Iowa House Democrats announce property tax reform proposal
Hunter
01/06/26
Iowa House Democrats have weighed in on property tax reform, announcing a proposal that would cap yearly increases at 4 percent.
The Gazette reports the proposal also includes tripling the Homestead Tax Credit, freezing property taxes for Iowans 65 and older, and more state support for public safety workers’ retirement funds.
It also includes a $1,000 rebate for homeowners and a $500 rebate for renters for two years before the 4 percent cap is implemented — a similar component of the House Democrats’ plan in 2025, which didn’t advance in the Republican controlled legislature.
Representative Dave Jacoby of Coralville announced the proposal in Des Moines on Monday.
Jacoby: “The House Democrat property flat tax proposal offers certainty. This is a certainty that we have not seen in years. Certainty for homeowners, certainty for renters, certainty for our schools, cities and counties. It also offers our aging population the opportunity to stay in their homes and to stay in Iowa.”
The rebates for homeowners and renters would be funded through the Iowa Taxpayer Relief Fund, a state account comprised of unspent state general fund revenue, designated to provide relief to Iowans, according to Jacoby.
The party still is waiting on a cost estimate from the nonpartisan Legislative Services Agency.
Governor Kim Reynolds is expected to share her proposal during the annual Condition of the State address on January 13th, when she lays out her legislative priorities for the session.