Sponsor: McLuckie, Steve (44) Effective Date:00/00/00
CoSponsor:Kauffman, Sandra D. (45) LR Number:1706-01
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar

Available Bill Summaries for HB746
| Introduced |

Available Bill Text for HB746
| Introduced |

Available Fiscal Notes for HB746
| Introduced |



HB 746 -- Community Improvement Districts

Co-Sponsors:  McLuckie, Kauffman

This bill authorizes the establishment of community improvement
districts (CID's) for the purpose of providing a broad array of
public improvements within a specified area.  After receipt of a
proper petition from a majority of property owners within the
proposed district, and after a public hearing is held, any city
may establish a CID.  The CID may be established as a political
subdivision or as a not-for-profit corporation.  The city clerk
is to report the creation of any CID to the Department of
Economic Development (DED).

Each CID is to be governed by a board of between 5 and 30
directors, who must be property or business owners, or
registered voters in the district.  The bill outlines how the
directors are appointed or elected.  The board is required to
submit an annual budget to the city, and to report to the city
clerk and the DED on the CID revenues, expenditures and services

The powers of the CID are outlined and include the power to (1)
levy and collect special assessments; (2) levy real property and
business license taxes, and impose sales taxes if the CID is a
political subdivision; (3) enter into agreements with the city
for public nuisance abatement; (4) construct, repair or provide
assistance on a variety of public improvements; and (5) exercise
implied powers which are not inconsistent with the stated
powers.  If an area is determined to be blighted, as defined in
the bill, the CID is granted additional powers, including the
power to demolish or renovate existing buildings and structures.

CID's may also borrow money and issue 20 year bond, to carry out
any of its duties and to refund previously issued obligations.
CID obligations are payable from the district's revenues and
secured by property within the district.  Obligations issued by
a CID set up as a political subdivision are exempt from
taxation.  The city, Land Clearance for Redevelopment Authority,
Port Authority, Tax Increment Financing Commission, Industrial
Development Authority, and the Planned Industrial Expansion
Authority may issue obligations in order to loan money to the

All CID's may levy special assessments, but only CID's
established as political subdivisions may levy taxes within the
district.  CID's may levy variable real estate taxes and special
assessments on property based on the level of benefit derived
from the public improvements.  However, any sales taxes which
are imposed must be uniformly levied throughout the district.
Provisions for collecting any assessments or taxes levied are

Upon receipt of a proper petition, the CID may levy special
assessments on real property;  these constitute a debt and
perpetual lien against the properties assessed.  The CID's
authority to levy special assessments is independent of the
limitations and authorities of the city in which it is located.
The district may assess at a rate lower than the rate ceiling
specified in the petition, and may increase this lower rate up
to the ceiling without further approval.  The district may not
change or lower the assessment if by doing so the ability of the
CID to repay its debts is jeopardized.  Funds from special
assessments not needed for current expenditures may be invested
by the CID board.

The CID may by resolution impose a tax on real property, impose
a sales tax of up to 1% on all retail sales of personal property
or taxable services within the district, and impose a license
tax on businesses and individuals doing business within the
district, if these taxes are approved by a majority of qualified
voters in a mail-in election.  Qualified voters are registered
voters, or the owners of real property if no registered voters
reside in the CID.  A rate lower than the ceiling approved by
voters for the property tax and business license tax may be
levied; this lower rate may be increased up to the ceiling
without further voter approval.  Any of the taxes levied,
including a sales tax, may not be changed or lowered if by doing
so the ability of the CID to repay its debts is jeopardized.

Provisions for the mail-in election required for any of the tax
levies are outlined.  The CID board is to file a resolution with
the city clerk, requesting an election for the purposes of
approving or disapproving a CID-levied property, business
license or sales tax.  The city clerk is required to set a date
for the election and to twice publish a notice of the upcoming
election in a general circulation newspaper.  Ballots are mailed
to qualified voters, who may return their ballots by mail or in
person.  All ballots are given by the city clerk to a team of at
least 4 election judges.  The CID is required to reimburse the
city clerk for any election-related costs.


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Last Updated August 11, 1997 at 4:19 pm