April 28, 2026

Property Taxes Demand Real Reform in Iowa and Beyond

Property tax reform is a national issue: while Tennessee’s effort failed due to local government opposition, Iowa still has a strong chance to pass meaningful limits this session. Double-digit property tax increases in both states are being driven by spending choices, not a lack of resources, with local governments often prioritizing discretionary projects over restraint. Warnings about cuts to essential services are overstated; without structural limits, taxpayers will continue to be squeezed and long-term economic competitiveness will suffer.

John Hendrickson and Justin Owen Taxes, Spending, & Budget
October 17, 2025

The Blueprint for Property Tax Reform: Spending Restraint

Taxpayers must be protected from unchecked growth in local government spending. Statewide limits on tax increases would do that while forcing local governments to live within their means. Iowa, where local governments will collect a combined $6.4 billion in property taxes this fiscal year, illustrates the potential impact of such a reform. Over the past two decades property tax collections in the state have increased by close to 110 percent, surpassing both inflation and population growth.

John Hendrickson and Justin Owen Editorials
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Let’s be honest, big government is big bureaucracy, and common sense tells us big bureaucracy is ineffective. That’s why ITR Foundation works to:

  • Research principled solutions
  • Educate Iowans about our solutions
  • Activate Iowans in support of our solutions

By applying the principles of limited government, free enterprise, and the rule of law to public policy, we can ensure all Iowans will have the opportunity to succeed.

ITR Foundation set the policy groundwork for many recent taxpayer victories in Iowa:

  • Increased property tax transparency and spending restraint
  • A 3.8% flat individual income tax rate
  • Elimination of income taxes on retirement income
  • Elimination of inheritance tax
  • Creating a path to reduce corporate income tax to 5.5%
  • Phasing-out special tax incentives in the corporate tax code
  • Banning local universal basic income programs