FY27 Proposed Budget

2. A new multi-residential class of property was added in fiscal year 2017 that has a declining rollback decreased each year until fiscal year 2024 when it matched the residential rollback percentage. Multi-residential class of property is no longer used and these properties are now included with residential. The residential and agricultural rollbacks for fiscal year 2026 are 47.4316% and 73.8575%, respectively, compared to fiscal year 2027 rollbacks of 44.5345% and 59.4401%, 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%. In fiscal year 2013, the rollbacks exempted $1.7 billion of Iowa City’s assessed valuation. In fiscal year 2026, the rollbacks will exempt approximately $4.8 billion of assessed valuations. The following graph illustrates the impact of the rollback on taxable valuations.

2. Other City Taxes - This category, estimated at $4.34 million in fiscal year 2027, includes Hotel Motel Taxes of $2,002,600, $434,500 in gas and electric excise taxes, and $2,002,600 in utility franchise taxes. The fiscal year 2027 budget is a decrease of 2.8%

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