Reynolds predicts property tax relief measure will pass 2026 legislature

(Radio Iowa) – Republican lawmakers have yet to strike a deal that would revamp Iowa’s property tax system, but Governor Reynolds says she’s confident an agreement will be reached. “It’s a priority of Iowans that are paying those taxes,” Reynolds says. “They expect us to get it across the finish line this year and I believe that we will.”

There have been discussions among legislators for the past couple of years on a variety of options, but for the first time Reynolds unveiled her own plan in January. She met privately this week with House Speaker Pat Grassley and Senate Republican Leader Mike Klimesh to discuss what’s next. “Our conversations continue to be very positive and very productive,” Reynolds said. “We’re putting in the effort that Iowans deserve and I have every reason to believe that we’ll ultimately have a bill that will get through both chambers and get to my desk and will work for Iowans.”

It appears G-O-P lawmakers are prepared to pass a limit property tax revenue growth and provide some sort of reduction in property taxes paid by older Iowans. The outlier in discussions appears to be a proposed gas tax increase outlined in the plan from Senate Republicans. Reynolds says she’s in the middle of negotiations and she’s not going to say whether she supports or opposes that. “I want to tell you,” Reynolds said laughing, “…but I want to reduce the tax burden on Iowans. I think that’s where we’re all coming from.”

Reynolds did offer some of the reasoning behind the idea of raising the state gas tax — which hasn’t been raised for over a decade. “We continue to see declining revenue for meeting the needs with the roads and bridges out in the counties, especially, and then some of the cities. And so the thought is that would help address that as we move forward,” Reynolds said. Reynolds made her comments yesterday (Wednesday) during a news conference at the statehouse.