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
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.
