Section 99.960

There are multiple enactments of 99.960

Title VII CITIES, TOWNS AND VILLAGES

Chapter 99

Effective - 28 Aug 2026, 3 histories, see footnote   

  99.960.  Disbursement of project costs, approval of department required — application, contents — finance board to make determination — cap on disbursements — time limitations on disbursements — development project costs — projects ineligible for TIFs, when — rulemaking authority. — 1.  A municipality shall submit an application to the department for review and a determination as to approval of the disbursement of the project costs of one or more development projects or expanded development projects, as applicable, from the state supplemental downtown development fund.  In no event shall any approval authorize a disbursement of one or more development projects or expanded development projects, as applicable, from the state supplemental downtown development fund which exceeds the allowable amount of other net new revenues derived from the development area or expanded development area, as applicable.  An application submitted to the department shall contain the following, in addition to the items set forth in section 99.942:

  (1)  A certification that for a minimum of twenty-five years one hundred percent of the payments in lieu of taxes and economic activity taxes and, for development projects approved after August 28, 2026, for which the municipality is applying to the department for state residential income tax increment and for expanded development projects, if applicable under subsection 6 of section 99.957, one hundred percent of the municipal residential earnings tax increment, deposited to the special allocation fund must and will be used to pay development project costs or expanded development project costs, as applicable, or obligations issued to finance development project costs or expanded development project costs, as applicable, to achieve the objectives of the development plan or expanded development plan, as applicable.  Contributions to the development project or expanded development project, as applicable, from any private not-for-profit organization or local contributions from tax abatement or other sources may be substituted on a dollar-for-dollar basis for the local match of one hundred percent of payments in lieu of taxes, economic activity taxes, and the municipal residential earnings tax increment from the fund;

  (2)  Identification of the existing businesses located within the development project area or expanded development project area, as applicable, and the development area or expanded development area, as applicable;

  (3)  The aggregate baseline year amount of state sales tax revenues and the aggregate baseline year amount of state income tax withheld on behalf of existing employees, reported by existing businesses within the development project area or expanded development project area, as applicable.  Provisions of section 32.057 notwithstanding, municipalities will provide this information to the department of revenue for verification.  The department of revenue will verify the information provided by the municipalities within forty-five days of receiving a request for such verification from a municipality;

  (4)  An estimate of the state sales tax increment and state income tax increment within the development project area or expanded development project area, as applicable, after redevelopment;

  (5)  If the municipality seeks state residential income tax increment to be included in other net new revenues:

  (a)  The total number of natural persons residing in the expanded development area and each expanded development project area in the baseline year, if state residential income tax increment is sought to be included in other net new revenues;

  (b)  An estimate of the number of primarily residential buildings and the number of residential units in such buildings to be in the development area and each development project area or expanded development area and each expanded development project area, as applicable, regardless of the inclusion of mixed uses within a portion of the building after redevelopment;

  (c)  An estimate of the occupancy rate for each residential building and total projected income for natural persons residing in leased or occupied residential units in the development area and each development project area or the expanded development area and each expanded development project area, as applicable, after redevelopment; and

  (d)  An estimate of the state residential income tax increment within the development area and each development project area or expanded development area and each expanded development project area, as applicable, after redevelopment;

  (6)  The identity of the developer, and for an expanded development area, if an affiliate of the developer of the development area, documentation substantiating the relationship;

  (7)  An affidavit that is signed by the developer or developers attesting that the provision of subdivision (2) of subsection 3 of section 99.942 has been met and specifying that the development area would not be reasonably anticipated to be developed without the appropriation of the other net new revenues.  For expanded development areas, the affidavit shall apply to the development area and the associated expanded development area together;

  (8)  The amounts and types of other net new revenues sought by the applicant to be disbursed from the state supplemental downtown development fund over the term of the development plan or expanded development plan, as applicable;

  (9)  The methodologies and underlying assumptions used in determining the estimate of the state sales tax increment, the state income tax increment, and the state residential income tax increment if requested; and

  (10)  Any other information reasonably requested by the department.

  2.  The department shall make all reasonable efforts to process applications within sixty days of receipt of the application.

  3.  The department shall make a determination regarding the application for a certificate allowing disbursements from the state supplemental downtown development fund.  In no event shall the amount of disbursements from the state supplemental downtown development fund approved for a project, in addition to any other state economic development funding or other state incentives, exceed the projected state benefit of the development project or expanded development project, as applicable, as determined by the department through a cost-benefit analysis.  Any political subdivision located either wholly or partially within the development area shall be permitted to submit information to the department for consideration in its cost-benefit analysis.  Upon approval of state supplemental downtown development financing, a certificate of approval shall be issued by the department containing the terms and limitations of the disbursement.

  4.  At no time shall the annual amount of other net new revenues approved for disbursements from the state supplemental downtown development fund exceed one hundred eight million dollars.

  5.  Development projects or expanded development projects, as applicable, receiving disbursements from the state supplemental downtown development fund shall be limited to receiving such disbursements for fifteen years, unless specific approval for a longer term is given by the director of the department, as set forth in the certificate of approval; except that, in no case shall the duration exceed thirty years.  The department shall not approve a duration of other net new revenues in excess of the number of years that the municipality has allocated economic activity taxes and, if applicable, municipal residential income tax, to the development project or expanded development project, as applicable.  The approved term notwithstanding, state supplemental downtown development financing shall terminate when development financing for a development project or expanded development project, as applicable, is terminated by a municipality.

  6.  The municipality shall deposit payments received from the state supplemental downtown development fund in a separate segregated account for other net new revenues within the special allocation fund.

  7.  Development project costs or expanded development project costs, as applicable, may include, at the prerogative of the state, the portion of salaries and expenses of the department and the department of revenue reasonably allocable to each development project or expanded development project, as applicable, approved for disbursements from the state supplemental downtown development fund for the ongoing administrative functions associated with such development project or expanded development project, as applicable.  Such amounts shall be recovered from other net new revenues deposited into the state supplemental downtown development fund created pursuant to section 99.963.

  8.  A development project or expanded development project, as applicable, approved for state supplemental downtown development financing may not thereafter elect to receive tax increment financing pursuant to the real property tax increment allocation redevelopment act, sections 99.800 to 99.865, and continue to receive state supplemental downtown development financing pursuant to sections 99.915 to 99.980.

  9.  The department may establish the procedures and standards for the determination and approval of applications by the promulgation of rules and regulations and publish forms to implement the provisions of this section and section 99.963.

  10.  Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section and section 99.963 shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.  This section, section 99.963, and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.

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(L. 2003 H.B. 289, A.L. 2005 S.B. 343, A.L. 2026 H.B. 3231 & 2531)