November 16, 2021
Iowa residents should be aware of increases in their property taxes for the fiscal year of 2021. Otherwise, they may be in for a shock when spring rolls around and Notices of Assessment are finalized and mailed.
The Iowa property tax rate changes are due to adjustments in rollback taxes by the Iowa Department of Revenue. Rollbacks allow modifications to be made to the taxable values used to determine property taxes. Property owners will pay taxes according to the rollback value, rather than the assessed property value. These rollbacks can lead to tax increases, which could be This is the case for agricultural property. A rollback percentage increase from 84.0305% in 2020 to 89.0412% in 2021 will bring higher tax bills.
Does This Mean All Tax Statements Will Increase?
Not every property type will see a tax increase, and the rollback modifications will not affect the current second-half tax payments due in March. Additionally, the Iowa Department of Revenue hasn’t adjusted rollback percentages for utility properties. The rate remains at 98.5489%. Furthermore, residential realty, railroad property, multi-residential property, and commercial and industrial realty will all see slight decreases in rollback percentages that lower their tax bills.
What Can Be Done If Rollbacks Increase 2022 Property Taxes?
According to the state’s Department of Revenue, Iowa cities, which are looking at next year’s budget, could face significant impacts from these changes. Municipalities facing shortages may need to cut budgets or increase taxes on residents, which could negate tax changes at the state level.
After Notices of Assessment are mailed at the beginning of April, taxpayers have between April 2 and April 30 to appeal and seek a reduction in the value of their property.
Either way, Iowa property owners should pay close attention to the tax bills they receive in their mailboxes. They might differ greatly from previous years.