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H 255

URBAN RENEWAL – Amends and adds to existing law to provide for the dissolution of urban renewal agencies and termination of urban renewal revenue allocation areas and to allow fire protection districts and ambulance service districts to opt out of certain urban renewal financing provisions.

68th Legislature, 1st Regular Session (2025)

House Bill 255 allows local governments to dissolve debt-free urban renewal agencies and lets fire and ambulance districts opt out of urban renewal financing to protect funding.

Reported Printed and Referred to Revenue & Taxation
#bonds #cities #districts #emergencies #fireandfirefighters #taxandtaxation
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Bill Summary · H 255

Summary of House Bill 255 (H 255)

Title

Urban Renewal – Amends and adds to existing law to provide for the dissolution of urban renewal agencies and termination of urban renewal revenue allocation areas and to allow fire protection districts and ambulance service districts to opt out of certain urban renewal financing provisions.

Introduction

House Bill 255 (H 255) was introduced on February 17, 2025, and is currently under consideration by the Revenue & Taxation Committee. The bill aims to modify existing laws regarding urban renewal agencies and their financial interactions with local fire protection and ambulance service districts.

Purpose and Intent

The primary intent of H 255 is to provide local governing bodies with the ability to dissolve urban renewal agencies that have no outstanding debt. Additionally, the bill seeks to protect the property tax base of fire protection and ambulance service districts by allowing them to opt out of revenue allocation areas associated with urban renewal, thereby ensuring that these essential services are adequately funded.

Key Provisions

  1. Dissolution of Urban Renewal Agencies:

    • Local governing bodies can dissolve urban renewal agencies early if they have no outstanding debt.

  2. Opt-Out Provisions for Fire and Ambulance Districts:

    • For urban renewal revenue allocation areas created or modified after July 1, 2025, fire protection and ambulance service districts will not have their property tax increments included unless they choose to opt in.
    • Existing districts within a debt-free urban renewal revenue allocation area can withdraw from it.

  3. Amendments to Idaho Code:

    • The bill amends several sections of the Idaho Code related to urban renewal, including:
      • Section 50-2006: Revises provisions regarding the dissolution of urban renewal agencies.
      • Section 50-2903: Updates definitions and makes technical corrections.
      • Section 50-2906: Modifies public hearing and ordinance requirements for proposed revenue allocation areas.
      • Section 50-2914: Introduces provisions for the termination of a revenue allocation area.

  4. Fiscal Impact:

    • The fiscal note indicates that the bill does not directly increase or decrease public revenues or expenditures. However, if districts opt out of future urban renewal agencies, it may slightly reduce the potential debt urban renewal agencies could incur.

Who Would Be Affected?

  • Local Governments: Municipalities will have more flexibility in managing urban renewal agencies.
  • Fire Protection Districts and Ambulance Service Districts: These entities will have the option to protect their funding by opting out of urban renewal financing provisions.
  • Residents: The changes may impact local property taxes and the availability of funding for essential public safety services.

Procedural Aspects

  • Current Status: The bill was reported printed and referred to the Revenue & Taxation Committee on February 18, 2025.
  • Emergency Clause: The bill includes a declaration of emergency and provisions for retroactive application, indicating its urgency and immediate relevance to local governance.

Conclusion

House Bill 255 represents a significant shift in how urban renewal agencies interact with local fire protection and ambulance service districts. By allowing for the dissolution of agencies without debt and providing opt-out provisions, the bill aims to safeguard essential public services while giving local governments greater control over their financial structures.

Compiled from official sources — confirm details with the bill’s official record.

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