SF 2440 (LSB 6612SV (1) 91)

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 district property tax revenue for urban renewal projects and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 403.19, subsection 10, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  School district foundation property taxes levied under section 257.3 and deposited into the special fund as the result of a division of revenue under this section shall not be expended for or otherwise used in connection with an urban renewal project approved on or after January 1, 2025, that in whole or in part includes the planning, construction, or operation of a stadium or arena primarily intended for use by one or more professional sports teams.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Iowa’s urban renewal law under Code chapter 403 authorizes the division of revenue (tax increment financing). This bill provides that school district foundation property taxes levied under Code section 257.3 and deposited into a municipality’s special fund as the result of a division of revenue shall not be expended for or otherwise used in connection with an urban renewal project approved on or after January 1, 2025, that in whole or in part includes the planning, construction, or operation of a stadium or sports arena primarily intended for use by one or more professional sports teams.
   The bill takes effect upon enactment.