Assessment Rollback Protects Your Property Tax Bill

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How much did your assessment increase?

Many people saw the value of their home increase by 20% or more, but that does not mean their property taxes are going to increase by 20% thanks to a law on Iowa’s books called the rollback.

The rollback percentage is adjusted each year by the Iowa Department of Revenue. Last year, the rollback rate was 54.6501%. This year, due to the growth in valuations across the state, the rollback rate dropped to 46.3428%.

The rollback percentage is a form of assessment limitation that helps keep property taxes from growing too fast.

The example below shows how the rollback is used to limit the property taxes paid by taxpayers when there are large increases in the assessed value.

As you can see from the above example, the property's assessment increased, but the tax bill decreased because of the rollback.

So, even though many properties across Iowa saw record assessment growth, taxes should not increase that much. However, many jurisdictions will choose to increase the levy rate to make you pay more.

The rollback was first applied in 1978, permitting a 6% growth in the taxable value of residential property. From 1980 through 2012, the allowable growth rate was reduced to 4%. Beginning in 2013, the growth limit is 3% statewide.

Below is a full history of Iowa’s residential rollback percentage. The steep drop from 2022 to 2023 shows that the rollback is reacting to the inflationary pressures on home values, which is what it is intended to do -- to protect property taxpayers.

© 2023 Iowans for Tax Relief and ITR Foundation