FY25 Proposed Budget

3. the State added a reimbursement or “backfill” to jurisdictions for lost revenue due to the rollback of valuation on commercial, industrial, and railroad properties; this “backfill” is locked at the fiscal year 2017 amounts going forward starting in fiscal year 2018; 4. a new multi-residential class of property was added in fiscal year 2017 that has a declining rollback which will decrease each year until fiscal year 2024 when it matches the residential rollback percentage. In fiscal year 2013, the rollback exempted $1.7 billion of Iowa City’s assessed valuation. In fiscal year 2025, the rollback will exempt $4.2 billion of assessed valuations. The residential and agricultural rollbacks for fiscal year 2025 are 46.3428% and 71.8370%, respectively, compared to fiscal year 2024 rollbacks of 54.6501% and 91.6430%, respectively. Also, beginning in fiscal year 2024 the commercial, industrial, and railroad properties are taxed at the residential rate for the first $150,000 of assessed value and then 90% thereafter, which is different from the fiscal year 2023 rate of 90%. The following graph illustrates the impact of the rollback on taxable valuations.

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