Iowa Department of Revenue Announces Property Tax Reduction Changes | State

(The central square) – The Iowa Department of Revenue announced fiscal year 2023 adjustments as a percentage of taxable property assessment.

Property taxes will be levied in 2022 for the fiscal period July 2021 to June 2022. Payments are due between July 2022 and June 2023.

The annual Valuation Limitations Ordinance published the following cancellation percentages for fiscal year 2023 for county auditors to apply:

  • Agricultural real estate, excluding dwellings on agricultural property: 89.0412%
  • Residential real estate: 54.1302%
  • Commercial and industrial real estate and rail ownership: 90%
  • Multi-residential: 63.75%
  • Utility property: no adjustment

Since last year, the percentages of decline increased for agricultural buildings (84.0305%) and decreased for residential buildings (56.4094% in 2020) and multi-residential buildings (67.5%). Ownership of utilities remains at 98.5489%.

“The 2% drop in residential decline could be significant for cities,” Iowa League of Cities executive director Alan Kemp said Tuesday in The Center Square in an emailed statement. “At this point, cities are at the beginning of the budgeting process, including estimating property tax revenues. They won’t get the final assessed values ​​from the appraiser until early January, but most try to estimate early. The impact will vary considerably from city to city depending on the composition of their property categories and the assessed values ​​in their individual cities.

From the assessment year 2022, multi-residential buildings will be included in the category of residential buildings, under a bill that Iowa Gov. Kim Reynolds signed in March.

SF618, which Reynolds signed in June, is phasing out the replacement of the commercial and industrial property tax for cities and counties starting with the 2023 payment and eliminating replacement payments for school districts after the 2022.

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