Tax Increment Finance (TIF) Heats Up

by Davis Brown Law Firm
Contact

Tax Increment Finance continues to be a hot topic at the capitol. The House has its bill, HF2460, on the calendar for debate in the House. Many groups interested in economic development are following this legislation and are opposed to some of the significant changes proposed in the bill. The current House version contains many provisions altering TIF including:

  • New reporting and auditing requirements.
  • Anti-piracy provisions to prevent competition with neighboring communities using TIF incentives.
  • A city would not be able to create or modify an urban renewal area encompassing more than 25 percent of the aggregate taxable value of all taxable property in the city.
  • A city must hold three public hearings before voting on a new TIF plan, must issue notice to all taxing entities affected, and must publish notice of all three hearings, including a description of the resolution(s) in the notice published.
  • Affected taxing entities must vote to support or oppose the project.
  • Once an area is established a blighted, slum, or economic development urban renewal area, the type of urban renewal area can never be changed.
  • Detailed findings must be made (a “but for analysis”) before establishing a new economic development TIF.
  • Any economic development TIFs without an end date (pre-1995) must end by 2032, or apply for a waiver from the Department of Management.
  • Sunsets all slum and blight TIFs.
  • All new TIF projects are limited to 15 years, and can add another 5 years only with the approval of all other affected taxing entities.
  • TIF cannot be used for public buildings (whether built or leased), movable property or equipment or employee costs.
  • TIF cannot be used for residential projects in a city over 10,000 in population, and can only be used for cities under 10,000 if new requirements are met.
  • Repeals local option sales tax TIF.
  • Prohibits the use of TIF on wind farms.

The Senate is also working on their version of a TIF bill, but language has not been completed. It will be different than the House version. There continue to be discussions among legislators about how far to go in changing TIF, and what a compromise bill might be.

The automated traffic enforcement camera ban (HF2450) which eeked past the second funnel by being assigned to the funnel-proof appropriations committee came to the floor this week in the House. The bill was debated, and passed on the floor 58-42, and went to the Senate where it was assigned to the Transportation Committee. The ban bill will likely not move any further this session.

The House passed SF2217, which now goes to the Governor. The bill authorizes a city, county or joint powers entity formed under Iowa Code Chapter 28E to use sales tax increment revenue to pay for the costs of flood projects, including principal and interest on bonds issued to fund a flood project. A flood project includes levees, embankments, impounding reservoirs, or conduits that are necessary for the protection of property from the effects of floodwaters. A project may also include deepening, widening, alteration, change, diversion, or other improvement of watercourses if required to protect property from the effects of floodwaters.

The bill also establishes a nine member board to establish a flood mitigation program to be administered by the homeland security and emergency management division of the department of public defense. The flood mitigation program is designed to fund projects which the board approves and funds from annual appropriations into the flood mitigation fund in the State treasurer or from sales tax increment revenue. A city, county or 28E entity receiving approval from the board for it flood project cannot finance the project with both money from the flood mitigation fund and from sales tax increment revenue.

The per diem for legislators ends on April 17th. On Thursday House and Senate leadership mentioned the possibility of adjournment within the next two weeks, although Senate leadership appeared more optimistic than the leaders in the House. Several major policy issues were worked on last week. The Senate finalized its version of education reform (SF2284) and is tentatively scheduled to debate it Monday. The House worked on the Health & Human Services budget (HF2435) but did not reach an agreement. All of the budget bills remain to be resolved - mostly in conference committee. Property tax reform took a step forward when Governor Branstad announced the he will sign an earned income tax credit bill if the legislature will approve property tax reform. Finally, both political parties appear to closer to an agreement on mental health reform.

Stay tuned as session starts heading toward a close!

 

Thomas E. Stanberry
Jessica S. Harder
Davis Brown Government Relations Report
(515) 288-2500
http://www.davisbrownlaw.com

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Davis Brown Law Firm | Attorney Advertising

Written by:

Davis Brown Law Firm
Contact
more
less

Davis Brown Law Firm on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.