Hunter
01/15/26
Governor Kim Reynolds has introduced a comprehensive property tax reform bill to the Iowa House and Senate that is projected to save Iowans $3 billion over six years.
According to a release from the Governor’s office, Reynolds is standing up a $10 million grant fund to assist local governments who choose to consolidate positions and pursue shared service agreements with neighboring cities and counties.
The bill also proposes to conduct property assessments every three years instead of every two years, and shifts the burden of appealing large property tax increases from homeowners to assessors who will have to justify them.
The bill also reforms Tax Increment Financing (TIF) districts to improve transparency and limit overuse, limiting TIF projects to public purposes for 20 years.
Additionally, Gov. Reynolds’ bill creates a property tax freeze for Iowans ages 65 and older with homes valued at $350,000 or less, improving affordability for seniors living on fixed incomes.
The bill also helps young Iowans who are hoping to buy a home for the first time. FirstHome Iowa Accounts, based on Iowa’s 529 Plan, will empower families to begin saving for a home years in advance, preparing sons, daughters, and grandchildren for home ownership right here in Iowa.
Democratic State Auditor Rob Sand, who’s running for Governor, issued a statement wondering if that means the state will cut spending, He said, “If you’re cutting spending, where are you cutting spending? I hope you’re not cutting it from police officers. I hope you’re not cutting it from public schools. But that equation always is really important, and I would love for them to also talk about the other side of that when they’re talking about property taxes.”