Iowa Department of Revenue 2023 Rollback Order

Waterloo, Iowa (December 20, 2023) - In an effort to better inform the public about the Iowa Department of Revenue’s rollback order, the City of Waterloo is sharing the following information:

Last month, the rollback order was issued that applied to January 1, 2023 assessments. This impacts taxes payable in September 2024 and March 2025. The order drops the residential rollback (percentage of residential property that is taxable) from 54.6501% to 46.3428%. 

Once the Black Hawk County Assessor’s Office determines the market value of a property, a rollback percentage (or assessment limitation) is applied to determine the taxable value of the property. The property tax levy is applied to the taxable value, thereby determining the property tax bill.

Rollback ChartFor example, a property valued at $200,000 on January 1, 2023 would be taxed at $200,000 multiplied by the rollback rate of 46.3428% which equals $92,686. The taxable valuation of $92,686 is divided by 1,000 and multiplied by the levy rate (provided by Black Hawk County each spring). 

The residential rollback also applies to the first $150,000 of commercial and industrial properties. Commercial and industrial property values that exceed $150,000 are then taxed at 90%. For example, a commercial property valued at $500,000 would be taxed at ($150,000 x 46.3428%) + ($350,000 x 90%) = $384,514.

This is the largest drop in the residential rollback in over 20 years. The decrease is indicative of strong growth in residential property valuations and limits the City’s property tax revenue. Only when Black Hawk County releases the City’s total taxable value on January 1, 2024 will the impact on the City of Waterloo be more clear. This data will be used to determine the City’s budget for the coming fiscal year.