After the effective date of this chapter, the taxes levied on the taxable property in the urban renewal area each year by and for the benefit of the state, the city, the county and any school district or other taxing district in which the urban renewal area is located, shall be divided as follows.
(A) That portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the Urban Renewal area, as shown on the assessment roll as of January 1, 1993, shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for said taxing district into which all other property taxes are paid. For the purpose of allocating taxes levied by or for any taxing district which did not include the territory in the urban renewal area on the effective date of this chapter, but to which the territory has been annexed or otherwise included after the effective date, the assessment roll as of January 1, 1993, shall be used in determining the assessed valuation of the taxable property in the urban renewal area on the effective date.
(B) That portion of the taxes each year in excess of such amounts shall be allocated to and when collected be paid into a special fund of the city to pay the principal of and interest on loans, monies advanced to or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under the authority of Iowa Code § 403.9(l), incurred by the city to finance or refinance, in whole or in part, projects in the urban renewal area, except that taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the taxing district without limitation by the provisions of this chapter. Unless and until the total assessed valuation of the taxable property in the urban renewal area exceeds the total assessed value of the taxable property in such area as shown by the assessment roll referred to in division (A) above, all of the taxes levied and collected upon the taxable property in the urban renewal area shall be paid into the funds for the respective taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. When such loans, advances, indebtedness and bonds, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the urban renewal area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property.
(C) The portion of taxes mentioned in division (B) above and the special fund into which that portion shall be paid may be irrevocably pledged by the city for the payment of the principal and interest on loans, advances, bonds issued under the authority of Iowa Code § 403.9(l) or indebtedness incurred by the city to finance or refinance in whole or in part projects in the urban renewal area.
(D) As used in this section, the word “taxes” includes, but is not limited to, all levies on an ad valorem basis upon land or real property.