Revenue and Taxation committee introduces RS 32313 to allow early dissolution of urban renewal agencies
February 17, 2025 | Revenue and Taxation, HOUSE OF REPRESENTATIVES, Committees, Legislative, Idaho
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The House Revenue and Taxation Committee on Feb. 17, 2025, voted to introduce RS 32313, a resolution sponsored by Representative John Weber (District 34) that would give local governing bodies the ability to dissolve an urban renewal agency early when there is no outstanding debt and would provide a mechanism for fire protection and ambulance districts to exclude property tax increments from a revenue allocation area, so long as no current debt exists.
The measure matters because it would clarify how and when local governments can end urban renewal entities and how tax-increment financing (TIF) interacts with emergency service districts’ revenue in finished projects. Weber told the committee the RS seeks to fill a statutory gap he described as silence in the current code about dissolving an entire agency rather than individual project areas.
"This RS is giving local governing bodies the ability to dissolve a urban renewal agency early if there's no outstanding debt," Representative John Weber said. He also explained the provision that would allow fire and ambulance districts to not have property tax increments included in a revenue allocation area when no debt remains.
Representative Cornelis asked why an agency would want to dissolve if it has no balance. Weber responded that if an agency shows no activity for a period of time, officials may want the option to dissolve it. Representative Birch asked about the existing process for dissolution; Weber said state code is largely silent on dissolving an agency as a whole, which the RS would clarify.
Birch said she would support introduction but asked the sponsor to consult the Association of Counties and Cities for perspectives on pros and cons at the local level. Representative Raybould moved to introduce RS 32313; the committee approved the motion by voice vote and the RS was recorded as introduced.
The committee did not take a final vote on policy language; the action at this meeting was to introduce the RS and request further consultation. The next agenda item was House Bill 165.
The measure matters because it would clarify how and when local governments can end urban renewal entities and how tax-increment financing (TIF) interacts with emergency service districts’ revenue in finished projects. Weber told the committee the RS seeks to fill a statutory gap he described as silence in the current code about dissolving an entire agency rather than individual project areas.
"This RS is giving local governing bodies the ability to dissolve a urban renewal agency early if there's no outstanding debt," Representative John Weber said. He also explained the provision that would allow fire and ambulance districts to not have property tax increments included in a revenue allocation area when no debt remains.
Representative Cornelis asked why an agency would want to dissolve if it has no balance. Weber responded that if an agency shows no activity for a period of time, officials may want the option to dissolve it. Representative Birch asked about the existing process for dissolution; Weber said state code is largely silent on dissolving an agency as a whole, which the RS would clarify.
Birch said she would support introduction but asked the sponsor to consult the Association of Counties and Cities for perspectives on pros and cons at the local level. Representative Raybould moved to introduce RS 32313; the committee approved the motion by voice vote and the RS was recorded as introduced.
The committee did not take a final vote on policy language; the action at this meeting was to introduce the RS and request further consultation. The next agenda item was House Bill 165.
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