City Assessor Assessed and Taxable Valuations PresentationCity of Dubuque
City Council Meeting
Action Items # 01.
Copyrighted
January 16, 2024
ITEM TITLE: City Assessor Assessed and Taxable Valuations Presentation
SUMMARY: City Assessor Troy Patzner will make a presentation on 2023 assessed
and taxable valuations.
SUGGESTED Receive and File; PresentationSuggested Disposition:
DISPOSITION:
ATTACHMENTS:
Description Type
Presentation Supporting Documentation
2023 Assessment and Taxably Values
Budgetary Presentation
Dubuque pity Council
January 16, 2024
Troy Patzner, Dubuque City Assessor
Tax Cycle Timing
Jan 1, 2023 --Assessed values are set for changes made to properties
in calendar year2022 including bi-annual revaluation
July 1, 2023 to June 30, 2024 — Ownership and accrual period.
Nov 01, 2023 -- Assessment Limitations ("Rollback") set for each class
by Dept. of Revenue; Auditors can now calculate taxable values.
December to April 2024— Budgetary hearings to determine revenue
needs, and by extension, levy rates.
April 30, 2024 -- New Budget Deadline per S.F. 718 (2023)
July/August 2024 —Tax bills are calculated, mailed to owners.
Sept 2024/March 2025 — First and second half taxes due.
1/16/2024 Dubuque City Assessors Presentation
What Causes Taxes to Change for a Property?
Common reasons:
Changes in governmental spending needs (levy rates)
Changes to credits and/or exemptions
Assessed value changes for parcel(s) including new
construction, revaluation, or credit/exemption eligibility
Legislature "shifts" tax burden between classes of property
Agricultural
Residential/Res3+
Commercial
Industrial
Utilities and Railroads
1/16/2024 Dubuque City Assessors Presentation
What Causes Assessment Changes?
(Revaluation versus New Construction)
Revaluation changes tend to be related to:
Equalization Process (Odd numbered years)
Reappraisal Review
Jurisdiction -wide changes; based on statistics, review, and
can be more subjective in nature.
New Construction changes are typically recent physical
changes to a property ("hammer and nails")
New 2023 legislation mandates the Auditor to file a report
with the Department of Revenue indicating if assessed value
changes were made due to revaluation or new construction.
1/16/2024 Dubuque City Assessors Presentation
Residential Properties
2023 was a unique revaluation year, with historic assessment
value increases made in the City, the county, and the rest of the
state due to an unusually strong real estate market.
For most of the state, assessed values increased from 20%-30%
between the 2021 and 2023 revaluation cycles.
Value Changes due to Revaluation only:
Dubuque City Residential/Res 3+ : 23.52%
1/16/2024 Dubuque City Assessors Presentation
Rollback -- Residential
State's Assessment Limitation, or "Rollback", plays a major role in
tax calculations, working as a counter -balance to assessment
increases by adjusting the percentage of an assessed value that
becomes taxable value.
2023J. Residential parcels receive a 46.3428% rollback factor
meaning taxable value is only 46.3428% of Assessed Value
2022 rollback was 54.6501%
A Department of Revenue error in the calculation of the 2022
Residential rollback caused last Spring's last-minute budgetary
scramble that changed the rollback from an initial 56.49% down
to the final 54.6501%
Not an ongoing issue - due to an IDR misinterpretation of state
code changes for 2022.
1/16/2024 Dubuque City Assessors Presentation
Residential Properties
(Including Res 3+and Ag Dwellings)
Example of how the State's Rollback moderates Taxable values
after large market -driven increases in Assessed values
Last year (2022)
This year (2023)
Change %
Assessed value Rollback Taxable value
$1761000
$2181000
+23.86%
54.6501%
46.3428%
-15.2%
$961184
$1011027
+5.04%
1/16/2024 Dubuque City Assessors Presentation
Commercial and Industrial Properties
Commercial properties saw 20-30% Assessed value increases in most of
Iowa, with Dubuque being also in that range
Industrial properties are not subject to equalization but saw increases in the
City of Dubuque
Per Senate File 619 (2021), the state -reimbursed "backfill" amount is
reduced by 1/8 each year until depleted in FY 2029—$487,841 was
reimbursed from the state for 2023, down from $585,410 in 2022 (a
$97,568 reduction)
"Two-tier Assessment Limitations" replaced the "Business Property Tax
Credit" for 2022
First $150,000 in assessed value for Commercial/ Industrial/Railroad properties
have the same rollback as Residential properties (46.34% in 2023)
Assessed value above $150,000 has 90% rollback for calculating taxable value
1/16/2024 Dubuque City Assessors Presentation
Commercial & Industrial Properties
Example of new Two-tier Limitations Taxable Value calculation:
Assessed value Rollback Taxable value
$300,000 Assessed Value
Assessed
$0-150,000
46.3428%
$69,.510
Assessed
$150,001-300,000
90.0000%
$135,000
Total Taxable Value
$204,510
1/16/2024 Dubuque City Assessors Presentation
Assessed Value Added Due to New Construction
(Partially -exempt and properties in TIF districts are included)
Year City of Dubuque
2023 $51,078,360
2022 $33,210,380
2021 $37,978,310
2020 $40,100,710
2019 $49,891,578
1/16/2024 Dubuque City Assessors Presentation
2023 Total Assessed Value Changes
Agricultural — Dubuque City:
Residential/Res 3+/Ag Dwlg. - Dubuque City:
Commercial - Dubuque City:
Industrial — Dubuque City:
2023 Total Assessed Value Change
+28.38% + $ 1/074/261
+24.26/0 + $852,569,438
+26.25% + $311,298,389
+5.58% + $ 9,458,840
+ $1,174,400,928
1/16/2024 Dubuque City Assessors Presentation
5 Year Review of Taxable Value Changes
2019
$2.511
billion
2020
$2.582
billion
2021
$2.701
billion
2022
$2.689
billion
2023 $2.843 billion
1/16/2024 Dubuque City Assessors Presentation 12
Looking Ahead
2024- As this is an even year assessment (i.e., non -equalization year), most
properties will not see adjustments to value unless changes are made to
the property, or as part of ongoing reappraisal projects
Next major changes to entire jurisdictions will be with 2025 Assessment
To date, fewer homes in total being sold and sales prices remain higher
due to an overall lack of supply of lower -end housing
City of Dubuque continues with area -by -area reappraisal as time allows
1/16/2024 Dubuque City Assessors Presentation
2023 New Legislation
House File 718
Creates levying limits on cities and counties based on amount of taxable
value growth.
Requires new mailings by County Auditors to property owners by March
20t" regarding how proposed levies would affect taxes.
Creates new 65+ Homestead Exemption - $3,250 for 2023, $6,500 for
2024 (not reimbursed).
Increases the Military Exemption from $1,852 to $4000.
Requires Auditors to report the amount of change in assessed values due
to new construction vs revaluation —multiple year review.
1/16/2024 Dubuque City Assessors Presentation
Questions?
Troy W. Patzner
Dubuque City Assessor
1789 Elm Street, Suite A
Dubuque, IA 52001
(563) 589-4416
Troy.Patzner@dubuquecountyiowa.gov
1/16/2024 Dubuque City Assessors Presentation 15