Bills › 91st General Assembly
Relating to the permissible uses of certain school district property tax revenue for urban renewal projects and including effective date provisions
Sponsored by the Senate Local Government Committee
Topics:K–12 educationCities & countiesTaxesProperty taxes
Same legislation: SSB 3136
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 Cities cannot use certain school district tax money to help pay for new stadiums or sports arenas used by professional teams. This rule applies to any urban renewal projects approved on or after January 1, 2025. It ensures that these specific school funds are not spent on building or running professional sports facilities.1
Read the official explanation
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.
Why it matters. Municipalities would be prohibited from using school district foundation property tax revenue for urban renewal projects involving the planning, construction, or operation of professional sports stadiums or arenas approved on or after January 1, 2025. This change affects how local governments can spend certain tax funds related to urban renewal projects.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
1 written public comment to its subcommittee: February 19, 2026 (1) · on the Legislature’s site
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91st General Assembly