DES MOINES, Iowa — The Iowa Senate approved a major property tax reform plan on Wednesday, April 8, 2026, sending Senate File 2472 (SF 2472) to the House on a 41-4 bipartisan vote. The bill has not yet passed the Iowa House, which is advancing its own competing version, House File 2745 (HF 2745). Lawmakers from both chambers and Gov. Kim Reynolds are negotiating to reconcile differences before the legislative session ends.

SF 2472 eliminates Iowa’s long-criticized “rollback” formula and replaces it with a flat 50% homestead tax exemption for owner-occupied homes. The exemption would grow with age for senior citizens. The measure also caps annual growth in city and county property tax collections at about 2% (excluding new construction), with limited exceptions for debt, schools, and inflation adjustments. Supporters say the changes would simplify taxes, deliver predictable relief to homeowners, and curb local spending growth.

Sen. Dan Dawson, R-Council Bluffs, the bill’s sponsor, called the vote a “good faith effort” to break years of deadlock on an issue where Iowa ranks high nationally for property taxes relative to home values. Most Democrats joined Republicans in support.

The House’s version, HF 2745, takes a stricter approach: a 2% revenue cap that includes new construction for all taxing entities (with school and debt exemptions), shifts to three-year assessment cycles, and limits tax-increment financing districts. It also includes senior tax freezes for lower-value homes. The House bill cleared committee in March but has not received a floor vote.

Gov. Reynolds has pushed for similar reforms, projecting billions in long-term savings through caps, senior relief, and first-time homebuyer incentives. She has not endorsed either chamber’s bill outright but remains optimistic a final package can be reached in the coming weeks.

What Happens Next

SF 2472 now moves to the House, where it could be amended or replaced by HF 2745. Any differences would go to a conference committee. Changes would not appear on tax bills until fall 2026 at the earliest. While the bipartisan Senate action signals progress, the final scope of relief still depends on ongoing talks between the chambers and the governor.

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