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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
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 APPROACH is the third method used. 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 of value. Agricultural property is assessed at 100% of productivity and net earning
capacity. Iowa law requires using a five year average of income and expense data
from Iowa State University, the Iowa Crop and Livestock Reporting Service, the
Department of Revenue, or other reliable sources. In order to determine the
value of individual parcels, the assessor will consider the results of a modern
soil survey. Agricultural values are calculated on a county by county basis.
Why Values Change, Notification and Appeal
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.
The assessor does not create value. People create value by their transactions in
the market place. The assessor has the legal responsibility to study those
transactions and appraise property accordingly.
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
the assessor’s office.
A written protest may be filed with the Page County Board of Review. 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 the Iowa
Property Assessment Appeal Board or the district court if they are not satisfied
with the Board of Review’s decision.
Tax Levies and Assessed Values
There are a number of different taxing districts in a jurisdiction, each with a
different levy. 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 $1,000 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 statement.
When comparing the value of your property with other properties always compare
with the value on the assessment roll or the assessor's property record cards
and not the value indicated on the tax statement.
General Information About Property Taxation
On values determined as of January First, 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 property where the total
value increase 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. Percentages 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.
Tentative and final equalization orders are issued by the Director of Revenue in
odd numbered years on or about August 15th, and October 1st respectively. The
orders are sent to the various county auditors who apply them to the classes of
property affected, if any.
*If you desire further information, questions concerning
PROPERTY VALUES or other
information relating to values should be addressed to the Assessor's office in
the respective jurisdiction and not the Board of Supervisors or Treasurer. |
