260E.3 Agreement.
1. A community college may enter into an agreement to establish a project. If an agreement is entered into, the community college and the employer shall notify the department of revenue as soon as possible. An agreement shall provide for program costs, including deferred costs, which may be paid from one or a combination of the following sources:
a. Incremental property taxes to be received or derived from an employer’s business property where new jobs are created as a result of the project.
b. New jobs credit from withholding to be received or derived from new employment resulting from the project.
c. Tuition, student fees, or special charges fixed by the board of directors to defray program costs in whole or in part.
d. Guarantee of payments to be received under paragraph “a”, “b”, or “c”.
2. Payment of program costs shall not be deferred for a period longer than ten years from the date of commencement of the project.
3. Costs of on-the-job training for employees shall not exceed fifty percent of the annual gross payroll costs for up to one year of the new jobs. For purposes of this subsection, “gross payroll” can be the gross wages, salaries, and benefits for the jobs in training in the project.
4. An agreement shall include a provision which fixes the minimum amount of incremental property taxes, new jobs credit from withholding, or tuition and fee payments which shall be paid for program costs.
5. Any payments required to be made by an employer are a lien upon the employer’s business property until paid and have equal precedence with ordinary taxes and shall not be divested by a judicial sale. Property subject to the lien may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties, and consequences as for the nonpayment of ordinary taxes. The purchaser at tax sale obtains the property subject to the remaining payments.
83 Acts, ch 171, §3, 8
CS83, §280B.3
90 Acts, ch 1253, §74
C93, §260E.3
94 Acts, ch 1182, §1, 2; 95 Acts, ch 195, §11, 44; 95 Acts, ch 201, §1, 3; 2003 Acts, ch 145, §286
Referred to in §15A.7, 403.21
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