On March 3, 2026, voters in 12 Iowa school districts will decide public measures affecting property taxes and long-term school spending, including nine PPEL increases or renewals and three Revenue Purpose Statements (RPS). If approved, these measures could represent more than $150 million in potential property tax collections over the next decade, while RPS proposals would allow districts to redir...
Sarah Curry of Iowans for Tax Relief Foundation says this is the time to voice your opinions to elected leaders. "April is when we have public hearings," Curry says. "Waiting until April is almost too late because they've done all of this legwork and they've gotten up to that point for taxpayers to then come in and say, 'That's too much,' or 'We're spending too much,' 'The tax rate's too high' or ...
Rising spending is driving rising property taxes. Lawmakers across the country are increasingly acknowledging that escalating local government spending — whether in schools, cities, or counties — is the root cause of higher property tax burdens. “Buying down” property taxes with state dollars has failed. Efforts in states like Vermont, Iowa, and Nebraska to offset property taxes with general fund ...
What is often labeled “de-banking” is largely the result of an outdated and rigid federal regulatory framework rooted in the 1970s Bank Secrecy Act that incentivizes banks to over-comply to avoid severe penalties. Political signaling by regulators, combined with strict confidentiality rules around Suspicious Activity Reports, leaves banks cautious and opaque, fueling public frustration and percept...
A lawsuit challenges Jefferson’s use of taxpayer dollars after the city transferred $800,000 from its Water Plant Construction Fund into economic development and TIF-related accounts. Plaintiffs argue the transfer violated Iowa law and public process, claiming the city neither demonstrated a lawful surplus nor created a binding repayment obligation, and failed to follow required budget amendment p...
ITR Foundation is taking the property tax conversation directly to Iowans, engaging grassroots audiences alongside elected officials and candidates to address the real-world impact of rising property taxes. The data show a clear problem: Iowa property taxes have grown by more than 100 percent over the past two decades, far outpacing population growth and inflation, driven primarily by sustained gr...
Tax reform without structural limits is temporary, as spending pressures and special interests will eventually overwhelm even well-designed tax cuts unless constitutional guardrails are put in place. Two key constitutional protections—a supermajority requirement for tax increases and protection of the flat tax—work together to restrain spending, reduce special-interest influence, and preserve econ...
Tax debates are fundamentally imbalanced, treating government spending as virtuous while portraying taxpayers as selfish for wanting to keep more of what they earn. Spending pressures, not taxpayer capacity, drive tax increases, with policymakers and special interests too often defaulting to higher taxes rather than spending restraint. Tax reform alone is insufficient without structural limits, as...
Iowa’s Certificate of Need law has failed its original purpose, acting as a barrier to access, competition, and innovation by allowing existing providers to block new services and facilities—often to the detriment of patients. Two Senate bills this session represent the most meaningful CON reform in years, easing restrictions on mental health facility expansion and sharply narrowing when CON revie...
All three property tax reform plans share a core idea: a 2% annual cap on property tax revenue growth for cities and counties, aimed at slowing rising property tax bills for Iowa homeowners. Local government critics claim a 2% cap is unworkable, arguing it would undermine public safety, infrastructure, and basic services, but those claims ignore what’s already happening on the ground. Dozens of Io...
Tax revolts are a recurring feature of American history, from the founding era through Proposition 13 in the 1970s, and the Tea Party movement, each reshaping tax policy and political priorities in its time. Today, property taxes are again reaching a breaking point, with taxpayers nationwide demanding relief and states pursuing widely different strategies—from caps and assessment limits to outrigh...
Governor Reynolds has proposed a $9.6 billion FY27 budget that modestly increases spending while education and health services, driven primarily by K-12 funding and Medicaid, continue to dominate state expenditures, consuming roughly 84 percent of the General Fund. Although Iowa is projecting a $1.2 billion revenue shortfall due to the fully phased-in 3.8 percent flat tax, this reflects a planned ...
States are choosing two very different paths. High-tax, high-spending states are running growing deficits, while reform-oriented states are cutting income taxes, controlling spending, and becoming more competitive. The push to eliminate income taxes is accelerating. States like Missouri, Louisiana, West Virginia, and especially South Carolina are using revenue triggers and disciplined budgeting to...
Rollback limits how fast taxable values grow—not how much governments tax. Iowa’s rollback prevents rapid increases in assessed property values from automatically turning into equally rapid increases in taxable value, providing predictability for taxpayers, but it does not cap local government spending or levy rates. The 3% cap is statewide and interacts with agriculture through the “Ag Tie.” Resi...
Iowa ranks 4th nationally for education freedom, earning top marks in the 2026 Index of State Education Freedom for expanding educational options and reducing barriers for families. Governor Kim Reynolds’ student-first reforms are driving the results, including universal Education Savings Accounts, expanded charter schools, and easier open enrollment—giving parents more control regardless of incom...
Property tax reform has moved quickly into action in 2026, with Republicans in both chambers and Governor Kim Reynolds advancing comprehensive proposals aimed at slowing property tax growth and addressing long-standing structural problems in Iowa’s system. The Senate, Governor, and House proposals share common goals but take different approaches, including caps on local government revenue growth, ...
Iowa’s budget remains structurally sound, but spending is accelerating: The FY 2026 budget totals about $9.4 billion—up more than 5 percent year over year—raising sustainability concerns even as lawmakers face a $1 billion shortfall that is not a true deficit due to large reserve balances. Strong reserves and credit ratings provide a cushion, not a blank check: Iowa closed FY 2025 with nearly $1.9...
The Bears want a new, publicly supported stadium despite taxpayers still paying for the last one. The team does not own Soldier Field, can exit its lease early, and is pursuing a “world-class” stadium even as Chicago taxpayers remain on the hook for more than $350 million in remaining renovation debt — potentially paying for years after the Bears leave. Taxes and subsidies are central to the reloc...
Property tax reform has emerged as the central policy issue of the 2026 legislative session, with Governor Reynolds and leaders in both chambers making it a top priority in their opening remarks and early legislative action. Lawmakers across parties agree that rising property taxes—up more than 107% over the past 20 years—are hurting Iowa families, businesses, and rural communities, and that meani...
Iowa’s growing reliance on federal funding exposes the state to fiscal risk, policy mandates, and uncertainty driven by Washington, D.C. The Iowa Fiscal Independence Act would improve transparency, disclosure, and legislative oversight of federal funds to help lawmakers and taxpayers understand and manage those risks. By taking proactive steps toward fiscal independence, Iowa can strengthen state ...
Iowa lawmakers have an opportunity to strengthen long-term taxpayer protections by advancing constitutional amendments that require a two-thirds legislative vote to raise income taxes and permanently protect the state’s flat tax. Supermajority requirements and flat-tax protections are widely supported by voters, common in other states, and serve as effective checks on unchecked spending and future...
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 politic...
Conservative budgeting is the foundation of fiscal conservatism and the key to sustaining Iowa’s tax reforms. Spending growth has accelerated in recent budgets, even as economic uncertainty and revenue pressures increase. As lawmakers craft the FY 2027 budget, spending discipline will be essential to protecting Iowa’s fiscal stability and future tax relief. As economist Art Laffer has observed, “g...
Property tax reform is shaping up to be the defining issue of Iowa’s upcoming legislative session, with bipartisan attention and growing public pressure. Rising property taxes are driven by unchecked local government spending, not by isolated flaws in the tax system. A firm 2% cap on property tax growth is essential to delivering real, lasting relief, and must be central to any serious reform effo...
Iowa has transformed its income tax system from one of the nation’s worst to a flat 3.8% rate, cutting the top rate by nearly 60% and dramatically improving the state’s tax competitiveness. This reform was made possible by conservative budgeting and spending discipline, which allowed Iowa to lower rates responsibly while maintaining strong reserves and fiscal stability. As other states continue t...