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.
Sales and excise taxes should be fair and stable, not used for social engineering or quick cash grabs—tax policy should prioritize predictable revenue over punishing legal behavior.
Illinois serves as a warning—with excessive taxes on products like JUUL and Zyn used to fund more spending instead of making tough budget decisions.
Iowa must avoid that path—by rejecting gimmicky tax hikes and focusing on responsible budgeting and spending restraint.
Policy Should Solve Real Problems: Before supporting any proposal, ask whether it actually fixes the issue or just offers a political talking point—good intentions aren’t enough.
Always Follow the Money and the Power: Who pays? Who benefits? Does the proposal expand government or reduce its role in people’s lives?
Think Long-Term, Not Just Headlines: Every policy has tradeoffs. These seven questions offer a clear framework for evaluating legislation based on impact—not spin.
Iowa’s fiscal health remains strong, with billions in reserves, projected surpluses, and a fully funded Taxpayer Relief Fund, even amid tax reform transitions.
Government spending—especially in education and Medicaid—is the key risk to long-term stability, not reduced tax revenues.
Conservative budgeting must remain the priority; surpluses and reserve funds are tools for stability, not invitations to grow government.
Property tax collections from Iowa schools, cities (1,000+ population), and counties grew by $239.8 million—or 3.9%—from FY 2025 to FY 2026. Schools led the increase with a 4.4% rise, followed by cities at 4.2% and counties at 2.7%.
Over the past two years, total property tax growth across these local governments has exceeded 10%, raising concerns about long-term taxpayer impact and spending discipline.
Iowans for Tax Relief Foundation (ITRF) has named Ashleigh Hackel as its new Executive Vice President. Hackel brings a background in state government and a track record of advancing reforms rooted in free-market principles and aimed at producing a more effective, efficient, and approachable state government.
She most recently served as General Counsel at the Iowa Department of Inspections, Appeals, and Licensing, where she played a key role in implementing Governor Kim Reynolds’ agency reorganization and consolidation efforts. Her work helped reduce licensing burdens, improve regulatory efficiency, and make government more pragmatic and responsive, goals that reflect ITRF’s mission.
1 out of every 3 Iowa third graders cannot read at grade level.
Learning to read is one of the most important milestones in a child’s education. But if a child hasn’t learned to read by the end of third grade, they’re likely to struggle throughout the rest of their school years.
That’s because starting in fourth grade, the focus of education shifts. Instead of learning how to read, students are expected to read in order to learn. Textbooks, assignments, and tests all assume that students can understand written information. Without strong reading skills by this stage, students begin to fall behind.
Local government is not the heart of a community—it’s the tool that protects the space for community to thrive.
Municipal finance expert Mark Moses argued that local governments face ongoing budget stress because their missions are too vague and expansive, leading to unchecked growth in programs and spending.
Cities and counties should return to a limited, clearly defined role focused on core functions like public safety, infrastructure, and legal order—not economic development schemes or nonessential amenities.
Elected officials must reframe local policy debates by asking what government should do, not just how it operates, and prioritize protecting individual liberty over expanding government reach.
At the recent Iowans for Tax Relief Foundation Local Government Symposium, a message resonated with everyone in the room: local leadership matters—and the taxpayers are watching.
ITR Foundation hosted local elected officials from across the state for a full day of conversations about public service, stewardship, and sound decision-making. From Iowans serving on school boards, county boards, and city councils, attendees heard from policy experts and peers alike. They left encouraged, informed, and reminded of why they serve.
Iowans want meaningful, structural reform—and lawmakers should come back next session ready to deliver. Heading into the 2025 legislative session, leaders from both chambers declared that property tax relief would be a top priority. Lawmakers from both parties even agreed: high property taxes are the number one concern they hear from their constituents. But despite the broad consensus on the problem, no reform measure ultimately passed.
Based on the past decade of population data, Iowa’s growth story is one of urban, suburban, and regional consolidation, where cities are growing but counties as a whole are often shrinking—especially in rural parts of the state.
ITR Foundation’s review of city-level population changes from 2014 to 2023 found that a majority of Iowa cities with more than 1,000 residents are growing. In fact, nearly 60% of those 274 cities have gained population. Much of this growth is concentrated in key regions: 14 of the 20 fastest-growing cities are located in the Des Moines Metro, with another five around Iowa City and Cedar Rapids—a region often referred to as The Corridor.
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: