(Radio Iowa) – House Speaker Pat Grassley says property tax negotiations during the recently concluded 2026 session of the Iowa legislature ended in a good place. “The 2% revenue cap really is going to be what I would say is…the hallmark of this legislation that really limits the growth of new revenue that local governments can take in.” There will be exceptions, however, for like new home construction and for expenses like employee benefits and liability insurance.
The plan provides future property tax relief in other ways, by a homestead exemption worth up to 20-thousand dollars a year on a person’s primary home. There’s also a move to dedicate a greater share of the one percent sales tax for school infrastructure to property tax relief. “I think where we ended was actually a good place,” Grassley said. “A hard 2% cap, allow local governments to pay those critical services that we expect, but at the same time make sure that we’re getting certainty for the taxpayer.”
Grassley made his comments this past weekend on Iowa Press on Iowa P-B-S. Governor Reynolds has expressed support and praise for the package, but has not yet announced when she plans to sign it into law.
