A bill for an act 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.

SF 2436 allows Iowa school districts to voluntarily pay a portion of their foundation property taxes (levied on property within urban renewal areas) to municipalities for urban renewal projects, instead of having those taxes automatically allocated to the municipality's special fund. School districts must formally approve this payment via a board resolution, and it remains optional - districts aren't required to make these payments. Crucially, such voluntary payments won't reduce the school district's state foundation aid or other funding under Chapter 257. The bill applies to taxes due for fiscal years starting July 1, 2027, and clarifies that foundation property taxes will no longer be automatically divided for urban renewal purposes.