Senate File 2440 - Introduced SENATE FILE 2440 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 3136) A BILL FOR An Act relating to the permissible uses of certain school 1 district property tax revenue for urban renewal projects and 2 including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6612SV (1) 91 ms/md

S.F. 2440 Section 1. Section 403.19, subsection 10, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. School district foundation property 3 taxes levied under section 257.3 and deposited into the special 4 fund as the result of a division of revenue under this section 5 shall not be expended for or otherwise used in connection with 6 an urban renewal project approved on or after January 1, 2025, 7 that in whole or in part includes the planning, construction, 8 or operation of a stadium or arena primarily intended for use 9 by one or more professional sports teams. 10 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 11 importance, takes effect upon enactment. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Iowa’s urban renewal law under Code chapter 403 authorizes 16 the division of revenue (tax increment financing). This bill 17 provides that school district foundation property taxes levied 18 under Code section 257.3 and deposited into a municipality’s 19 special fund as the result of a division of revenue shall not 20 be expended for or otherwise used in connection with an urban 21 renewal project approved on or after January 1, 2025, that 22 in whole or in part includes the planning, construction, or 23 operation of a stadium or sports arena primarily intended for 24 use by one or more professional sports teams. 25 The bill takes effect upon enactment. 26 -1- LSB 6612SV (1) 91 ms/md 1/ 1