Last week I erroneously put in the newspaper the following: "Auditor Laura Kopsa told supervisors the property tax statements had been sent and there would be changes from the last statement. Supervisor Larry Vest said that property valuation is what determines the property tax. Valuations have increased."
This is not correct.
Here is how property tax is determined:
Market value of a property is an estimate of the price that it would sell for on the open market on Jan. 1 of the year of assessment.
To estimate the market value of your property, the Assessor generally uses three approaches.
The first approach "Market 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 is usually considered the most important part 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 property with one similar to it. In the event the improvement is not new appropriate amounts for depreciation and obsolescence would be deducted from th replacement value.
The third approach (Income Approach) method is 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.
Statae 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.
There are a number of different taxing districts in a jurisdiction, each with a different levy, (school, city, county miscellaneous, Area CC, County MH/D)
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 in the area. The tax levy is applied to each $1000 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 and is the value indicated on the tax stataement. When comparing the value of your property with other properties, always compare with the value on the assessment roll or the assessors property record cards and not the value indicated on the tax statement.
Iowa law provides for a number of exemptions and credits, including Homestead Credit and Military Exemption. It is the property owner's responsibility to apply for these as provided by law.
Things to remember: Assessed value and taxable values are not synonymous terms. Property is assessed as of January 1st. Property is assessed 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 1st, one does not start to pay taxes until eighteen months later. The roll back is the percentage of actual value that is determined by the Director of Revenue each year on the several classes of prroperty where the total value increse STATEWIDE, exceeds four percent for each class of property. The percentage so determined by the Director of Revenue is certified to and applied by the local county auditor to all property in each class affected throughout the State. Percentagaes determined by the Director of Revenue are the same for all the assessing jurisdictions in the State.
Increases in assessed value of individual parcels of property as determined by the assessor, may exceed four percent within a jurisdiction. Agricultural property, except agricultural dwellings, are assessed on the basis of productivity and net earning capacity using a five year crop averagae and capitalized at a rate set by the LEGISLATURE., The rate is currently seven percent. Tentative and final equalization orders are issued by the Director of Revenue in odd numbered years on or about August 15 th and October 1st, resectively. The ordes are sent to the various county auditors who apply them to the classes of property affected if any.
If you need further information questions referring to property values can be gotten from theCounty Assessors office. Tax questions should be referred to the County Treasurer.
Hope this explains the county tax situations.
In other business a permit was granted to J.F. Edwards Construction Company for work to be done in Spring Creek Township.
Marty Wymore was present to ask for a sum ogf $12,636. The Region 6 Housing Trust Fund can annually apply for approximatley $269,863 of Iowa Finance Authority State Housing Trust Funds if the trust fund secures $67,466. of local contributions. This would be from Marshall, Poweshiek,Hardin andTama Counties. This is done on a percapita basis. Tama Counties share is the $12,636.
The fund can be used for qualivied rental and owner occupied housing improvement activities for income qualified people across Tama County, Tama County's shaare of this fund would be $50,543.
The County Engineers report shows the entire road crew working on shouldering some of the paved roads. So far work has been done on Highways E64, E66 and V18 near Chelsea.
Brehm says they will be blading gravel roads this week trying to take advantage of the recent rain.
Brehm says they did not receive any bids for the replacement shed in Garwin. This means the county road department will act as the general contractor fo build a new shed theirselves. .
Claims for the past week came to $148,459.26.