On May 3rd, 2026, Representative Hans Wilz (R-Ottumwa) voted in support of sweeping property tax reform predicted to deliver roughly $4 billion in relief over 6 years.
Senate File 2472 is the product of months of negotiations and continued feedback from the public. Representative Carter Nordman (R-Dallas Center) led the bill through the Iowa House.
“For too long, the property tax system has put certainty for government budgets over the certainty of family budgets, and with this proposal, we are flipping that script,” Nordman said.
Senate File 2472 delivers for taxpayers by capping out-of-control government spending, buying down education levies, and increasing transparency.
Major provisions of the bill include:
- Direct Property Tax Cuts: The bill lowers the education levy from $5.40 to $4.90 over the next three years, providing immediate relief to every property owner in the state.
- Expanded Homestead Exemptions: By converting the Homestead Credit into an exemption, the bill increases the tax-free value of a primary residence to a minimum of $5,500 (up from $4,850), with a new maximum of $20,000 that adjusts with inflation.
- Accountable Local Spending: New revenue caps on cities and counties provide certainty for taxpayers and introduce some accountability on local government spending.
- Protecting Homeowners from Soaring Valuations: When a property’s assessed value increases by 10% or more, the burden of proof shifts to the government. The assessor must now justify why the bill is going up, rather than the homeowner proving it should stay down.
- Ending “Stagnant” Surpluses: To ensure tax dollars are being used efficiently, local government reserve accounts are now capped at 35%. This prevents the over-collection of taxes for the sake of maintaining excessive cash piles.
- Empowering Local Voters: The bill increases the maximum EMS levy via referendum, allowing local communities to decide for themselves whether to expand access to critical emergency services.
- Enhanced Transparency: Property tax mailers will be revamped to provide a clear, easy-to-read breakdown of exactly where tax dollars are going.
- Supporting Future Homeowners: The new “FirstHome Iowa” program creates tax-advantaged savings accounts—modeled after 529 plans—to help Iowans save for their first home down payment.
“Being the owner of a family business, I know exactly how much a rising tax bill can squeeze a budget,” Wilz said. “By putting a cap on local government revenue growth, expanding the homestead exemption, and buying down the $5.40 education levy, we are providing the predictability that families deserve. This bill is about making sure Iowa remains a place where families can afford to grow and thrive.”
SF 2472 passed the Iowa House with a bipartisan vote of 62-22. It passed the Iowa Senate and now awaits the Governor’s signature.
