SF 2436: Relating to the division of revenue of school district foundation property taxes for urban renewal projects, authorizing voluntary payments by school districts, and including applicability provisions

What it does

19 (tax increment financing). The bill prohibits the foundation property tax from being divided and paid into the municipality’s special fund for the payment of urban renewal indebtedness and instead requires the tax to be levied, collected, and paid to the school district in the same manner as all other property taxes.3 levied for fiscal years beginning on or after July 1, 2027, against property located in the urban renewal area.3 and such payment shall not result in the adjustment of state foundation aid or other amounts under Code chapter 257.

Senate subcommittee · named February 24, 2026

• Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
• Sen. Tony Bisignano (D) · tony.bisignano@legis.iowa.gov
• Sen. Kerry Gruenhagen (R) · kerry.gruenhagen@legis.iowa.gov

Lobbying · 6 for, 3 against

For: Common Good Iowa; Iowa Association of School Boards; Professional Educators of Iowa; Rural School Advocates of Iowa; School Administrators of Iowa; Urban Education Network of Iowa

Against: Iowa Housing Partnership; Iowa League of Cities; Professional Developers of Iowa (PDI)

In plain words

1. February 10, 2026Filed in the Senate and sent to the Local Government committee · as SSB 3138
2. February 10, 2026Senate subcommittee named: Webster, Driscoll and Quirmbach · as SSB 3138
3. February 17, 2026Subcommittee recommended passing it with changes · as SSB 3138
4. February 19, 2026Approved by the Senate committee, and given a new number: SF 2436 · as SSB 3138
5. February 23, 2026Filed in the Senate
6. February 23, 2026Approved by the Senate committee
7. February 24, 2026Sent to the Senate Ways and Means committee
8. February 24, 2026Senate subcommittee named: Dawson, Bisignano and Gruenhagen