April 14, 2026

Senate Passes Property Tax Reform

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, changes to assessment practices, shifts in school funding, limits on TIF, and varying mixes of exemptions, freezes, and tax base adjustments.

Governor Reynolds and legislative leaders from both parties described this as the first step in negotiations. Their goal is to reach a final property tax reform agreement this year.

Below is a table comparing the proposals:

 Print a PDF
ITR Foundation
Subscribe to the ITR Foundation newsletter:
* indicates required

Let’s be honest, big government is big bureaucracy, and common sense tells us big bureaucracy is ineffective. That’s why ITR Foundation works to:

  • Research principled solutions
  • Educate Iowans about our solutions
  • Activate Iowans in support of our solutions

By applying the principles of limited government, free enterprise, and the rule of law to public policy, we can ensure all Iowans will have the opportunity to succeed.

ITR Foundation set the policy groundwork for many recent taxpayer victories in Iowa:

  • Increased property tax transparency and spending restraint
  • A 3.8% flat individual income tax rate
  • Elimination of income taxes on retirement income
  • Elimination of inheritance tax
  • Creating a path to reduce corporate income tax to 5.5%
  • Phasing-out special tax incentives in the corporate tax code
  • Banning local universal basic income programs