Iowa officials were very clear at the beginning of the 2026 legislative session that property tax reform would be a central policy issue this year. They were not alone in seeking to advance limits on property taxes, as numerous states across the country have pursued structural reforms to bring greater fiscal discipline to the local level. Tennessee, in particular, with Republicans controlling the House, Senate, and Governor’s office, stood out as a state with a strong reform proposal and a seemingly high likelihood of passage.
Unfortunately for residents of the Volunteer State, legislation that would have limited local governments to property tax increases of no more than 2% annually was tabled by a legislative committee and failed to move forward. We attributed that defeat to “the local governments’ taxpayer-funded lobbying brigade.” Thankfully for Iowans, property tax reform bills have advanced in both chambers and there remains a strong likelihood that major reforms will pass this year, even as the legislative session is now officially in overtime.
There are similar dynamics in play for local governments in Tennessee and Iowa. Too many communities of all sizes in both states have seen double-digit property tax increases in recent years, often driven by local governments that have failed to prioritize spending and living within their means. In Iowa, for example, Des Moines faced a $17 million budget shortfall in 2026, yet the city council approved $7 million to help subsidize the construction of a pro-soccer stadium, with additional support from Polk County. This reflects a broader mindset among local government officials that economic growth must be driven by public spending.
Opposition to property tax reform has followed a familiar pattern, with local governments and even some media voices warning that limits will inevitably lead to cuts in essential services like police, fire protection, and infrastructure. These arguments are often framed to suggest that even modest tax relief comes at the cost of public safety or basic quality of life. But the recent surge in property taxes is not the result of insufficient resources; it reflects a lack of fiscal discipline. When local officials are able to raise taxes without meaningful constraints, they tend to do so, often prioritizing projects that benefit narrow, organized interests while spreading the cost across taxpayers.
Without property tax limitations, homeowners, renters, and businesses will continue to get squeezed until there’s no more juice. And all the hard work our respective state leaders have put into making Tennessee and Iowa attractive places to live, work, and raise a family will be squandered.
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