Iowa Administrative Code › Agency 261 - Economic Development Authority › Part X - Rural Housing Needs Assessment Grant Program › Chapter 200 - Reinvestment Districts Program › Rule 261-200.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter unless the context otherwise
				  requires:
"Account"
means the district account that is
				  created within the fund for each municipality which has established a district
				  and that holds the new tax revenues deposited by the department under the
				  program. Moneys in each account will be remitted quarterly by the department to
				  the municipality pursuant to the department of revenue's rules in 701-Chapter
				  237.
"Applicant"
means a municipality applying to
				  the board and the authority for approval of a district under the program,
				  including the preapplication process described in rule
				  261-200.4 (15J).
"Appurtenant structure "
means any building
				  or other fixture on a piece of real estate other than the main building
				  provided that such a building or fixture is permanent, is wholly or partially
				  above grade, and will be constructed or substantially improved in conjunction
				  with the main building. A structure is appurtenant when the structure is
				  physically connected to a main building such that the connected structures
				  combine to create a single, integrated facility. A structure is not physically
				  connected if the structure has a function or purpose independent of the main
				  building, even if the structures are in close proximity or are incidentally
				  connected by some means such as a common wall, a sidewalk, or recreational
				  trail.
"Authority"
means the economic development
				  authority created in Iowa Code section
				  15.105.
"Board"
means the members of the economic
				  development authority appointed by the governor and in whom the powers of the
				  authority are vested pursuant to Iowa Code section
				  15.105.
"Commencement date "
means the date
				  established for each district by the board pursuant to rule
				  261-200.7 (15J) upon which the
				  calculation of new state sales tax and new state hotel and motel tax revenue
				  shall begin pursuant to rule
				  701-237.3 (15 J) and after which
				  the department will make deposits in the fund pursuant to rule
				  701-237.4 (15J).
"Department"
means the department of
				  revenue.
"Director "
means the director of the
				  authority.
"District"
means the area that is designated
				  a reinvestment district under the program. For purposes of this chapter, a
				  district is designated during the application and approval process but is not
				  created until it has both received the final approval of the board pursuant to
				  rule 261-200.7 (15 J) and been
				  established by ordinance or resolution of the municipality as described in rule
				  261-200.8 (15 J).
"Due diligence committee "
means the due
				  diligence committee of the board established pursuant to 261-subrule
				  1.3(7).
"Fund"
means the state reinvestment district
				  fund created in Iowa Code section
				  15J.6,
				  consisting of new tax revenues, and under the control of the department.
"Governing body"
means the county board of
				  supervisors, city council, or other governing body in which the legislative
				  powers of the municipality are vested.
"Joint board"
means a legal entity
				  established or designated in an agreement between two or more contiguous
				  counties or incorporated cities pursuant to Iowa Code chapter 28E.
"Maximum benefit amount"
means the total
				  amount of new tax revenues that may be remitted to a municipality's
				  reinvestment project fund and used for development in a district. The maximum
				  benefit will be established by the board when a final application to the
				  program is approved pursuant to rule
				  261-200.7 (15J).
"Municipality"
means a county, an
				  incorporated city, or a joint board.
"New lessor"
means a lessor, as defined in
				  Iowa Code section
				  423A.2, operating a
				  business in the district that was not in operation in the area of the district
				  before the effective date of the ordinance or resolution establishing the
				  district, regardless of ownership. "New lessor" also includes any lessor, as
				  defined in Iowa Code section 423 A.2, operating a business in the district if
				  the place of business for that business is the subject of a project that was
				  approved by the board.
"New retail establishment"
means a business
				  operated in the district by a retailer, as defined in Iowa Code section
				  423.1, that was not
				  in operation in the area of the district before the effective date of the
				  ordinance or resolution establishing the district, regardless of ownership.
				  "New retail establishment" also includes any business operated in the district
				  by a retailer, as defined in Iowa Code section
				  423.1, if the place
				  of business for that retail establishment is the subject of a project that was
				  approved by the board.
"New tax revenues "
means all state sales
				  tax revenues and state hotel and motel tax revenues that are collected within a
				  district by new retail establishments and new lessors, provided that such new
				  retail establishments and lessors are included as projects in an approved
				  district plan. New tax revenues are remitted to the department after collection
				  by new retail establishments and new lessors and deposited by the department in
				  a fund for use by a municipality under the program.
"Program "
means the reinvestment district
				  program established pursuant to this chapter.
"Project"
means a vertical improvement
				  constructed or substantially improved within a district using new tax revenues.
				  "Project" does not include any of the following:
1. A building, structure, or other facility that is in whole
				  or in part used or intended to be used to conduct gambling games under Iowa
				  Code chapter 99F.
2. A building, structure, or other facility that is in whole
				  or in part used or intended to be used as a hotel or motel if such hotel or
				  motel is connected to or operated in conjunction with a building, structure, or
				  other facility described in paragraph "1" above.
"Retail business "
means any business
				  engaged in the business of selling tangible personal property or taxable
				  services at retail in this state that is obligated to collect state sales or
				  use tax under Iowa Code chapter 423. However, for the purposes of this chapter,
				  "retail business" does not include a new lessor or a business engaged in an
				  activity subject to tax under Iowa Code section
				  423.2(3).
"State hotel and motel tax"
means the
				  state-imposed tax under Iowa Code section 423 A.3.
"State sales tax"
means the sales and
				  services tax imposed pursuant to Iowa Code section
				  423.2.
"Substantially improved"
means that the cost
				  of the improvements to a project is equal to or exceeds 50 percent of the
				  assessed value of the property, excluding the land, prior to such
				  improvements.
"Unique nature"
means a quality or qualities
				  of the projects to be developed in a district which, when considered in the
				  entirety, will substantially distinguish the district's projects from other
				  existing or proposed developments in the state. For purposes of this chapter,
				  whether a project is of a unique nature is a subjective and contextual
				  determination that will be made by the board. In determining whether a project
				  is of a unique nature, the board will not necessarily require a project to be
				  entirely without precedent or to be the only one of its kind in the state, but
				  rather the board will evaluate whether the projects to be undertaken in a
				  district will either (1) permanently transform the aesthetics or infrastructure
				  of a local community for the better, including by preserving important
				  historical structures or neighborhoods; or (2) contribute substantially more to
				  the state's economy or quality of life than other similar projects in the
				  state.
"Vertical improvement"
means a building that
				  is wholly or partially above grade and all appurtenant structures to the
				  building.