Property tax reform will be one of the central policy issues facing legislators during the 2026 session. Governor Kim Reynolds has made clear that it will be a top priority and that she intends to play a direct role in crafting a solution.
ITR Foundation’s recent poll found that 72% of Iowans support a 2% cap on total property tax collections—including 59% of Democrats and 68% of independents. Broad, bipartisan agreement shows that Iowans are demanding real relief.
While no specific reform plan has been announced, Governor Reynolds has emphasized that local governments must begin exploring consolidation and efficiency measures. She has also highlighted a reality often overlooked in politics: the cost of government services is growing faster than taxpayers’ ability to pay. Over the past 20 years, Iowa property taxes have risen more than 107%, far outpacing both inflation and population growth. Local government spending is the primary driver.
That means meaningful property tax reform must address spending. As the governor noted, Iowans must be willing to accept that some services may need to be delivered differently—and public education cannot be exempt from this conversation.
Governor Reynolds is urging local governments to follow the model she established through her state government reorganization, which consolidated agencies, eliminated boards and commissions, and modernized operations through shared technology. She is calling on local entities to take similar steps: consolidating services, pursuing shared-service agreements, adopting state technology platforms, merging county offices, and considering regional service delivery. Many of these ideas appeared in the DOGE Task Force’s final report.
These reforms are constructive, but without real limits on spending, tax relief will remain minimal. Government cannot continue expanding while expecting taxpayers to shoulder ever-larger bills.
The governor’s message is clear: property tax relief is impossible without a change in local government spending behavior. This does not require eliminating essential services, but it does require prioritization and restraint.
The country’s $38 trillion federal debt, the fiscal crises in many states, and growing frustration with local tax burdens all stem from the same cause—unchecked government spending. The desire for continually expanding government is incompatible with lasting tax relief.
For Iowa to achieve meaningful, permanent property tax reform, both taxpayers and local governments must understand that the solution begins—and ends—with limiting local government spending.
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