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Reynolds Makes 2% Property-Tax Revenue Cap the Focus of Final Iowa Address

Republican majorities now steer debate over the plan during the 100-day session.

Overview

  • The governor, who announced last spring she will not run again, delivered her final Condition of the State from the Iowa House chamber in Des Moines.
  • Her proposal would cap how much local governments can raise property‑tax revenue at 2% per year and reduce how often assessments occur.
  • She said property taxes have increased more than 10% over the past two years, framing the growth as unacceptable.
  • Senate Republican Dan Dawson introduced a separate plan that lowers rates as inflation rises and provides a 50% homestead discount on taxable value.
  • With Republicans controlling both chambers, lawmakers begin a roughly 100‑day window to assess budget tradeoffs for cities, counties and schools and to revisit eminent domain issues tied to a proposed carbon‑capture pipeline.