House Speaker Pat Grassley says property tax negotiations during the recently concluded 2026 session of the Iowa legislature ended in a good place. “The 2% revenue cap really is going to be what I would say is…the hallmark of this legislation that really limits the growth of new revenue that local governments can take in.” There will be exceptions, however, for new home construction and for expenses like employee benefits and liability insurance. The plan provides future property tax relief in other ways, by a homestead exemption worth up to 20-thousand dollars a year on a person’s primary home.
