April 10, 2026

You Need to Know

It was another shortened week at the Statehouse, with most formal business wrapping up by Wednesday evening. Lawmakers return Monday at 1 p.m. and with the April 21 per diem deadline and June 2 primary elections approaching, momentum is building to bring the session to a close. However, key issues remain unresolved, and the conversations happening now will shape final outcomes. 

CALL TO ACTION | Attend Legislative Forums and communicate with your lawmakers this weekend! Find upcoming legislative forums near you. 

League Priority Legislation

Property Taxes

The Senate advanced a significantly amended property tax proposal, SF 2472 (see full summary below) this week. Though early indications from the House are that substantial negotiations remain before a final bill is agreed to, the passage by the Senate reiterates the Legislature’s intention to pass property tax reform this session. 

It is vital local officials continue to engage with their state legislators. While lawmakers continue making steps towards final adjournment — by introducing and advancing budget bills and hearing retirement speeches for members not seeking reelection, it continues to be critical for city leaders to present the policy solutions developed by the League to their lawmakers, which can be accessed in the League’s Legislative Toolkit.

As an update to this week’s activity at the Capitol, Piper Sandler & Co. is working to model the newly amended Senate bill. The League will be releasing an updated property tax model as soon as this work is completed. For now, please continue to utilize the 2026 Property Tax Reform Model to assess how the House proposal could impact your communities. 

Please remember that the model is intended to inform your conversations with lawmakers. As you engage, use your results to help explain what these proposals mean for your city in practice, including how they may affect your ability to plan, budget and deliver services over time. It is important to look beyond any single-year impacts. If you have questions about how to use or interpret results from the model, please reach out to katieherbert@iowaleague.org. 

These conversations matter. Lawmakers need to understand that while property tax relief is a shared goal among state and local officials, it comes with real trade-offs. Your real-world, on-the-ground perspective is critical to ensuring they have a full picture before they cast a vote. 

Just as important: report back. After connecting with your lawmakers, please share what you’re hearing with the League. Your notes on their feedback are essential as we continue to engage at the Capitol on behalf of Iowa’s local communities. 

Sidewalk Liability | SF 2146 & HF 2359

The League’s sidewalk liability priority bill has a technical amendment which would realign sidewalk liability to the adjacent property owner for future claims. Conversations continue with House leadership to move the bill to the floor for debate. The legislation has already been passed by the Senate.

Legislation to the Governor

HF 2296 | Prohibition on Local Government Issuance of Resident Identification Cards

Amends Iowa Code to prohibit counties and cities from issuing identification cards specific to their jurisdiction for residents. Counties may still issue state-authorized driver's licenses, nonoperator's IDs, and disability ID devices, and both counties and cities may issue identification to employees or elected officials for job-related purposes. The bill aims to standardize identification practices and limit local government authority in this area.

SF 2304 | Alternative Ratemaking for Water and Wastewater Utilities and System Enhancement Infrastructure

Creates a framework for investor-owned water and wastewater utilities to recover system enhancement costs through a commission-approved charge outside of traditional ratemaking. It defines eligible projects, cost components, and the process for plan and charge approval, including annual reconciliation, revenue impact limits, and deferred recovery provisions. The bill also amends acquisition rules to allow recovery of certain transaction costs for utilities that do not meet specified requirements.

League Registered Undecided

Returns to Opposite Chamber for Concurrence

HF 2501 | Election Administration and Procedures Reform

Makes comprehensive changes to Iowa's election laws and the duties of various county officers.The bill consolidates the administration of city election operations at the county level, reducing the role of city clerks in most election functions and shifting responsibilities (including filings, objections, and contesting city election results) exclusively to county commissioners of elections.

League Registered Undecided

SF 2378 | Property Owner Protest Rights in Zoning Changes

Amends Iowa Code to repeal the process by which property owners can submit a formal written protest against proposed changes to zoning districts — a protest that previously required a supermajority vote by the city council for approval. It clarifies the authority of city councils to impose reasonable conditions on property owners as part of zoning changes, provided the conditions are agreed to in writing before the public hearing. The bill also removes references to city compliance with the now-repealed protest process in relation to shooting range zoning approvals.

League Registered Undecided

Passed One Chamber

SF 2472 | Senate Property Tax Reform (as amended on 4.8.26)

• Stretches the transition period from current system from one year (FY27) to three years (FY27-FY29) with a lower valuation cap of 1.75% on the CGFL in FY27 and FY28 — new valuation exempted from this growth cap

  • Minimum budget guarantee of 0.5% in FY27 and FY28

• For FY30 and beyond, the cap is 2-5% on the CGFL — subject to the inflationary budget adjustment factor with new valuation exempted from the growth cap

• Phases residential rollback up to 55% in assessment year 2026 and freezes it at 65% for assessment year 2027 and beyond

  • Adds Homestead exemption calculated as 5% of taxable value up to $35k maximum exemption for assessment year 2026

  • Adds Homestead exemption calculated as 15% of taxable value up to $150k maximum exemption for assessment year 2027 and beyond

  • Maintains the senior homestead exemptions based on decade from 60-100 (60-100% of taxable value) up to $350k maximum exemption

    • Creates a mechanism (Cumulative Adjustment Factor) for Homestead maximum exemptions to increase at the rate of inflation as determined by the Department of Revenue
      

• Freezes multi-residential property rollback at 80% for assessment year 2027 and beyond

• Removes Senior Unencumbered Homestead Tax exemption for “non-voluntary” levies

• Lowers allowable LOSST increase from 0.5% increase to 0.25% increase — subject to voter approval

  • Maintains indexing of the Road Use Tax Fund (RUTF)

• Maintains the business property tax exemption which taxes the first $150k at the residential tax rate in 2025 (current rollback), 2026 (55%), and 2027 (65%)

• Maintains phaseout of the commercial & industrial property rollback rate, but slows the increase to 93% in assessment year 2026 before jumping to 100% in 2027 for valuation beyond the first $150k taxed at residential rate.

• Adopts the “FirstHome Iowa Program” to assist first-time homebuyers with the purchase of a home

• Creates task forces to study Urban Renewal, an Elderly Homestead Program, and a Payments in Lieu of Property Taxes Program

• TIF Provisions:

  • For Perpetual Urban Renewal Areas/TIFs cities are prevented from incurring additional indebtedness

  • Refinancing does not constitute additional indebtedness unless it results in the increase of the amount of debt service or extends the term for repayment or retirement of indebtedness

  • Unless extended by the Department of Management to retire or pay all indebtedness, Perpetual Urban Renewal Areas/TIFs must be closed within 20 years from the effective date of the act

  • Perpetual Urban Renewal Areas/TIFs cannot be expanded after the effective date of the act

  • These requirements do not apply to community colleges under 260E or rural improvement zones under 357H

  • Takes the school foundation levy out of future TIF agreement diversion

  • Takes voluntary EMS levies out of TIF diversion immediately upon enactment

  • Future Urban Renewal Areas/TIFs are limited to 20 years

  • Prevents the use of TIF for relocation of a commercial/industrial enterprise from one Iowa city to another

  • Allows for school boards to “opt-in” all or a portion of their school foundation levy to a TIF diversion agreement by resolution

  • TIF revenues are not allowed to be used for the salaries or benefits of a permanent staff member of a municipality or a local or regional economic development authority

League Registered Undecided

SF 2286 | Public Funds Investment Cap and Joint Investment Trust Oversight

Introduces new regulatory requirements for public fund investments, particularly joint investment trusts, and modifies the entities eligible to hold securities as collateral for public deposits. It establishes a 25% cap on political subdivision investments in joint investment trusts, mandates written risk acknowledgments from participants, restricts payments from such trusts to only bona fide operational service providers, and replaces references to certain credit unions with securities broker-dealers registered with FINRA in relevant sections.

League Registered Opposed

Resources

• Advocacy Toolkits
  

• Property Tax Proposals Comparison
  

• League Legislative Video Library
  

• Sign up to be a Legislative Champion
  

You can view all editions of Legislative Link at iowaleague.org/resource/legislative-link.

Like our membership, the Iowa League of Cities is a non-partisan, service-oriented organization that does not participate in elections, make campaign contributions, or have a political action committee (PAC).