This bill amends the current law regarding the division of revenue from school district foundation property taxes for urban renewal projects. Specifically, it excludes the foundation property tax imposed under Code section 257.3 from being allocated to the municipality's special fund for urban renewal indebtedness, ensuring that these taxes are levied, collected, and paid directly to the school district like other property taxes. The bill also introduces a new provision allowing school districts to voluntarily approve payments from their general fund to the municipality for deposit into the special fund, but only for foundation property taxes levied against properties in urban renewal areas for fiscal years beginning on or after July 1, 2027.

Additionally, the bill stipulates that any payments made by school districts under this new provision will still be considered foundation property taxes and will not affect the calculation of state foundation aid or other amounts under chapter 257. The changes aim to provide school districts with more control over their foundation property tax revenues while still allowing for potential voluntary contributions to support urban renewal projects.

Statutes affected:
Introduced: 403.19, 403.9