- within Tax topic(s)
- with readers working within the Retail & Leisure industries
- within Litigation, Mediation & Arbitration, Food, Drugs, Healthcare, Life Sciences and Intellectual Property topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
Capitol Update
First Day. This year's General Assembly began on Monday, January 12, 2026. The State Constitution dictates that session be held annually starting on the second Monday of January and the Iowa Code directs the General Assembly to convene at 10:00 a.m. The first day began with an Administrative Rules Committee meeting followed by each chamber gaveling in. Leadership from both parties outlined their priorities for the upcoming year.
This session sees a shift in leadership across both chambers. In the Senate, Senator Klimesh begins his first session as newly elected majority leader. Senator Weiner remains the minority leader for Senate Democrats. In the House, Representative Grassley will continue to serve as speaker. However, Representative Kaufmann begins his first session as majority leader, as former Majority Leader Windschitl stepped down over the interim to run for Iowa's Fourth District. Representative Brian Meyer is beginning his first session as the House minority leader as Representative Konfrst runs for Iowa's Third Congressional District.
Republicans maintain a trifecta once again, holding the majority in both chambers and the Governor's office. Through various special elections this past year, the House Republicans maintain their super-majority while the Senate Republicans lost their super-majority by one seat. This means that any appointment by the Governor will need at least one Democratic vote to be confirmed in the Senate.
Two of the most anticipated issues are already seeing action - property taxes and eminent domain/property rights. Both issues carried over from last session, consumed significant time and debate last year, and remain top priorities for lawmakers this session. House Democrats set out their property tax proposal prior to the start of session. This plan would triple the Homestead Tax Credit, cap property tax growth to 4%, include $1,000 rebates to homeowners and $500 to renters, and freeze property taxes for seniors. Senate Republicans released their 103 page property tax bill on Monday, SSB 3001. The bill would eliminate the rollback system and replace it with a flat 50% taxable value discount for homestead properties, phase out property taxes by tax assessment year 2029 or later for mortgage-free homeowners age 60 and older, and index the gas tax to support local services costs. Governor Reynolds presented her property tax vision during her Condition of the State on Tuesday evening. Her plan would cap overall revenue growth for local governments, change property tax assessments from every two years to every three, establish tax deductible savings accounts for first time home owners, and modernize the beginning farmer's tax credits.
As for eminent domain, House Majority Leader Kaufmann stated in his opening remarks the House would address the issue early and quickly. That commitment is already being fulfilled as HSB 507 advanced through subcommittee and full committee this week, making it eligible for floor consideration as early as next Tuesday. Last year's pipeline-related legislation was vetoed by Governor Reynolds in June.
As of Friday, 292 bills were filed and 19 subcommittees had met. The legislature will be off Monday for Martin Luther King Jr. Day and will return on Tuesday. Lawmakers have until January 23rd to submit bill requests for drafting.
Scene on the Hill
January 13, 2026: View from the House Gallery during Governor Reynolds' Condition of the State Address
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
