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1. What is classification?

Real Estate parcels are annually assigned a property classification by the assessor. This classification is to be consistent with the primary use of the property. There are four classifications of property in Iowa. These classes are agricultural, residential, commercial, and industrial. Classification may not necessarily be the same as the zoning of the property.

2. When are assessment notices mailed?

Assessment notices are mailed on or before April 1st whenever there is a change in assessment to a property.

3. How is my property value determined?

Depending on the classification of the property, the assessment is to represent the market value of the property unless otherwise provided by the Iowa Code. Residential, agricultural dwellings, commercial, and industrial classed properties are to be assessed at market value. 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. Agricultural land and buildings are valued on productivity and net earning capacity.

4. What if I disagree with the assessed value of my property?

Property owners who would like to challenge their assessment may file a written appeal with the local Board of Review between April 2nd and April 30th. In odd numbered years when an equalization order is issued by the Department of Revenue, property owners may file a written appeal between October 9th and October 31st. Petition forms to the Board of Review are available at the Assessor’s Office.

5. My assessment has not changed, so why have my property taxes increased?

Each year, assessed values are subject to a rollback factor determined by the Director of Revenue creating a taxable value. Property tax is calculated by applying a levy rate to the taxable value. Levy rates and rollbacks change from year to year therefore adjusting the amount of property tax.

6. What is taxable value?

Taxable value is the value determined by the county auditor after the application of a rollback factor to the assessed value. Taxable value is calculated by multiplying the rollback rate for the correct property class by the equalized 100% value.

7. What is a rollback?

The rollback rate is a statewide rate set annually for each property class by the Iowa Department of Revenue. More than 20 years ago, residential property values were rising quickly. To help cushion the impact of the high inflation, the Legislature passed an assessment limitation law called “Rollback.” Increases in assessed values for residential and agricultural property are subject to this assessment limitation formula. If the statewide increases in values of homes and farms exceeds 4% due to revaluation, their values are “rolled back” so that the total increase statewide is 4%.

Rollback is also available for commercial and industrial property when necessary. This does not mean that the assessment on your home will increase by only 4%. The rollback is applied on a class of property, not an individual property. This means that the statewide total taxable value can increase only 4% due to revaluation.

8. What is a Levy Rate?

There are a number of different taxing districts in a jurisdiction, each with a different levy rate. Each year the county auditor determines for that district, a levy rate that will yield enough money to fund the different entities in that district. The entities include local schools, counties, cities, townships, community colleges, local assessors, and others. Since more than one taxing authority is calculating a tax rate for the property, all the rates are added together, resulting in a single tax levy called a consolidated levy. This consolidated levy is always the result of two or more tax rates established by different government entities.