§ 418.15 — Durational limitation on use of revenues — property disposition

Iowa § 418.15

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 418: FLOOD MITIGATION PROGRAM

Text

1. a. A governmental entity shall not receive remittances of sales tax revenue under this
chapter after twenty years from the date the governmental entity’s project was approved by
the board or after expiration of the additional period of years if approved under paragraph
“b” unless the remittance amount is calculated under section 418.11 based on sales subject
to the tax under section 423.2 occurring before the expiration of the twenty-year period or
expiration of the additional period of years if approved under paragraph “b”.
b. The twenty-year period for receiving remittances of sales tax revenue under this
chapter may be extended upon application by the governmental entity and approval by
the board. An application for an extension of the twenty-year period must be filed by the
governmental entity with the board prior to expiration of the twenty-year period. The board
may approve the governmental entity to receive remittances of sales tax revenue under this
chapter for an additional period of consecutive years beyond the twenty-year period if all
of the following are satisfied:
(1) The total amount of remittances actually received by the governmental entity
during the twenty-year period are less than the total amount of remittances for which
the governmental entity was approved to receive by the board at the time of the project’s
approval under section 418.9, subsection 4, and reduced under section 418.9, subsection 8,
or section 418.12, subsection 6, paragraph “b”, if applicable.
(2) The amount of the remittances approved in each additional year does not exceed
fifteen million dollars or seventy percent of the total yearly amount of increased sales
tax increment revenue in the governmental entity’s applicable area and deposited in the
governmental entity’s account, whichever is less.
(3) The total amount of remittances in any such additional fiscal year for all governmental
entities approved to use sales tax revenues under this chapter does not exceed, in the
aggregate, thirty million dollars.
(4) The total amount of remittances to the governmental entity approved by the board for
all additional years does not exceed the difference between the total amount of remittances
actually received by the governmental entity during the twenty-year period and the total
amount of remittances for which the governmental entity was approved to receive by the
board at the time of the project’s approval under section 418.9, subsection 4, and reduced
undersection418.9,subsection8,orsection418.12,subsection6,paragraph“b”,ifapplicable.
2. If the governmental entity ceases to need the sales tax revenues prior to the expiration
of the limitation under subsection 1, the governmental entity shall notify the director of
revenue.
3. Upon the receipt of a notification pursuant to subsection 2, or the expiration of the
limitation under subsection 1, the department of revenue shall cease to deposit revenues into
the governmental entity’s account in the sales tax increment fund.
4. All property and improvements acquired by a governmental entity as defined in section
418.1, subsection 4, paragraph “c”, relating to a project shall be transferred to the county,
city, drainage district, sanitary district, or combined water and sanitary district designated in
the chapter 28E or 28F agreement to receive such property and improvements. The county,
city, drainage district, sanitary district, or combined water and sanitary district to which such

propertyorimprovementsaretransferredshall, unlessotherwiseprovidedinthechapter28E
or 28F agreement, be solely responsible for the ongoing maintenance and support of such
property and improvements.