FY2024 Proposed Budget

December 19, 2022 Page 2

• 40 percent of the actual value of the property that exceeds $0 but does not exceed $20 million. • 35 percent of the actual value of the property that exceeds $20 million but does not exceed $55 million. • 25 percent of the actual value of the property that exceeds $55 million but does not exceed $500 million. • 20 percent of the actual value of the property that exceeds $500 million. 10-Year Financial Impact Projection for the City

Not Subject to State Backfill

Subject to State Backfill

Multi-Residential 3% Growth Com/Ind

Com/Ind

Com/Ind

Total Property Tax Reduction 1,321,240 $

Properties (1)

Limit

Rollback

Total

Rollback - Year 1 Rollback - Year 2 Total

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

$

- -

306,121 $

$

- - -

306,121 $

$

1,015,119 1,017,657

$

-

1,015,119 $

627,423 982,915

627,423

1,017,657

2,035,314 1,460,203 1,460,203 1,460,203 1,460,203 1,460,203 1,460,203 1,460,203 1,460,203

2,662,737 3,294,863 3,931,186 4,665,055 5,384,024 6,213,242 7,023,218 7,954,105 9,244,954

851,745

1,834,660 2,470,982 3,204,852 3,923,821 4,753,038 5,563,014 6,493,902 7,784,750

730,102 730,102 730,102 730,102 730,102 730,102 730,102 730,102

730,102 730,102 730,102 730,102 730,102 730,102 730,102 730,102

1,116,560 1,396,497 1,692,226 2,004,442 2,333,868 2,681,255 3,428,308

1,350,772 1,757,911 2,177,375 2,638,952 3,115,578 3,637,715 4,177,423

3,651

50,443 54,219 109,644 113,569 174,931 179,019

Total

$

15,504,902

20,772,185 $

685,477 $

36,962,564 $

$

7,873,589

$

6,858,470

14,732,059 $

51,694,623 $

(1) 3% annual value growth (2) At current property tax rate

New legislation During the 2021 legislative session, the State of Iowa legislature passed new legislation to phase out the State’s backfill payments to local governments for lost revenue due to the commercial and industrial rollback provisions of the 2013 property tax reform bill. Starting in fiscal year 2023, the City’s backfill payment from the State will be reduced by 20% per year until it is fully phased out in fiscal year 2027.

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