Last week, Iowans for Tax Relief Foundation was engaging directly with Iowans on the growing burden of property taxes at a grassroots event, with an audience that feels the consequences of rising taxes most directly.
At an event attended by community activists, taxpayers—including ITR members—elected officials, and candidates for state and local office, ITR Foundation Policy Director John Hendrickson was invited to address one of the most pressing issues facing Iowa families and employers: runaway property taxes. He was joined by other speakers including State Senator Mike Bousselot and former State Representative and current congressional candidate Joe Mitchell, highlighting the growing interest in reforms across all levels of government.
Hendrickson’s message was straightforward and data-driven. While Iowa has made historic progress on income and corporate tax reform in recent years, property taxes have quietly moved in the opposite direction. Over the past two decades, property taxes in Iowa have increased by more than 100 percent, far outpacing population growth, inflation, and what most Iowans would consider reasonable government expansion. That reality was illustrated with a chart shared at the event showing property tax growth climbing to roughly 107 percent, compared to less than 10 percent population growth over the same period
That growth, Hendrickson emphasized, is not driven by assessors or rising home values alone. It is the result of sustained growth in local government spending by cities, counties, and school districts. When spending accelerates year after year, property taxes inevitably follow, regardless of how complex or opaque the system becomes.
This is why the current property tax debate within the Capitol matters. With proposals now on the table from the governor, House, and Senate, there is growing consensus that property tax growth must be restrained. While details differ, each plan includes some form of cap on how quickly local property tax revenue can grow. Hendrickson focused on proposals that would limit annual growth to 2 percent, not as a radical idea, but as a practical budgeting guardrail.
In fact, similar caps already exist in states that few would describe as low-tax or conservative. Massachusetts has operated under a 2.5 percent property tax limit for decades. New York adopted a 2 percent cap under then-Governor Andrew Cuomo. In both cases, essential public services continued, while taxpayers gained predictability and protection against unchecked growth.
The broader fiscal context matters as well. Iowa’s recent tax reforms, including the full implementation of a 3.8 percent flat income tax, have helped make the state more competitive and attractive to workers and employers. Governor Kim Reynolds and the legislature deserve credit for reversing decades of uncompetitive tax policy. But without discipline at the local level, those gains risk being offset by rising property tax bills.
As Hendrickson noted, property taxes are not just a homeowner issue. For many small businesses, particularly in rural Iowa, property taxes represent a significant share of their total tax burden. When those costs rise faster than revenues, the consequences show up in hiring decisions, investment plans, and long-term viability.
The conversation also touched on first principles. Quoting economist Art Laffer, Hendrickson reminded attendees that “government spending is taxation, pure and simple.” Whether taxes are raised overtly or through steadily expanding budgets, the burden ultimately falls on taxpayers, often without their direct input.
That is why ITR Foundation continues to emphasize spending restraint as the foundation of meaningful tax relief. Property tax reform is not about eliminating services or ignoring local needs. It is about setting reasonable expectations, forcing prioritization, and ensuring government growth aligns with taxpayers’ ability to pay.
Events like this reflect ITR Foundation’s long-standing approach. For decades, the ITR family of organizations has worked with lawmakers, engaged with citizens, and provided data-driven analysis on how spending decisions affect Iowa families and communities. Showing up, listening, explaining, and engaging, is not new for ITR Foundation; it is at the core of mission.
As the property tax debate moves forward, ITR Foundation will continue bringing these conversations directly to Iowans, grounded in data, guided by principle, and focused on solutions that respect both taxpayers and the essential services they support.
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