Iowa’s 2026 legislative session concluded on Sunday with lawmakers reaching a last-minute agreement on a property tax deal.
Iowa Public Radio reports the deal caps revenue growth under city and county general levies at 2% beginning in the 2027-2028 fiscal year. Revenue growth at county hospitals would be capped at 4%, and emergency management agencies at 3%. School funding will not be capped.
The Department of Management estimated this initiative will save taxpayers $4.2 billion over six years.
The approved plan will also extend the state sales tax another 20 years, with more of the revenue aimed at property tax relief – up to 25% by the 2030-2031 fiscal year. The proposal reinstates a separate property class for multi-residential buildings and raises their amount of assessed value over three years.
Gov. Kim Reynolds praised the Republican-controlled legislature for the plan.
“We kept our promise by passing meaningful property tax relief and reform, estimating nearly $4 billion in savings over the next six years,” she said. “By capping local government revenue growth at 2% with clear and responsible guardrails, this plan brings certainty and discipline to a system that needed both.”
However, House Minority Leader Brian Meyer (D-Des Moines) was skeptical that the plan will work as intended.
“Unfortunately, I don’t think it’ll do much to actually lower property taxes,” he said. “I think it’s a Band-Aid, another Band-Aid that is not going to do much, and I don’t think people will see actual results.”
Photo by marekuliaz / Getty Images
0 Comments