Following the conclusion of the third week of the legislative session, lawmakers are continuing to address many issues related to Greater IC’s 2026 Public Policy Priorities, including workforce development, housing, and tax reform. We have spotlighted relevant legislation that impacts our businesses and community below:
Property Tax Reform
Property tax reform continues to be one of the prime concerns for legislators, with the bills proposed by both the Governor and House Republicans advancing out of subcommittee last week. Though the two proposals share some similarities, such as the 2% revenue cap for local governments, there are a few notable differences:
Governor Reynolds (SSB 3034/HSB 563)
- Move property assessments from every two years to every three years
- Mandate a 20-year sunset for Tax Increment Financing
- Freeze taxes for Iowans 65 or older if their home is valued at $350,000 or less
- Create a tax-deductible saving account for first time home buyers similar to the 529 education savings accounts
House Republicans (HSB 596)
- Require the Iowa Councils of Government (COGs) to provide assistance with “coordination, planning and technical assistance for local government entities for the purpose of consolidating, sharing or regionalizing services.”
- Require that bonds payable through property taxes receive a 60% vote of approval to pass
- Exempt the first $25,000 of every residential property’s value from taxation
Legislators heard from both advocates and critics of these policies in two legislative hearings last Thursday. Cutting costs for taxpayers remains at the center of the two bills, though many local government leaders cited concerns over loss of funding and service provisions. Legislators stated they will continue to work with their colleagues to reach a consensus on how best to re-structure the property tax system, which will most likely include a combined package of the two proposals. The outcome of these negotiations will have significant impacts on local government and economic development, and Greater IC will actively engage in discussions with legislators.
Community Development and Housing
- (HF 2074 / SF 2107): Allows cities to create “entertainment districts” which permit the consumption of alcohol in certain public spaces. Districts are defined as “licensed premises that allow for the possession and consumption of alcoholic liquor, wine, and beer on public roadways, sidewalks, and other public spaces within the boundaries of the district.” The subcommittee has recommended passage.
- (HSB 563): In addition to proposed changes to property taxes, county officer elections, and urban renewal areas, this bill establishes a FirstHome Iowa program that allows citizens of the state to invest money in a public trust for future application to the payment of qualified homebuyer expenses. The subcommittee has recommended passage.
Childcare and Workforce Development
- (HSB 500): In relation to childcare assistance available to childcare providers, this bill enables children of childcare workers to be eligible for the state’s childcare assistance program. The subcommittee has recommended passage.
- (HSB 609): This bill would require the Workforce Development Board to establish a comprehensive initiative to address the state’s cyber and artificial intelligence workforce needs. The subcommittee has recommended passage.
Looking Ahead
The first “funnel” week deadline is approaching on February 20. This will determine what bills move forward in the legislative process, and Greater IC will continue to monitor these issues closely and track the progress of this legislation as the session continues.
We invite you to join us for our upcoming legislative forums for the opportunity to engage with legislators and discuss these topics one-on-one, the first of which will be taking place this Friday.
February Legislative Forum
Friday, February 6
4:00 pm – 5:00 pm
Urban Acres, Coralville
Register Here
Legislative Reception in Des Moines
Monday, February 23
5:00 pm – 7:00 pm
Big Grove, Des Moines
Sponsored by BrownWinick Law Firm
March Legislative Reception
Friday, March 13
4:00 pm – 5:00 pm
MERGE, Iowa City
Register Here
