Iowa Senate Passes Bipartisan Property Tax Reform Bill

House Version Still Pending as Lawmakers Negotiate Final Package

Apr. 9, 2026 at 9:09pm

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A serene, cinematic painting of the Iowa state capitol building in warm, golden light, conveying a sense of quiet contemplation as legislators work to reform the state's property tax system.The Iowa state capitol building stands solemnly as lawmakers negotiate a bipartisan property tax reform package.Des Moines Today

The Iowa Senate approved a major property tax reform plan on Wednesday, April 8, 2026, sending Senate File 2472 (SF 2472) to the House on a 41-4 bipartisan vote. The bill has not yet passed the Iowa House, which is advancing its own competing version, House File 2745 (HF 2745). Lawmakers from both chambers and Gov. Kim Reynolds are negotiating to reconcile differences before the legislative session ends.

Why it matters

Property tax reform has long been a contentious issue in Iowa, where the state ranks high nationally for property taxes relative to home values. The Senate's bipartisan support signals progress, but the final scope of relief still depends on ongoing negotiations between the chambers and the governor.

The details

SF 2472 eliminates Iowa's long-criticized 'rollback' formula and replaces it with a flat 50% homestead tax exemption for owner-occupied homes. The exemption would grow with age for senior citizens. The measure also caps annual growth in city and county property tax collections at about 2% (excluding new construction), with limited exceptions for debt, schools, and inflation adjustments. The House's version, HF 2745, takes a stricter approach: a 2% revenue cap that includes new construction for all taxing entities (with school and debt exemptions), shifts to three-year assessment cycles, and limits tax-increment financing districts. It also includes senior tax freezes for lower-value homes.

  • The Iowa Senate approved SF 2472 on April 8, 2026.
  • The House version, HF 2745, cleared committee in March 2026 but has not received a floor vote.

The players

Sen. Dan Dawson

The Republican sponsor of SF 2472.

Gov. Kim Reynolds

The Iowa governor who has pushed for similar property tax reforms, though she has not endorsed either chamber's bill outright.

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What they’re saying

“The vote was a 'good faith effort' to break years of deadlock on an issue where Iowa ranks high nationally for property taxes relative to home values.”

— Sen. Dan Dawson, Bill Sponsor

What’s next

SF 2472 now moves to the House, where it could be amended or replaced by HF 2745. Any differences would go to a conference committee. Changes would not appear on tax bills until fall 2026 at the earliest.

The takeaway

The bipartisan Senate action signals progress on a long-standing property tax reform issue in Iowa, but the final scope of relief still depends on ongoing negotiations between the chambers and the governor.