LB25 LB25
2021 2021
LEGISLATIVE BILL 25
Approved by the Governor March 17, 2021
Introduced by Wayne, 13.
A BILL FOR AN ACT relating to the Community Development Law; to amend sections
18-2101.02 and 18-2147, Revised Statutes Cumulative Supplement, 2020; to change the period for dividing ad valorem taxes for certain redevelopment plans that include extremely blighted areas; to harmonize provisions; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 18-2101.02, Revised Statutes Cumulative Supplement,
2020, is amended to read:
18-2101.02 (1) For any city that (a) intends to carry out a redevelopment project which will involve the construction of workforce housing in an extremely blighted area as authorized under subdivision (28)(g) of section
18-2103, (b) intends to prepare a redevelopment plan that will divide ad
valorem taxes for a period of more than fifteen years but not more than twenty years as provided in subdivision (3)(b) of section 18-2147, (c) intends to
declare an area as an extremely blighted area for purposes of funding decisions under subdivision (1)(b) of section 58-708, or (d) (c) intends to declare an
area as an extremely blighted area in order for individuals purchasing residences in such area to qualify for the income tax credit authorized in
subsection (7) of section 77-2715.07, the governing body of such city shall first declare, by resolution adopted after the public hearings required under this section, such area to be an extremely blighted area.
(2) Prior to making such declaration, the governing body of the city shall conduct or cause to be conducted a study or an analysis on whether the area is
extremely blighted and shall submit the question of whether such area is
extremely blighted to the planning commission or board of the city for its review and recommendation. The planning commission or board shall hold a public hearing on the question after giving notice of the hearing as provided in
section 18-2115.01. The planning commission or board shall submit its written recommendations to the governing body of the city within thirty days after the public hearing.
(3) Upon receipt of the recommendations of the planning commission or
board, or if no recommendations are received within thirty days after the public hearing required under subsection (2) of this section, the governing body shall hold a public hearing on the question of whether the area is
extremely blighted after giving notice of the hearing as provided in section
18-2115.01. At the public hearing, all interested parties shall be afforded a reasonable opportunity to express their views respecting the proposed declaration. After such hearing, the governing body of the city may make its declaration.
(4) Copies of each study or analysis conducted pursuant to subsection (2)
of this section shall be posted on the city's public web site or made available for public inspection at a location designated by the city.
(5) The study or analysis required under subsection (2) of this section may be conducted in conjunction with the study or analysis required under section 18-2109. The hearings required under this section may be held in
conjunction with the hearings required under section 18-2109.
Sec. 2. Section 18-2147, Revised Statutes Cumulative Supplement, 2020, is amended to read:
18-2147 (1) Any redevelopment plan as originally approved or as later modified pursuant to section 18-2117 may contain a provision that any ad
valorem tax levied upon real property, or any portion thereof, in a redevelopment project for the benefit of any public body shall be divided, for the applicable period described in subsection (3) of this section, as follows:
(a) That portion of the ad valorem tax which is produced by the levy at
the rate fixed each year by or for each such public body upon the redevelopment project valuation shall be paid into the funds of each such public body in the same proportion as are all other taxes collected by or for the body. When there is not a redevelopment project valuation on a parcel or parcels, the county assessor shall determine the redevelopment project valuation based upon the fair market valuation of the parcel or parcels as of January 1 of the year prior to the year that the ad valorem taxes are to be divided. The county assessor shall provide written notice of the redevelopment project valuation to
the authority as defined in section 18-2103 and the owner. The authority or
owner may protest the valuation to the county board of equalization within thirty days after the date of the valuation notice. All provisions of section
77-1502 except dates for filing of a protest, the period for hearing protests,
and the date for mailing notice of the county board of equalization's decision are applicable to any protest filed pursuant to this section. The county board of equalization shall decide any protest filed pursuant to this section within thirty days after the filing of the protest. The county clerk shall mail a copy of the decision made by the county board of equalization on protests pursuant to this section to the authority or owner within seven days after the board's
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LB25 LB25
2021 2021
decision. Any decision of the county board of equalization may be appealed to
the Tax Equalization and Review Commission, in accordance with section 77-5013,
within thirty days after the date of the decision;
(b) That portion of the ad valorem tax on real property, as provided in
the redevelopment contract, bond resolution, or redevelopment plan, as applicable, in the redevelopment project in excess of such amount, if any,
shall be allocated to and, when collected, paid into a special fund of the authority to be used solely to pay the principal of, the interest on, and any premiums due in connection with the bonds of, loans, notes, or advances of
money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such authority for financing or refinancing, in whole or in part,
the redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness, including interest and premiums due, have been paid, the authority shall so notify the county assessor and county treasurer and all ad
valorem taxes upon taxable real property in such a redevelopment project shall be paid into the funds of the respective public bodies. An authority may use a single fund for purposes of this subdivision for all redevelopment projects or
may use a separate fund for each redevelopment project; and
(c) Any interest and penalties due for delinquent taxes shall be paid into the funds of each public body in the same proportion as are all other taxes collected by or for the public body.
(2) To the extent that a redevelopment plan authorizes the division of ad valorem taxes levied upon only a portion of the real property included in such redevelopment plan, any improvements funded by such division of taxes shall be
related to the redevelopment plan that authorized such division of taxes.
(3)(a) For redevelopment plans that receive an expedited review under section 18-2155, ad valorem taxes shall be divided for a period not to exceed ten years after the effective date as identified in the redevelopment plan.
(b) For any redevelopment plan for which more than fifty percent of the property in the redevelopment project area has been declared an extremely blighted area in accordance with section 18-2101.02, ad valorem taxes shall be
divided for a period not to exceed twenty years after the effective date as
identified in the project redevelopment contract or in the resolution of the authority authorizing the issuance of bonds pursuant to section 18-2124.
(c) (b) For all other redevelopment plans, ad valorem taxes shall be
divided for a period not to exceed fifteen years after the effective date as
identified in the project redevelopment contract or in the resolution of the authority authorizing the issuance of bonds pursuant to section 18-2124.
(4) The effective date of a provision dividing ad valorem taxes as
provided in subsection (3) of this section shall not occur until such time as
the real property in the redevelopment project is within the corporate boundaries of the city. This subsection shall not apply to a redevelopment project involving a formerly used defense site as authorized in section
18-2123.01.
(5) Beginning August 1, 2006, all notices of the provision for dividing ad
valorem taxes shall be sent by the authority to the county assessor on forms prescribed by the Property Tax Administrator. The notice shall be sent to the county assessor on or before August 1 of the year of the effective date of the provision. Failure to satisfy the notice requirement of this section shall result in the taxes, for all taxable years affected by the failure to give notice of the effective date of the provision, remaining undivided and being paid into the funds for each public body receiving property taxes generated by
the property in the redevelopment project. However, the redevelopment project valuation for the remaining division of ad valorem taxes in accordance with subdivisions (1)(a) and (b) of this section shall be the last certified valuation for the taxable year prior to the effective date of the provision to
divide the taxes for the remaining portion of the ten-year, twenty-year, or fifteen-year period pursuant to subsection (3) of this section.
Sec. 3. Original sections 18-2101.02 and 18-2147, Revised Statutes Cumulative Supplement, 2020, are repealed.
Sec. 4. Since an emergency exists, this act takes effect when passed and approved according to law.
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Statutes affected:
Introduced: 18-2101.02, 18-2147
Final Reading: 18-2101.02, 18-2147
Slip Law: 18-2101.02, 18-2147