 competitively disadvantaged border community area and any required filing 29 regarding the expansion of a revenue allocation area. 30 (b) Such submittals to the county clerk and the state tax commission 31 shall be certified by either the county assessor, the county treasurer or 32 a certified public accountant. The report issued with the certification 33 shall state whether or not the revenue allocation area is in compliance 34 with the ten percent (10%) limitation requirement specified in section 35 50-2903(15), Idaho Code. 36 (c) The state tax commission or the county commissioners shall not permit 37 the reallocation of revenue when the revenue allocation area does not com- 38 ply with section 50-2903(15), Idaho Code, and shall include the increment 39 value in the value of the base assessment roll. 40 (d) When the annual report indicates the revenue allocation area does not 41 comply with the requirements of section 50-2903(15), Idaho Code, the state 42 tax commission or the county commissioners shall suspend the reallocation 43 of tax revenue for the following year and shall include the increment 44 value in the base assessment roll unless, by September 1 of the following 45 year, the revenue allocation area has been brought into compliance with 46 section 50-2903(15), Idaho Code. Notice of the pending suspension by the 47 state tax commission or the county commissioners of the reallocation of 48 tax revenue shall be made to the urban renewal agency by certified mail. 49 Such notice shall be sent within thirty (30) days of receipt of the annual 50 report from the urban renewal agency. 51 (4) Such documents shall be transmitted within the time required by sec- 52 tion 63-215, Idaho Code. 4 1 SECTION 4. That Section 63-215, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 63-215. LEGAL DESCRIPTION AND MAP OF BOUNDARIES TO BE RECORDED AND FILED. 4 (1) Any taxing district which shall be formed or organized hereafter, or which 5 shall change any existing boundaries hereafter, shall cause one (1) copy of 6 the legal description and map prepared in a draftsmanlike manner which shall 7 plainly and clearly designate the boundaries of such district or municipality 8 as formed or organized, or as altered, to be recorded with the county 9 recorder and filed with the county assessor in the counties within which the 10 unit is located and with the state tax commission within thirty (30) days fol- 11 lowing the effective date of such formation, organization or alteration but no 12 later than the tenth day of January of the year following such formation, 13 organization or alteration. In the case of fire protection districts, the 14 board of county commissioners approving the boundaries shall be responsible 15 for delivering to the assessor and recorder the map and legal description of 16 the amended district boundaries. 17 (2) Urban renewal agencies shall comply with the requirements of subsec- 18 tion (1) of this section when a revenue allocation area within the jurisdic- 19 tion of the urban renewal agency is formed or when the boundaries of such an 20 area are altered. 21 (3) The county assessor, county auditor and state tax commission shall 22 retain on file in their respective offices all copies of legal descriptions of 23 taxing district boundaries and maps filed by the various taxing jurisdictions 24 authorized to impose a levy on property. 25 (4) The state tax commission shall be responsible for providing copies of 26 uniform tax code area numbers and maps to the county assessor, county auditor 27 and county treasurer and various companies having operating property subject 28 to assessment in the state of Idaho and under the jurisdiction of the state 29 tax commission for assessment and taxation purposes. 30 (5) Unless otherwise specifically authorized to form with noncontiguous 31 boundaries, or to annex or de-annex properties so as to make noncontiguous 32 boundaries, all taxing districts, urban renewal areas and competitively disad- 33 vantaged border community areas shall form with and maintain contiguous bound- 34 aries. Furthermore, no taxing district, urban renewal area or competitively 35 disadvantaged border community area shall be permitted to annex land that will 36 be connected to the annexing district or area only by a shoestring or strip of 37 land upon a public highway. 38 (6) The state tax commission, upon receipt of the filing required in sub- 39 section (2) of this section, shall review such filing and certify that the 40 base assessment roll of any newly formed revenue allocation area, or any reve- 41 nue allocation area whose boundaries have been altered, does not exceed ten 42 percent (10%) of the current assessed valuation of all taxable property within 43 the municipality as required by the provisions of section 50-2903(15), Idaho 44 Code. The state tax commission shall proceed as directed in section 45 50-2907(3), Idaho Code, if it is determined that a revenue allocation area is 46 not in compliance.
STATEMENT OF PURPOSE
RS 17804C2
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
Name: Rep. Phil Hart
Phone: 208.332.1000
STATEMENT OF PURPOSE/FISCAL NOTE H 568