For years, Iowa property taxpayers have watched their tax bills climb higher while relief remained elusive. Recently though, Iowa lawmakers and Governor Kim Reynolds changed that trajectory with one of the most significant property tax reform bills in state history. The new law, SF 2472, puts taxpayers first, which is a simple but important accomplishment. Previous reforms largely focused on asses...
A new Fiscal Resilience Index ranked Iowa 8th nationally, reflecting the state's strong fiscal position and ability to withstand potential disruptions in federal funding. The study warns that states have become increasingly dependent on federal dollars, leaving them vulnerable to Washington's budget instability, policy changes, and growing national debt. Iowa's combination of spending restraint, s...
Colorado's Initiative 195 would replace the state's 4.4% flat income tax with a graduated income tax and significantly increase the amount of revenue the state can retain and spend. The proposal represents one of the most significant challenges to Colorado's Taxpayer Bill of Rights (TABOR), a constitutional limit on taxes and spending that has returned more than $12 billion to taxpayers since 1992...
States are increasingly divided between two fiscal philosophies: one focused on higher spending supported by higher taxes, and another centered on spending restraint, tax competitiveness, and economic growth. High-tax states such as Illinois and Minnesota continue to face budget pressures and are pursuing new taxes and revenue sources, while states like Iowa and Arkansas are using spending discipl...
States are moving in opposite directions on income taxes. Some states, including Washington, Hawaii, Maine, California, and potentially Colorado, are pursuing wealth taxes or higher rates on top earners, while others are reducing or eliminating income taxes. Tax-cutting states are emphasizing competitiveness and growth. South Carolina, Arkansas, West Virginia, Georgia, Indiana, Kentucky, and Utah ...
A century ago, Presidents Warren G. Harding and Calvin Coolidge made balancing budgets, reducing debt, and limiting government growth national priorities. Their administrations did not just slow spending growth — they actually cut federal spending, reduced the national debt, lowered tax rates, and produced budget surpluses. Fiscal restraint was politically difficult then, just as it is today, but ...
Iowa has pursued a fiscally conservative, growth-oriented strategy centered on lower taxes, restrained spending, and economic competitiveness under Governor Reynolds’ “Freedom to Flourish” philosophy. Recent reforms have strengthened the state’s fiscal position and improved its ability to compete for residents and investment. For Midwestern states like Iowa, long-term success will depend less on g...
Governor Kim Reynolds and the legislature limited Fiscal Year 2027 spending growth to 1.4% in response to slower revenue growth, economic uncertainty, and the continued phase-in of income tax cuts that allow Iowans to keep more of their own money. Public education and Medicaid continue to dominate Iowa’s budget and are growing faster than overall revenue, raising concerns that those programs could...
Iowa lawmakers advanced major taxpayer-focused reforms during the 2026 session, including a 2% cap on many local property tax levies, school funding reforms, a larger Homestead Exemption, and other changes projected to save taxpayers more than $4 billion over six years. The legislature also prioritized conservative budgeting by limiting state spending growth to 1.4% and advanced a constitutional a...
Iowa lawmakers approved a proposed constitutional amendment that would require a two-thirds vote of both legislative chambers to raise income taxes, giving voters the final say this November. The amendment is designed to place a higher barrier between taxpayers and tax increases by ensuring higher taxes cannot become the automatic response to budget pressures. The proposal reflects the long-standi...
Federal funds aren’t “free”—they come with strings attached, can drive higher state spending, and are increasingly unstable given Washington’s fiscal position and growing national debt. Earlier in the session, HSB 764 proposed a stronger approach with upfront reporting, full transparency, and legislative approval of major federal funds, ensuring lawmakers could evaluate commitments before they wer...
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 r...
The Iowa House is now advancing a proposed constitutional amendment, which would create a requirement that income tax increases receive a two-thirds vote in both chambers of the legislature. The proposed amendment has already passed the Senate and if it passes the full House this spring, it will appear on the ballot for voter approval during November’s election.
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 es...
From a public policy standpoint, Iowa has become a national leader in conservative reform. On taxes, budgeting, regulation, school choice, and protections for life and civil liberties, the state stands in sharp contrast to neighbors such as Minnesota and Illinois. But policy alone does not fully explain why so many people love Iowa. “What happened this year went beyond Iowa nice. You showed a huma...
Property tax frustration is growing nationwide, and taxpayers are increasingly rejecting higher taxes while calling for stronger protections. Massachusetts’ Proposition 2½ shows how effective guardrails can work, as voters in South Hadley rejected major tax increases that could have raised bills by up to 50%. The message is clear: taxpayers expect governments to control spending and prioritize bud...
Federal spending and the national debt are on an unsustainable path, with rising deficits and interest costs forcing cuts that are already beginning to impact states. The states, including Iowa, are highly exposed, relying on billions in federal funds that can be reduced, restricted, or eliminated with little warning. Lawmakers can prepare by increasing transparency, oversight, and long-term plann...
Property tax reform can feel like fighting a war on a thousand fronts. Should the focus be on assessments, levy rates, or rollback? Or on Tax Increment Financing (TIF), targeted credits, and exemptions? School funding adds yet another layer. While all these factors influence property taxes, they often distract from the core issue that has undermined past reform efforts. That issue is government sp...
Federal deficit spending has reached unsustainable levels, with the national debt surpassing $39 trillion, driven by decades of expanding government involvement in the economy. Even small, well-intentioned programs, like federal grants to support young commercial fishermen, contribute to a broader pattern where nearly every challenge is met with new spending. When government spending replaces the ...
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, change...
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 centr...
Spending drives property taxes: While factors like TIF, rollback, and exemptions matter, the primary driver of rising property taxes is local government spending—making spending restraint central to meaningful reform. National trend toward caps: States across the country—both red and blue—are adopting property tax caps (like Kansas’s protest petition system and Montana’s proposed 2% cap) to slow t...
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 priorit...
The Iowa House is considering a proposal that would require legislative approval before state agencies pursue or accept major federal grants, ensuring that elected lawmakers, not just administrators, have a say in decisions that can commit taxpayers to long-term obligations. The bill mirrors key components of ITR Foundation’s Fiscal Independence Act by combining legislative oversight with greater ...
Voters in Austin, Texas overwhelmingly rejected a property tax increase, signaling frustration with rising costs and prompting the city to pursue an independent efficiency audit to improve accountability and control spending. Efficiency audits can identify waste, streamline operations, and generate meaningful savings—often improving services while reducing costs. Local governments in Iowa should u...