Iowa agricultural land and buildings are assessed according to a productivity formula and not at market value. Commodity yields, prices, and expenses from the 2007 through 2011 crop years are used in the productivity formula to arrive at the assessed value. Productivity numbers are affected by flood, drought, and local demand for commodities.
The average increase in Iowa is 44 percent. These increases per county will range from 24 to 54 percent. Tama County will see an estimated increase of 33 percent.
Agricultural land and buildings are tied together for assessment purposes. The productivity formula is for the total assessed value of both agricultural land and buildings in Tama County. Because the total value of assessed agricultural buildings in the county is being lowered, the total agricultural land value will go up by the same dollar amount. There is not any value lost, but it is shifted to the other component. This shift will result in agricultural land in Tama County increasing by approximately 33 percent.
Iowa assessment law limits the increase of a class to 4 percent statewide. This increase is controlled with what is called a rollback. The rollback represents a percentage of the assessed value that is taxable. The agricultural rollback for 2012 was 59.9 percent. The rollback currently has not been projected for 2013. It is estimated to be 46 percent.
The overall taxable value changes are estimated to be as follows:
Agricultural Land 33.3%
2013 Tama County
2011 Value per acre was $1,561
2013 Value per acre is $2,082
Increase of $521/acre or 33%
Based on five year productivity average.
Five year market average is $5,245/acre.
Average increase throughout state was 44%. Iowa code limits value increase throughout state to 4%, so should be very little change in taxable value in Tama County Ag land.
Farm Buildings 21.6%
Total Agricultural 32.9%
The final assessments and rollbacks will be known in November 2013. The tax rates will not be known until spring of 2014.