Iowa Department of Revenue announces changes to property tax rollback


The Iowa Department of Revenue has announced the fiscal year 2023 adjustments in percentage of property valuation that can be taxed.

The property taxes will be levied in 2022 for the tax period of July 2021 to June 2022, according to a news release. Payments are due between July 2022 and June 2023.
The annual Assessment Limitations Order released the following fiscal year 2023 rollback percentages for county auditors to apply:

  • Agricultural realty, not including homes on agricultural properties: 89.0412%
  • Residential realty: 54.1302%
  • Commercial and industrial realty and railroad property:  90%
  • Multi-residential: 63.75%
  • Utility property: no adjustment

Since last year, rollback percentages have increased for agricultural realty (84.0305%) and decreased for residential realty (56.4094% in 2020) and multi-residential property (67.5%). Utility property continues at 98.5489%.

“The 2% decline in the residential roll back could be significant for cities,” Iowa League of Cities Executive Director Alan Kemp told The Center Square. “At this point, cities are early in the budgeting process, including estimating property tax revenues. They will not get the final taxable values from the assessor until early January, but most attempt an early estimate. Impact will vary greatly from city to city depending on the make-up of their property classes and the taxable values in their individual cities.”

Beginning in the 2022 assessment year, multi-residential properties will be included in the residential property class, under a bill Iowa Gov. Kim Reynolds signed in March.

SF618, which Reynolds signed in June, phases out commercial and industrial property tax replacement for cities and counties beginning with the fiscal year 2023 payment and eliminates school district backfill payments after fiscal year 2022.