Several Carroll County supervisors expressed concerns during this morning’s (Monday) meeting over what proposed property tax reforms would do to the county’s budget if approved. Currently, three plans have been put forward. The Senate is proposing eliminating property taxes for homeowners age 60 or older who have paid off their mortgages, a 50-percent valuation decrease for all other homeowners, and revenue growth caps for municipal governments. The House and the governor’s plans are more similar, with limits on budget growth, a property tax freeze for seniors, and tax exemptions for residential properties. Board Chair Gene Meiners says the Senate’s proposal seems most likely to be approved at this point.
District 1 Supervisor Scott Johnson says the county cannot simply absorb a million-dollar cut and quips that the county may have to get creative in what services are eliminated or reduced.
Meiners doesn’t deny that there are likely some cities and counties in Iowa that levy far more than is necessary, but he argues that the legislature is using a sledgehammer to crack a nut.
Based on Fiscal Year (FY) 2026 data from the Iowa Department of Management, Carroll County currently has the 14th lowest property tax rate of Iowa’s 99 counties. The Senate’s plan proposes offsetting revenue reductions by implementing an additional gas tax that increases by up to one cent per year and a voter-approved 50-percent increase to Local Option Sales Tax (LOST), from one percent to 1.5 percent. All three bills remain eligible for debate and potential approval, as they are not subject to the Iowa Legislature’s “funnel” schedule.
