A key lawmaker says there’s common ground among his fellow Republicans when it comes to establishing a two percent cap on property tax growth in Iowa

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A key lawmaker says there’s common ground among his fellow Republicans when it comes to establishing a two percent cap on property tax growth in Iowa, but Senator Dan Dawson says the legislature should adopt the Senate Republicans’ approach that also would allow additional growth if there’s a spike in inflation.

“We don’t want to be micromanaging local government budgets every year,” Dawson said. “…If we want to, you know, have a limitation that is so stringent, that’s not workable, we will be back in multiple years trying to make adjustments, right? And I don’t have much of an intention to renegotiate with 940-some cities and 99 counties and all the other taxing jurisdictions out there.” Dawson, a Republican from Council Bluffs, is chairman of the Senate Ways and Means Committee. He describes the Senate G-O-P’s limitation as a soft cap with an inflation lever that will last for the long term.

Republicans, who control a majority of seats in the legislature, have indicated a property tax relief package is a top priority this year. Governor Reynolds said earlier this week she was confident a deal would be struck before lawmakers adjourn the 2026 legislative session this spring.