(Radio Iowa) – A key lawmaker says there’s common ground among his fellow Republicans when it comes to establishing a two percent cap on property tax growth in Iowa, but Senator Dan Dawson says the legislature should adopt the Senate Republicans’ approach that also would allow additional growth if there’s a spike in inflation.
“We don’t want to be micromanaging local government budgets every year,” Dawson said. “…If we want to, you know, have a limitation that is so stringent, that’s not workable, we will be back in multiple years trying to make adjustments, right? And I don’t have much of an intention to renegotiate with 940-some cities and 99 counties and all the other taxing jurisdictions out there.”
Dawson, a Republican from Council Bluffs, is chairman of the Senate Ways and Means Committee. He describes the Senate G-O-P’s limitation as a soft cap with an inflation lever that will last for the long term. “Building a system that is sustainable,” Dawson said, “and it avoids having the legislature come back in and micromanage during these high inflation environments.”
Republicans, who control a majority of seats in the legislature, have indicated a property tax relief package is a top priority this year. Governor Reynolds said earlier this week she was confident a deal would be struck before lawmakers adjourn the 2026 legislative session this spring. House Democrats like Representative Dave Jacoby of Coralville have suggested a four percent limit on tax growth on each residential property, along with immediate rebates of a thousand dollars for every Iowa homeowner and five hundred dollars for each renter.
“We see a lot of people feeling the strain of everyday living,” Jacoby said. “Our plan actually puts money in their pocket right now and helps the transition to what the property tax outlook will be over the next five years.”
Jacoby and Dawson made their comments during taping of “Iowa Press” which airs tonight (Friday) at 7:30 on Iowa P-B-S.
