Dubuque prepares taxpayers for upcoming property tax statement mailer

In a recent special council session held on March 3, 2025, the City of Dubuque addressed significant changes regarding property tax notifications that will soon be mailed to residents and property owners. The upcoming taxpayer statements, mandated by state legislation, will reveal a notable discrepancy between the reported increases in property taxes and the actual proposed rates.

Dubuque property owners can expect to see a taxpayer statement indicating a more than 14% increase in the city portion of residential property taxes for the upcoming year. However, the proposed increase is actually set at 3.9%. Similarly, commercial property owners will receive notifications showing a 15.5% increase, while the proposed increase is only 1.9%. This discrepancy arises from the calculations used by the Iowa Department of Management, which assumes a 10% increase in property valuations, despite the fact that Dubuque properties were not assessed for revaluations last year.

The council plans to hold a public hearing on March 25, 2025, to discuss a maximum proposed property tax rate for the fiscal year 2026, which begins on July 1, 2025. The proposed rate is set at $10.0637 per thousand dollars of assessed value, reflecting a 3.9% increase for residential properties, a 1.9% increase for commercial properties, and a 1.73% increase for industrial properties.

City officials emphasized the importance of transparency and communication with residents regarding these changes. The mailing of taxpayer statements is a requirement under state law, and the city encourages property owners to stay informed about the budget adoption process throughout March and April. This proactive approach aims to clarify the implications of the new tax rates and ensure that residents understand the factors influencing their property tax bills.

During the meeting, council members discussed the flexibility of the proposed tax rate, noting that it is not the maximum allowed by the state. This provides the city with some leeway to adjust rates if necessary, particularly in response to unforeseen circumstances such as natural disasters.

As the city prepares for the upcoming public hearing, residents are urged to engage with the budget process and seek information on property tax rates and city fees. The council's discussions highlight the ongoing efforts to balance fiscal responsibility with the needs of the community, ensuring that residents are well-informed as they navigate these changes.