DUBUQUE, Iowa (KCRG) — “Spending is what drives taxes. Always has, always will,” said Gov. Kim Reynolds. “The most reliable way to protect taxpayers is to limit the growth of government itself.”
Reynolds unveiled her property tax reform bill in the first week of the 2026 Iowa Legislative Session, including a 2 percent cap on local government revenue growth.
“That way, they can’t grow faster than the families who pay the bills,” said Reynolds.
Dubuque County Supervisor Harley Pothoff says the county’s revenue growth typically keeps up with inflation, exceeding the proposed 2 percent cap. The difference could cost the county hundreds of thousands of dollars in revenue if Governor Reynolds’ proposal becomes law.
“We’re going to have to figure out ways to consolidate services or cut spending somewhere,” Pothoff said.
Pothoff says the cuts would come as some county services, like road maintenance, are already being affected by cost of living increases.
“They’re doing less now than they were 10 years ago because the cost of the asphalt, the cost of concrete, the cost of labor, everything keeps going up, so they’re not able to do what they used to be able to do,” Pothoff said.
Republican state Rep. Jennifer Smith of Dubuque County supports property tax reform, but she doesn’t want to see services cut.
“People are terrified and they are having a really hard time with the high cost of the property taxes,” said Smith. “We’re all trying to trim down our spending. That’s the overall goal.”
Smith suggests sharing resources, an idea backed by another proposal by Gov. Reynolds, offering $10 million in grants to help counties consolidate services.
“What other things can we do? What other jobs or positions can be shared to help lower that burden or that cost for different counties,” Smith said.
Pothoff says that’s something Dubuque County is already doing with a county engineer and surveyor. He says an across-the-board 2 percent cap would unfairly harm local governments that support more services, like a county hospital.
“Not every county has a county hospital,” said Pothoff. “The county hospital costs me nearly $3 million a year. [Other counties] don’t have that expense, so to limit what we can collect to the same as what a county that doesn’t have it collects isn’t really fair.”
TV9 asked Smith about Pothoff’s concern.
“I am trying to figure out how to balance that. That is something that is very top of mind when we are talking at the state legislature,” said Smith. “We have really good actors that are […] good in efficiency in their own budget, but then we have others that are not and so we are trying to figure out.”
Pothoff wants the legislature to look at each county individually before taking action on a 2 percent cap.
“I just think everybody has to pull together to make this fair,” Pothoff said.
Smith said the legislature is also looking to provide property tax relief to Iowans, like some older Iowans who fear being priced out of their own homes by rising property taxes.
“That is just unacceptable. These are the people who have done everything correctly throughout their whole lives and now they’re being punished because of that and I don’t think that should be the case,” said Smith.
Gov. Reynolds’ proposal includes a property tax freeze for Iowans ages 65 and older with homes valued at $350,000 or less, and a program to help Iowans hoping to buy a house for the first time achieve homeownership. Smith says she needs to give these ideas some thought.
“The moment you start freezing or giving tax breaks to that group now you’re shifting the burden to others,” said Smith, who noted the legislature is likely months from reaching a resolution on property tax reform.
“Don’t anybody panic yet. There are all these proposals being put out there. Please do let us have your feedback as to where you think these would impact you, but don’t panic at this point. Nothing has been decided,” said Smith, who noted she can be reached for feedback at [email protected].
