May 6, 2026

Legislative Adjournment Sine Die

In the coming weeks the League will host webinars and publish our annual New Laws of Interest report to cover the complete list of relevant legislative changes for Iowa's cities. Today we'll walk through first impressions and process for the property tax reform bill that passed on the final day of session. 

The League will continue to analyze this bill to better understand the nuances and long-term impacts of this legislation. Stay tuned to League channels for updates. 

What You Need to Know

Property tax reform negotiations went down to the wire. It was a hard-fought finish, with final agreements coming together after over 33 consecutive hours of back-and-forth between the House, Senate and Governor’s office. The League team remained engaged and present until the very end. The bottom line: property tax reform passed, and your advocacy made a difference.

It’s important to note that property tax reform has been a sustained priority at the statehouse. Soon following significant discussion during the 2025 session, Governor Reynolds identified property tax reform as a top legislative priority heading into 2026. With individual proposals introduced by the House, Senate, and Governor’s office at the outset of session, there was clear alignment that some form of reform would be enacted this year. 

Throughout this session, input from city officials and the League helped to inform conversations as the bill took shape, contributing to a final product that reflects a balance of priorities and a more sustainable framework moving forward. The final bill maintains a 2% growth framework applied to the CGFL, reflecting one of the key policy elements discussed by the League in conversations. While we did not secure everything we sought, we helped shape key components of the final package, including refining how the framework applies to cities and maintaining important elements of budget flexibility. 

Some Major Points of the Property Tax Bill:

• No cap on: debt service, trust & agency, school funding, city “special” revenue levies (e.g. unified law enforcement, tort liability/property insurance, employee benefits or others under 384.12) 

• The $8.10 levy limitation deadline is extended two years to FY31 

• Requires DOM to adopt the League Taxpayer Notice Form (a 2026 League Legislative Priority)

The League is working on a full analysis of the property tax bill, but you can review the outline of the bill here: SF 2472 Property Tax Highlights.

What's Next

After some much needed rest for our Government Affairs team, we will be hitting the interim running. As we are in an election year, there will be opportunity to amplify the ideas, concerns and goals of our members over the next several months. Please keep an eye out for more information regarding this soon. 

Our first immediate action will be conducting in-depth analysis on the final property tax bill to provide members with large-scale takeaways, along with more granular insights. For now, please look at the above document for a high-level overview of the main components of the bill. 

Thank you for your continued engagement and for sharing your perspectives throughout the legislative session. The League team had multiple lawmakers communicate that they had heard from and advocated for their cities’ requests in these property tax discussions. Your input plays an important role in shaping conversations that impact cities across Iowa. We look forward to continuing to support you as we move into the legislative interim.

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).