Property Tax Reform
Rep. Ann Meyer shared the impact of Senate File 2472, which passed in 2026. This bill to reform Iowa property taxes, which will impact property taxes starting September 2027, will do the following:
- Limits growth to 2%, except for debt service levies, K-12 school funding, special revenue levies, liability insurance, and employee benefits.
- Repeals the flat Homestead Credit, upgrading it to a 10% structural exemption on a home's value. Pre-existing senior and military exemptions will remain.**
- Creates a First-Time Homebuyer Savings Account, working much like the Iowa 529 Plan, to help people buy a home. It allows a deduction from State taxable income, of up to $4K per individual or $8K per married couple.
- Permanently buys down the K-12 Uniform Foundation Property Tax Levy.
- Prohibits local governments from issuing bonds or using debt service funds to balance day-to-day operationg expenses.
- Caps unassigned general fund cash reserves to 35%.
- Shifts the burden of proof to the Assessor, when one's property assessment increases by more than 10% over a two year cycle, away from the taxpayer.
**Special Note: After Rotary, Mel Schroeder went to the Web. Co. Courthouse to ensure he and is wife were getting the senior exemption on his property taxes. He was told he did not need to renew it every year, just if he moves. He notified Ann, who asked that this be shared with the club.
Post-Election Changes:
Ann reported that the House's Republican majority is lower than it was, and the Senate's Republican majority changed by one seat. Rob Sand, a Democrat, won the Governor's seat. He ran as a moderate, and may bring more checks and balances. This may not be a bad thing.