| The Assessor's primary duty and
responsibility is to assess all real property within the
Assessor's jurisdiction except that which is otherwise provided
by law. This would include residential, commercial, industrial
and agricultural classes of property. Real property is
revalued every two years. The effective date of the assessment
is January first of each year. The Assessor determines a full or
partial value for all new construction and improvements
depending upon their state of completion as of that January
first date.
The Assessor DOES NOT:
- Collect taxes
- Calculate taxes
- Determine tax rate
- Set policy for the
Board of Review
The Assessor is concerned with value, not taxes.
Taxing jurisdictions such as schools, cities and county, adopt
budgets after public hearings. This determines the tax levy,
which is the rate of taxation required to raise the money
budgeted. The taxes you pay are proportional to the
value of your property compared to the total value of property
in your taxing district.
Assessors are appointed to their position by a
Conference Board consisting of the members of the Board of
Supervisors, the Mayors of all the incorporated cities, and a
member of each school district within the jurisdiction.
The Conference Board approves the Assessor's budget and after a
public hearing acts on adoption of the same. The Assessor
is limited, by statute, depending upon the value of the
jurisdiction, to a levy limitation for the budget.
Assessors are required by law 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% attained. The latter
requirement must be met in order for the Assessor to be
reappointed to the position every six years.
Market Value
Residential, commercial and industrial real
property are assessed at 100% market value. Market value of a
property is an estimate of the price that it would sell for on
the open market on the first day of January of the year of
assessment. This is often referred to as the "arms length
transaction" or "willing buyer/willing seller" concept. The
Assessor must determine the fair market value of real property.
To do this, the Assessor generally uses three approaches to
value.Market Approach
- to find properties that are comparable to the subject property
and that have recently sold. Local conditions peculiar to the
subject property are then considered. In order to adjust for
local conditions, the Assessor also uses sales ratio studies to
determine the general level of assessment in a community. This
method is usually considered the most important in determining
the value of residential property.
Cost Approach
- an estimate of how many dollars at current labor and material
prices it would take to replace a property with one similar to
it. In the event the improvement is not new, appropriate amounts
of depreciation and obsolescence are deducted from replacement
value. Value of the land is added to arrive at an estimate of
total property value.
Income Approach -
used if the property produces
income. It 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 developmental trends in the area of the subject property
being appraised since errors or inaccurate information can
seriously affect the final estimate of value.
Agricultural real property is assessed at 100%
of productivity and net earning capacity value. The Assessor
considers the productivity and net earning capacity of the
property. Agricultural income as reflected by production,
prices, expenses, and various local conditions is taken into
account.
Why Values Change
After properties have been appraised,
the values are analyzed to ensure accurate and equitable
assessments. Iowa 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
property assessments.
Notification and Appeal
If you disagree with the Assessor's
estimate of value, please consider these
two questions:
- 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, please contact your assessor's office.
A written protest may be filed with the Board
of Review which is composed of either three members or five
members from various areas of the county who are familiar with
local market conditions and trends. The Board operates
independently of the Assessor's office and has the power to
confirm or to adjust upward or downward any assessment. An
individual may petition to district court if they are not
satisfied with the Board of Review's decision.
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