The 2026 legislative session began with a simple question: would taxpayers truly come first at the Capitol? By the time lawmakers concluded their work, the answer was clear. Iowa taxpayers secured meaningful victories in property tax reform, constitutional protections, conservative budgeting, and increased oversight of federal funds.
Research comparing states with and without Certificate of Need (CON) laws suggests CON requirements can limit competition and reduce access to rural health care services. During the 2026 legislative session, Iowa passed significant CON reforms that reduce regulatory barriers and narrow the number of projects requiring state approval. The reforms should make it easier for providers to expand services, encourage investment in underserved areas, and improve health care access for Iowa patients and communities.
Iowa’s urban and suburban school districts demonstrate a wide range of per-pupil spending and are evenly split on both sides of the statewide average. The data suggests there is not a strong relationship between higher per-pupil spending and stronger student outcomes, as some of the best-performing districts rank well below the statewide average for per-pupil spending. The findings reinforce the idea that student success depends less on how much money districts spend and more on how effectively local leaders find a way to deliver education to their unique communities.
Iowa lawmakers passed a comprehensive property tax reform bill featuring a 2% cap on city and county property tax growth, marking a meaningful step toward slowing long-term tax increases. While the cap is significant, some exemptions and uncapped levies remain, meaning continued vigilance is needed as some local governments may seek to work around the limits. The bill includes several additional reforms, including reducing the school levy rate, restructuring homestead benefits, limiting TIF durations, capping ending fund balances, and improving taxpayer transparency through clearer notices and data access.
Iowans for Tax Relief Foundation was invited to a national conference of economists and policy experts, where John Hendrickson served as a panelist on communicating complex economic ideas to the public. The discussion emphasized that effective policy communication requires translating technical issues, like property tax reform, into clear, relatable language focused on real-world impact. The panel reinforced ITR Foundation’s role as a trusted voice in policy debates, highlighting the importance of timing, collaboration, and accessible writing in shaping public understanding.
Legislators have taken the first step. Last week, the Iowa Senate approved an amended property tax reform bill on a vote of 41–4. The House Republicans’ version was passed by the House Ways and Means Committee on March 18 and is expected to move forward in the next few weeks. These proposals share common goals but take different approaches, including caps on local government revenue growth, changes to assessment practices, shifts in school funding, limits on TIF, and varying mixes of exemptions, freezes, and tax base adjustments. Governor Reynolds and legislative leaders from both parties described this as the first step in negotiations. Their goal is to reach a final property tax reform agreement this year.
House Study Bill 764 would require greater legislative oversight of federal funds so Iowa fully understands the costs, conditions, and long-term obligations before accepting them. Concerns about the effort being “time consuming” highlight the core problem—too often, key details aren’t known when funding decisions are made. Lawmakers are open to refining the bill to make it workable, but its central goal remains clear: transparency and accountability for taxpayers. What if the biggest financial decisions shaping Iowa’s future are being made without full information? That’s not hypothetical. It’s the current reality when it comes to federal funds.
More than 200 attendees filled ITR Foundation’s eighth annual Tax Day Luncheon, highlighting its role as a signature gathering for advancing taxpayer-focused policy and celebrating Iowa’s recent fiscal reforms under Governor Reynolds’ leadership. Governor Reynolds emphasized Iowa’s progress—from a 3.8% flat income tax to regulatory and government reforms—and underscored that the next major priority is property tax reform driven by controlling government spending. Reynolds praised ITR’s role in the legislative process, stating it was “the only one at the table representing the taxpayer,” reinforcing ITR’s unique position as a consistent voice for taxpayers at the Capitol.
A crowd of engaged residents gathered in Rockwell City last week for a conversation on one of Iowa’s most pressing issues: property taxes. Hosted by local community members, the event featured ITR Foundation Research Director Sarah Curry, who provided a clear, practical walkthrough of how Iowa’s property tax system works and how taxpayers can better understand what’s happening in their own communities. The discussion quickly became highly interactive, with attendees, including local elected officials, eager to dig into the details behind their property tax bills. Sarah explained the fundamentals of how property taxes are calculated, what drives increases, and why headline claims about “rate reductions” don’t always tell the full story.
What rollback does: Iowa’s rollback limits how much of a property’s value is taxed, ensuring taxable values grow more slowly than market values, helping prevent sudden spikes in property tax bills. How it works: The rollback is recalculated each year for residential and agricultural property to cap statewide taxable value growth, adjusting automatically as valuations rise or fall. Why it matters: Rollback doesn’t control government spending, but it protects taxpayers by stabilizing the tax base, so rising property values don’t automatically translate into sharply higher tax bills.
ITR Foundation Policy Director John Hendrickson spoke to a full room of taxpayers and local officials in Bettendorf, continuing the organization’s effort to engage communities across Iowa on fiscal policy and tax reform. Hendrickson highlighted how Iowa’s tax competitiveness improved through disciplined budgeting, citing the state’s transition to a 3.8% flat income tax, elimination of the inheritance tax, and strong reserves including a nearly $4 billion Taxpayer Relief Fund. Hendrickson emphasized that rising local government spending is the main driver of property tax increases and argued that reforms—such as a 2% cap on property tax growth—are essential to deliver lasting relief for Iowa taxpayers.
The Iowa landscape in winter is frozen, still, and largely dormant. The Iowa Legislature, on the other hand, is anything but once it convenes each January. This year is no exception. Within the first two weeks of the 2026 session, lawmakers introduced three major property tax reform bills—an early burst of activity we believe signals meaningful opportunities for taxpayer wins in the months ahead.
Iowa currently lacks a clear process to prevent a state government shutdown if a budget is not passed on time, creating uncertainty for taxpayers and essential services. A budget-continuation, or “no shutdown,” rule would ensure government operations continue by temporarily extending the prior year’s budget during impasses or emergencies. Adopting such a rule would promote stability, limit political brinkmanship, and align Iowa with best practices already used in other states. Last year, Iowans once again watched Washington struggle through another federal government shutdown.
Central Iowa taxpayers and legislators voiced overwhelming frustration with high property taxes, citing rising local spending and a lack of transparency. Audience testimony highlighted widespread concern about school spending priorities and commercial property burdens, with many noting that facilities expansion has outpaced academic results and that high property taxes are discouraging business investment. Participants agreed that meaningful property tax relief must address the root cause—local spending growth—and put taxpayers back at the center of the system, not simply tweak levy rates or formulas.
In this issue of A Better Path Forward, we focus on how Iowa can break free from Washington’s budget chaos while safeguarding our own state finances from similar breakdowns. One key article, “Iowa Depends on Washington—and That’s a Problem We Can Fix,” lays out the Iowa Fiscal Independence Act—a proposal built on transparency about federal funds, disclosure of Washington’s guidance, and stronger legislative oversight of matching commitments. Alongside it, we advance a companion reform: a “No-Shutdown Rule” for Iowa’s General Fund, ensuring that if lawmakers miss a deadline, the previous year’s funding simply continues until agreement is reached.
The legislative session is almost two months away, but the Iowans for Tax Relief (ITR) team had a busy week engaging legislators, local leaders, and Iowa voters on the topics of property tax reform and spending restraint. ITR leaders reinforced the organization’s commitment to advancing sound fiscal policy and providing clear, accessible information that helps Iowans understand how government spending impacts their tax burden.
Iowans for Tax Relief Foundation Policy Director John Hendrickson recently joined leading economists and policy experts from across the continent at the 2025 Economic Freedom of North America (EFNA) Network Conference, sponsored by the Fraser Institute and the Bridwell Institute for Economic Freedom at Southern Methodist University. The EFNA network brings together organizations committed to advancing policies that expand individual liberty and economic opportunity.
Across Iowa, more than 40 county hospitals receive a portion of their funding from local property taxpayers, totaling more than $150 million a year. These facilities are often essential—especially in rural areas where they may be the only source of emergency care. But when public dollars are involved, financial transparency takes on heightened importance. One key question Iowans are always entitled to ask is: How many tax dollars are actually necessary?
Property taxes remain the most pressing concern for Iowans, and that sentiment was clear during a recent roundtable discussion held at Stone Cliff Winery in Dubuque. Community members, business owners, and elected officials gathered to confront a growing frustration: rising property taxes that stretch family budgets and threaten the ability of many Iowans to remain in their homes.
A new Iowans for Tax Relief Foundation (ITRF) poll of likely general election voters in Iowa reveals overwhelming and consistent support for taxpayer safeguards, including constitutional amendments to protect against income tax hikes, and limits on property tax increases.
The survey, conducted from September 22 to September 23, 2025, found that 71% of Iowans support requiring a two-thirds supermajority of the state legislature to approve any tax increases. This strong backing extends across political lines; 77% of independent voters, and 56% of democrat voters, favor this protection.
With the newest round of property tax payments due this month, too many Iowans are staring at their bills and wondering how long they can keep up with the rising costs. While most of us can feel the strain year after year, once factors like valuations, rollbacks, and “growth” are considered, it can be difficult to know exactly how much property tax pain we’re experiencing.
Iowa taxpayers are being asked to carry more each year, with little say in how much heavier the load becomes. Rising property taxes are not the result of some mysterious formula—they stem from local government budgets that grow faster than family budgets.
Property taxes in Iowa are unpredictable and burdensome, driven by many layers of government that often leave homeowners frustrated as bills rise faster than their ability to pay.
Effective property tax rates vary widely across the state, with homeowners in places like Eldridge and Le Mars paying under 1.3%, while residents in Waterloo and Keokuk face rates above 2%.
Without meaningful reform to limit local government spending, these disparities and rising bills will continue, making property tax relief one of the most pressing issues for Iowa families and businesses.
Iowans for Tax Relief Foundation (ITRF) is honored to announce that our work on the ITR Report Card was recognized with the Bob Williams Award for Most Influential Research at the State Policy Network’s Annual Meeting in New Orleans on August 27.
The Bob Williams Awards celebrate state-based think tanks that achieve exceptional results advancing free-market policy reforms. Named after Bob Williams—one of the conservative movement’s most respected policy leaders—the awards are given annually to recognize research and achievements that not only make a difference locally, but also serve as models for the nation.
As summer winds down and classrooms fill again, “back to school” season is in full swing. For many families, this time of year brings new routines, fresh goals, and—whether you’re a student, parent, or taxpayer—a renewed focus on the importance of education. That’s why this issue of our magazine includes a special section dedicated to schooling in Iowa, with three articles that explore the quality of student outcomes, the critical importance of early literacy, and the real price of public education in our state.
These education-focused pieces are not just for parents or teachers—they matter to every Iowan. K-12 public education is the single largest consumer of both state income tax dollars and local property tax dollars, meaning every taxpayer has a direct stake in how well our schools perform. That’s why it’s essential to pair our investment with accountability—ensuring that every dollar delivers results for students and value for the taxpayers who fund our schools.
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:
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: