Governor Kim Reynolds says she and members of the Iowa House and Senate are “laser focused” on taking action on property taxes during the 2026 legislative session.
“Total cost of government — that’s what we’ve really focused on and the impact it has on taxpayers,” Reynolds said during an online public hearing Friday morning. “There’s a lot of duplication out there. We’ve streamlined at the state level. It’s our expectation that local governments find a way to streamline as well.”
Reynolds hosted the hour-long public hearing to gather input from representatives of several interest groups. Chris Hagenow, president of Iowans for Tax Relief, urged state leaders to limit local government spending and proposed a two percent annual cap on property tax growth.
“There can’t be any loopholes or carve outs for that,” Hagenow said. “Because as we have seen over and over, if you create an escape hatch, local governments will find that often. They’ll find another way to collect that revenue, and it gets back into the problem of how much Iowans are being asked to pay.”
Hagenow, who previously served 12 years in the Iowa House including four as House Republican leader, acknowledged the complexity of the issue.
“Property taxes is incredibly complicated and we all understand that,” Hagenow said. “But the solutions here lie not in how we pay property taxes, but how much we pay in property taxes.”
Some lawmakers have discussed proposals such as freezing property taxes for Iowans age 65 and older, but Hagenow said that approach favors one group over others.
“That’s why we think a hard, across-the-board revenue limitation benefits everyone, whether it’s seniors or any other kind of tax type,” he said. “Let’s just provide a benefit for everyone.”
The Iowa Cattlemen’s Association also testified, urging the governor to end a state property tax exemption for fruit orchards and timber areas. Kelli Klink of the association said the exemption shifts the tax burden onto others.
“When land comes off the tax rolls due to the fruit and forest reserve exemption, it places a greater tax burden on the Iowa cattlemen who own pasture and do live and work in this state and their communities,” Klink said.
Representatives from groups including the Iowa Farm Bureau and the Iowa Business Council told the governor they are willing to work with state leaders on property tax changes, but they did not offer specific proposals during the hearing.
