Bills › 91st General Assembly
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
Sponsored by the Senate Local Government Committee
Topics:K–12 educationCities & countiesTaxesProperty taxes
Same legislation: SSB 3138
Where it is now
- Done: IntroducedFebruary 10, 2026
- Done: SubcommitteeFebruary 10, 2026
- Done: Senate committeeFebruary 19, 2026
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committeeFunnel: by March 20, 2026
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Currently, some property taxes used for urban renewal projects are shared with cities, but this change would ensure school district foundation taxes go directly to schools instead. Starting in 2027, school districts could choose to voluntarily give some of that money back to a city's special fund to help with local renewal projects. This decision would be made by the school district through a formal vote.1
Read the official explanation
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. The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2027.
Why it matters. School districts and municipalities would see changes in how foundation property taxes are collected and distributed within urban renewal areas. Instead of these taxes being divided and sent to a municipality's special fund for urban renewal debt, the money would be paid directly to school districts. Starting July 1, 2027, school districts could also choose to voluntarily pay some of these taxes from their general funds to a municipality's special fund.2
Senate subcommittee
Named February 24, 2026. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
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91st General Assembly