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How does one figure their property taxes? |
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• Assessed value and taxable value are not synonymous terms.
• Property is assessed as of January First.
• Property 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.
Example:
$100,000 2006 Assessed value (residential class)
x 0.513874 roll back percentage (2006) (last year roll back 0.516676)
51,387 roll back value (taxable)
- 4,122 Homestead Credit $4850@85unded for 2006 $4850@90unded for 2005
47,265 net taxable value
x 0.03238763 levy $32.38763 per thousand (varies with taxing district )
$1,530.00 property tax (rounded to nearest even whole dollar)
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What is Market Value? |
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Residential, commercial and industrial real property is assessed at 100 arket 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
The first approach is 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 generally referred to as the MARKET APPROACH and is usually considered the most important in determining the value of residential property.
Cost Approach
The second approach to value is the COST APPROACH, which is 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
The INCOME APROACH is the third method used if the property produces income. If the property is an income producing property, 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 f 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.
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What qualifies you as the assessor? |
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Assessors are appointed to their position by a Conference Board consisting of the members of the Board of Supervisors, the Mayors of all cities, and a member of each school district within the jurisdiction.
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 ttained. The latter requirement must be met in order for the Assessor to be reappointed to the position every six years.
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.
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Why does my assessed value change? |
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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.
If you disagree with the Assessor's estimate of value, please consider these two questions:
1. What is the actual market value of my property?
2. How does the value compare to similar properties in the neighborhood?
If you have any questions about the assessment of your property, please contact my office.
A written protest may be filed with the Winneshiek County Board of Review which is composed of five individuals 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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