Key Iowa lawmaker on property tax reform: ‘We’ve got to talk about the taxpayer’

DALLAS CENTER — Addressing residential property taxes continues to be the top priority of statehouse Republicans, Gov. Kim Reynolds and legislative leaders said Thursday.

Reynolds and two Republican lawmakers on Thursday held a roundtable discussion on property taxes with Central Iowa local government leaders.

The event, at the Roy R. Estle Memorial Library in Dallas Center, was closed to the public and press; Reynolds and the lawmakers talked to reporters after the event.

Reynolds and the Republican-majority Iowa Legislature in 2023 passed property tax legislation that sought to achieve a reduction in future property tax growth primarily by merging most local government and school property taxes into one general levy, then installing mechanisms that reduces that levy if taxable valuation grows beyond a certain level.

After the 2024 election, Republicans returned to the statehouse saying they were still hearing about high property taxes and pledged to take another legislative crack at the issue. Legislative leaders worked on the topic throughout the 2025 session, but no proposal earned enough support to be passed into law.

“The No. 1 priority has been property taxes. We hear that loud and clear every time. Everywhere we go, people are just frustrated to see their property taxes continue to increase,” Reynolds said. “I said I understand that, but you’re going to have to take a look at how we deliver services differently. And if that’s not something that they’re willing to do, we’re probably stuck with what we have right now.”

Republican Iowa Reps. Carter Nordman, of Dallas Center, and David Young, of Van Meter, joined Reynolds and the local leaders for Thursday’s roundtable discussion. Nordman is the newly minted chairman of the Iowa House Ways and Means Committee that manages all legislation related to tax policy.

“What I think is important is that the governor is going around the state, to every part of the state and listening to concerns, listening to how when we do something at the statehouse how it’s going to affect their businesses, how it’s going to affect the communities, how it’s going to affect the counties and the cities,” Nordman told reporters. “So I think these are good opportunities to listen to those concerns while we work to craft legislation.”

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Passing legislation that will provide meaningful residential property tax relief has proved challenging in part because of the state’s complex property tax system, and in part because property taxes are a main revenue source for local government services — like public safety — and public schools.

Nordman said consideration also must be given to individual property taxpayers.

“We talk so much about the government entities, the ones who are collecting the taxes. But we don’t talk enough about the people who are paying them,” Nordman said. “And when we talk about sustainability, well, it’s not becoming sustainable for the 85-year-old woman who can no longer afford to live in her home on a fixed income. So we’ve got to talk about the taxpayer and make sure they are the ones in the driver’s seat during these conversations.”

Young talked about trying to thread the legislative needle between property tax relief and ensuring important local services remain funded.

“We want to make sure that we put the property tax owner first, the citizens first, but not forgetting that there are so many important services out there that communities need, and that your county and city government, they have tough jobs,” Young told reporters. “So we’re trying to encourage communications between residents and their local governments. And you know, the issue is generally a pretty local issue. But we’ve heard enough about it that here at the state level we need to do something.”

At least two of the Republican candidates for governor in next year’s election — Reynolds announced earlier this year that she will not seek another term — have said they are working on plans that would phase out and eventually eliminate residential property taxes.

“I’d like to see that plan on paper. That’s not something that’s going to happen overnight,” Reynolds said. “But if they’ve got an idea to make that happen, you got to pay for these services one way or the other. There’s just a cost to providing them.

“So I’d be interested in seeing what the plan is. But hey, I respect the fact that they’re talking about bringing property taxes down. And so from that perspective, we’re all singing from the same page.”

Comments: (515) 355-1300, erin.murphy@thegazette.com

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