By Denise Lana,
Decorah property owners should receive annual budget statements from the state of Iowa in their mailboxes by the end of next week, but the property tax information in the report may be skewed, according to Decorah City Manager Travis Goedken.
While Goedken concedes property taxes in the city will be going up in fiscal year 2026, he doesn’t want property owners to get sticker shock. Rather, he said residents should step back and look at all the numbers on the report. Goedken explained the state’s report assumed a 10 percent increase in assessed property values, but he said the assumption wasn’t accurate when it came to local properties.
“This is not what has happened in Decorah — this notice is a terrible misrepresentation of how property taxes work,” Goedken said. “While taxes are going up, our levy rate is going down.”
Iowa Code requires all property owners receive a statement specifying property tax rates for residential, commercial and industrial properties by March 20. The report lists Decorah’s residential property tax rate for fiscal year 2026 at 11.94 percent of a property’s assessed value, while the commercial and industrial property tax rates is at 13.28 percent. However, Decorah’s residential tax obligation is expected to be 1.68 percent, and its commercial and industrial tax obligation is to be about 0.14 percent.
Goedken went on to say some residents might assume a spike in their mortgage payments is related to a property tax hike, but he said increases in insurance premiums are often the cause.
“Most people have their insurance paid through their escrow,” Goedken said. “Insurance rates in Iowa have increased substantially recently due to a significant spike in weather claims stemming from floods like the one that happened in Spencer and the derecho that hit Marshalltown.”
The city of Decorah’s property tax levy for the upcoming fiscal year is going down by nearly 10 cents compared to last year, which Goedken said will likely make a significant difference to local taxpayers. However, the state’s rollback rate for fiscal year 2026 is set at .04743, an increase of slightly more than 1 percent from last year’s rate. After state formulas are applied to the assessed property values, residential property owners in Decorah can expect to see their tax obligation increase by around 1.68 percent — for a rate of about $12.68 per $100,000. Residential property owners will pay taxes on $47,430 per every $100,000 of the value of their residential property, according to Goedken. For commercial and industrial property owners, their tax obligation will be around $4.68 for a $300,000 of assessed property value. Goedken added that $350,000 is the point at which the taxpayer’s obligation changes from a slight increase to a slight decrease.
Goedken also noted legislation was introduced in Des Moines on March 6 which could eliminate the current method for determining tax obligation, property tax assessment and other financial facets.
“This would be the single biggest change in Iowa property tax law since the rollback was established in the 1970s,” Goedken said. “Our entire way of doing things would go by the wayside — they would throw it out the window. If that happened, there will be a completely different conversation next year come property tax time.”
A public hearing is set for 5 p.m. Monday, April 7 at Decorah City Hall to give residents the opportunity to address city staff as well as the Decorah City Council and discuss the proposed property tax levy. The city council is expected to vote on its proposed budget, which includes the proposed property tax levy, at 5:45 p.m. the same night.
Step-by-step instructions for estimating net taxes for residential properties can be found online at www.iowataxandtags.org/property-tax/calculating-property-taxes. Assessed property values can also be found at beacon.schneidercorp.com.
“This is not what has happened in Decorah — this notice is a terrible misrepresentation of how property taxes work.”– -Decorah City Manager Travis Goedken - regarding the annual budget statements’ assumption of a 10% increase in assessed personal property values which did not occur in Decorah.
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