Assessor's General Info
About the Assessor
- Assessors are appointed to their positions by a Conference Board consisting of the members of the Board of Supervisors, the Mayors of all incorporated cities and a member from each school district within the jurisdiction.
- A city with a population of ten thousand or more may elect to have their own assessor.
- Assessors are required, by statute, to pass a state examination and complete a Continuing Education Program consisting of 150 hours of formal classroom instruction with 90 hours tested and a passing grade of 70%.
- The latter requirement must be met in order for the assessor to be reappointed to the position every six years.
- The Deputy Assessor also must pass a state examination as well as successfully complete 90 hours of classroom instruction of which at least 60 hours are tested.
- The Conference Board approves the assessor's budget and after a public hearing adopts the budget.
- The assessor levy is limited by statute and depends upon the value of the jurisdiction.
What is Market Value?
Market value of a property is an estimate of the price that it would sell for on the open market on January First of the year of assessment. This is sometimes referred to as the "arms length transaction" or "willing buyer/willing seller" concept.
How does the Assessor Estimate Market Value?
To estimate the market value of your property, the Assessor generally uses three approaches. The first approach is to find properties that are comparable to yours which have sold recently. Local conditions peculiar to your property are taken into consideration. The assessor also uses sales ratio studies to determine the general level of assessment in a community in order to adjust for local conditions. This method is generally referred to as the MARKET APPROACH and is usually considered the most important in determining the value of residential property.
The second approach is the COST APPROACH and is an estimate of how many dollars at current labor and material prices it would take to replace your building(s) with similar one(s). In the event the building(s) is not new appropriate amounts for depreciation and obsolescence would be deducted from replacement value. Value of the land would then be added to arrive at the total estimate of value.
The INCOME APPROACH is the third method used if your property produces income such as an apartment or office building. In that case your property could be valued according to its ability to produce income under prudent management; in other words, what another investor would give for a property in order to gain its income. The income approach is the most complex of the three approaches because of the research, information and analysis necessary for an accurate estimate of value. This method requires thorough knowledge of local and national financial conditions as well as any market trends in the area of the property being appraised since errors or inaccurate information can seriously affect the final estimate of value.
Why Values Change
State law requires that all real property be reassessed every two years. The current law requires the reassessment to occur in odd numbered years. Changes in market value as indicated by research, sales ratio studies and analysis of local conditions as well as economic trends both in and outside the construction industry are used in determining your assessment.
If you disagree with the assessor's estimate of value please consider the following two questions before proceeding.
What is the actual market value of my property?
How does the value compare to similar properties in the neighborhood?
If you have any questions about the assessment of your property feel free to come in and discuss them with the assessor.
You may file a written protest with the Board of Review, which is composed of three or five members from various areas of the assessing jurisdiction. The Board operates independently of the assessor's office and has the power to confirm any assessment or to adjust it either upward or downward.
If you are not satisfied with the decision of the Board of Review you may appeal to district court within twenty days after adjournment of said Board, or twenty days after May 31st, whichever is latest.
Tax Levies and Assessed Values
There are a number of different taxing districts in a jurisdiction, each with a different levy. Each year the County Auditor determines for each district a levy that will yield enough money to pay for schools, police and fire protection, road maintenance and other services budgeted for that area. The tax levy is applied to each $1,000 of a property's taxable value. The value determined by the assessor is the assessed value and is the value indicated on the assessment roll. The taxable value is the value determined by the auditor after application of state ordered "rollback" percentages for the various classes of property. When comparing the assessment of different properties always compare the value on the assessment roll or the assessor's property record cards and not the value indicated on the tax statement.
Tax Credits & Exemptions
Iowa law provides for a number of exemptions and credits, including Homestead Credit and Military Exemption and provides that it is the property owner's responsibility to apply for these. If the property you were occupying as a homestead is sold, or if you cease to use the property as a homestead, you are required to report this to the assessor in whose jurisdiction the property is located.
Things To Remember
- Assessed value and taxable value are not synonymous terms.
- Property is assessed as of January First.
- Property is reassessed every two years.
- Taxes are levied on a value determined by the auditor by applying a "roll back" percentage to the assessed value and deducting any applicable exemptions or credits. The "roll back" percentages vary each year.
- On values determined as of January First, one does not pay taxes until eighteen months later. The "roll back" is the percentage of actual value to be levied upon and is determined by the Director of Revenue and Finance each year on each class of property where the total value increase STATEWIDE exceeds four percent. The percentage so determined by the Director of Revenue and Finance is certified to and applied by the local county auditor to all property in each affected class.
- Percentages determined by the Director of Revenues and Finance are the same for all assessing jurisdictions in the State.
Increases in assessed value of individual parcels of property as determined by the assessor may exceed four percent. Agricultural property, except agricultural dwellings, is assessed on the basis of productivity and net earning capacity using a five year crop average and capitalized at the rate set by the Legislature. Tentative and final equalization orders are issued by the Director of Revenue and Finance in odd numbered years on or about August 15th, and October 1st respectively. The orders are sent to the various county auditors who apply them to the classes of property affected, if any.
Assessors and members of the Board of Review are appointed to their terms of office. Assessors, in addition to completing the required 150 hours of Continuing Education, must be approved by a majority vote of the Conference Board in order to be reappointed.
If you desire further information, questions concerning PROPERTY VALUES or other information relating thereto should be addressed to the assessor's office in the respective jurisdiction and not the Board of Supervisors or Treasurer. The assessors of Iowa hope that the information contained herein will be of value to the property owner and has clarified some of these questions and issues relating to assessment and the applicable laws.