Amends existing law to revise provisions regarding the withdrawal of certain taxing districts from an urban renewal revenue allocation area financing provision.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 670 BY REVENUE AND TAXATION COMMITTEE AN ACT1 RELATING TO URBAN RENEWAL; AMENDING SECTION 50-2906, IDAHO CODE, TO REVISE2 A PROVISION REGARDING SPECIAL RULES FOR CERTAIN TAXING DISTRICTS; AND3 DECLARING AN EMERGENCY.4

Be It Enacted by the Legislature of the State of Idaho:5

SECTION 1. That Section 50-2906, Idaho Code, be, and the same is hereby6 amended to read as follows:7 50-2906. PUBLIC HEARING AND ORDINANCE REQUIRED -- SPECIAL RULES FOR8 CERTAIN TAXING DISTRICTS. (1) To adopt a new urban renewal plan or create9 a competitively disadvantaged border community area containing a revenue10 allocation financing provision, the local governing body of an authorized11 municipality must enact an ordinance in accordance with chapter 9, title 50,12 Idaho Code, and section 50-2008, Idaho Code. To modify an existing urban13 renewal plan, to add or change a revenue allocation, an authorized munici-14 pality must enact an ordinance in accordance with chapter 9, title 50, Idaho15 Code, and conduct a public hearing as provided in section 50-2008(c), Idaho16 Code. No urban renewal project, plan, competitively disadvantaged border17 community area or modification thereto, or revenue allocation financial18 provision shall be held ineffective for failure to comply with the require-19 ments of this section if compliance with the section is substantial and in20 good faith and administrative authority of both the local governing body21 and urban renewal agency does not extend beyond the municipal boundary of22 the authorized municipality. Urban renewal plans and revenue allocation23 financing provisions may be held ineffective if an urban renewal area or rev-24 enue allocation area extends outside the municipal boundary of an authorized25 municipality and a transfer of powers ordinance has not been adopted by the26 cooperating county.27 (2) A revenue allocation financing provision adopted in accordance28 with this chapter shall be effective retroactively to January 1 of the year29 in which the local governing body of the authorized municipality enacts such30 ordinance.31 (3)(a) Prior to taking action on an ordinance to adopt a revenue alloca-32 tion financing provision, the local governing body of an authorized mu-33 nicipality shall prepare a notice stating:34 (i) That an urban renewal plan or modification thereto or a com-35 petitively disadvantaged border community area has been proposed36 and is being considered for adoption, and that such plan or modi-37 fication thereto or proposal to create a competitively disadvan-38 taged border community area contains a revenue allocation financ-39 ing provision that will cause property taxes resulting from any40 increases in equalized assessed valuation in excess of the equal-41 ized assessed valuation as shown on the base assessment roll to be42

2 allocated to the agency for urban renewal and competitively disad-1 vantaged border community area purposes;2 (ii) That an agreement on the administration of a revenue alloca-3 tion financing provision extending beyond the municipal boundary4 of the authorized municipality has been negotiated with the coop-5 erating county having extraterritorial power and that the agree-6 ment has been formalized by a transfer of power ordinance adopted7 by that county; and8 (iii) That a public hearing on such plan or modification will be9 held by the local governing body pursuant to section 50-2008(c),10 Idaho Code.11 (b) The notice shall also state the time, date, and place of the hear-12 ing. At least thirty (30) days but not more than sixty (60) days prior13 to the date set for final reading of the ordinance, the local governing14 body shall publish the notice in a newspaper of general circulation and15 transmit the notice, together with a copy of the plan and recommenda-16 tion of the urban renewal agency or the municipality which by ordinance17 created the competitively disadvantaged border community area, to the18 governing body of each taxing district which levies taxes upon any tax-19 able property in the revenue allocation area and which would be affected20 by the revenue allocation financing provision of the urban renewal plan21 proposed to be approved by the local governing body.22 (4) No fire protection district or ambulance service district shall be23 subject to the financing provisions of an urban renewal revenue allocation24 area, or any modification thereof, created or modified after July 1, 2025,25 unless the local governing body of the authorized municipality proposing to26 create or modify such financing provision requests such district to consent27 to be subject to the financing provision and the district receiving such28 request consents. To request such a district to consent, the local governing29 body of an authorized municipality shall send a request to the district at30 the same time it sends notice to taxing districts of its intent to create or31 modify an urban renewal plan that includes a revenue allocation financing32 provision pursuant to subsection (3) of this section. If the governing board33 of the district receiving a request to consent agrees with the request, it34 shall adopt a resolution providing that such district shall be subject to35 the financing provisions of the proposed urban renewal area plan or proposed36 urban renewal area plan modification that was identified in the request, and37 shall thereafter be subject to such financing provision. The consenting38 district shall, within ten (10) business days, file a copy of the resolution39 with the local governing body of the authorized municipality. Upon receipt40 of the district's resolution consenting to be subject to the financing pro-41 vision, the governing body of the municipality shall transmit a copy of such42 resolution to the county clerk and the state tax commission within ten (10)43 business days.44 (5)(a) Any fire protection district or ambulance service district may45 withdraw from being subject to an urban renewal revenue allocation fi-46 nancing provision under an urban renewal plan established by local gov-47 erning body ordinance prior to July 1, 2025, if the urban renewal plan48 establishing the revenue allocation financing provision does not have49 any outstanding bonds, contractual obligations, or other indebtedness50

3 being funded by such revenue allocation financing provision greater1 than the amount of the revenue allocation proceeds that was attribut-2 able to the fire protection district or ambulance service district as of3 December 31 of the immediate prior tax year.4 (b) Any fire protection district or ambulance service district that5 seeks to withdraw shall:6 (i) By May 1 of the withdrawal year request an accounting from7 the county showing the amount of revenue allocation proceeds that8 was attributable to the fire protection district or ambulance ser-9 vice district as of December 31 of the immediate prior tax year. A10 copy of the accounting shall be simultaneously transmitted by the11 county to the requesting district and the agency within fifteen12 (15) days of receipt of the request from the district; and13 (ii) By June 1 of the withdrawal year adopt a resolution express-14 ing an intent to withdraw and transmit the same to the urban re-15 newal agency that governs the urban renewal plan and revenue al-16 location financing provision that the district seeks to withdraw17 from.18 (c) The agency shall schedule a special meeting within ten (10) busi-19 ness days of receipt of the fire protection district's or ambulance ser-20 vice district's resolution approving the withdrawal and the accounting21 from the county to accept the request to withdraw by agency resolution,22 or to deny the request to withdraw in writing due to the existence of23 outstanding bonds, contractual obligations, or other indebtedness be-24 ing funded by the district's revenue allocation proceeds, and setting25 forth specific information about the indebtedness.26 (d) The agency shall not deny a fire protection district's or ambulance27 service district's request to withdraw if there are no outstanding28 bonds, contractual obligations, or other indebtedness being funded by29 the district's revenue allocation proceeds or if the agency has suffi-30 cient revenue allocation proceeds from other sources to satisfy current31 outstanding bonds, contractual obligations, or other indebtedness.32 (d) (e) If the withdrawal is accepted, the urban renewal agency shall33 transmit a copy of the district resolution and the agency resolution to34 the county clerk, the county recorder, and the state tax commission no35 later than the fourth Monday of July. If the resolutions are received36 by the state tax commission and the county by the fourth Monday of July,37 then the levy rate for the next fiscal year will be calculated pursuant38 to section 50-2908(1)(g), Idaho Code, and any budget increases as set39 forth in sections 63-802 and 63-301A, Idaho Code. If the resolutions40 are transmitted to the county clerk, the county recorder, and the state41 tax commission after the fourth Monday of July, then the effect of the42 withdrawal will be the following tax year.43 (f) For the purposes of this subsection, "contractual obligation"44 means an obligation expressly set forth in a written contract or other45 written agreement that is executed by the parties to such contract or46 agreement.47

SECTION 2. An emergency existing therefor, which emergency is hereby48 declared to exist, this act shall be in full force and effect on and after its49 passage and approval.50