March 27, 2026

You Need to Know

It was a quick week at the Capitol, with lawmakers wrapping up floor debate by the end of the day Tuesday. Wednesday was largely reserved for ceremonial events, including recognition of former “Pioneer Lawmakers” and honoring one legislator in each chamber for their public service to Iowans.

Now that we’re on the other side of the second funnel, we expect shorter workweeks as lawmakers shift their focus to advancing key priorities toward the finish line. This includes major issues like property tax reform and eminent domain, alongside continued work on the FY2027 state budget.

Pressure continues to build for lawmakers to deliver property tax relief before adjournment. This makes it all the more important for city leaders to begin or continue sharing their perspectives and real-world impacts with their House and Senate members.

League Priority Legislation

Property Taxes

Now is the time to engage. Lawmakers are moving quickly as we get closer to the end of session, and property tax proposals could reach the floor as soon as next week. The League is strongly encouraging city leaders to take time this weekend to connect with their legislators -- especially via attending local legislative forums happening across the state tomorrow.

These conversations matter. Lawmakers need to understand that while property tax relief is a shared goal, 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. 

To support your outreach, the League is providing advocacy materials to help guide these conversations. In addition, the League will be releasing a property tax modeling tool next week to help communities understand how the proposed bills could impact their city. Please be on the lookout for that resource. 

If you don’t see a forum happening near you, we encourage you to pick up the phone and call them directly. 

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

Sidewalk liability

The League’s sidewalk liability bill is funnel-proof as it has been passed by the Senate and linked in the House. The League will continue to work to ensure this bill clears the House and is sent to the Governor’s desk.

Policy Guidance for Property Tax Reform

Right-Sizing the 2% Cap

If a 2% revenue cap is adopted, it belongs on the general fund levy -- not on levies that pay for costs that cities don't control. Tort liability, insurance costs and benefits obligations are outside of a city's control, but would quickly eat through a budget under a 2% cap on all levies. Insurance costs alone have increased ~20% annually since 2020. 

For more on the impacts of the problem and policy solution, see the League's 2% Cap Guide.

Essential Operations and Equipment Bonding

No local government entities should be utilizing bonding or indebtedness for salaries or benefits, and therefore the prohibition on this activity is a welcome codification of best practice. However, the current language is vague enough to cause concern that public safety equipment, infrastructure, and capital improvement projects would be prevented from being bonded by cities.

For more on the impacts of the problem and policy solution, see the League's Bonding Guide.

New Valuation

Under current law, cities are discouraged from economic development because any increase in valuation — whether from revaluation or new growth — can negatively impact revenues under HF 718.

For more on the impacts of the problem and policy solution, see the League's New Valuation Guide.

Local Options Sales and Service Tax

Iowa’s funding of local government has historically relied too heavily on property taxes. Local governments agree that taxpayers need to be at the center of the property tax conversation. Adopting Division IX of SF 2472 allows for local government funding diversification only upon a vote of the taxpayers, and will allow cities to deliver even further property tax relief while preserving service delivery should a community vote for it.

For more on the impacts of the problem and policy solution, see the League's LOSST Guide.

To the Governor

SF 2086 | Junior Firefighter Program

Allows schools to create a junior firefighter program for juniors and seniors. Requires the school to coordinate with the local fire department. Requires the school to have an agreement in place with a FF department prior to starting the program. Includes training requirements for the program and that the instructor be from the fire training bureau or certified by the bureau. Allows the coursework to be used for certification after a student turns 18.

HF 2522 | Public Official Insurance Policies

Strikes provisions approved in 2024 that require the state to be the beneficiary of an insurance policy purchased by public officials who are required to be bonded, in lieu of bonding.

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).