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.

This bill changes how school districts handle foundation property taxes in urban renewal areas. It prohibits automatically dividing these taxes between school districts and municipalities for urban renewal projects, instead requiring school districts to collect and keep all foundation property taxes (under section 257.3). School districts may voluntarily choose to pay some or all of these taxes to municipalities for urban renewal projects via a board resolution, but this is optional and does not affect state foundation aid. The policy applies to property taxes due in fiscal years starting July 1, 2027.