Resolutions-2018-005

IOWA PROPERTY VALUATIONS; DEBT LIMITATIONS Actual Value The Code of Iowa uses the terms “actual value,” “assessed value,” “market value” and “actual assessed value” interchangeably. The actual value of all taxable property of a local jurisdiction, except utility property, is determined by the local county or city assessor, who must be certified by the State Department of Revenue. Utility property is assessed by the State Department of Revenue. The actual value of all property, with the exception of agricultural property, is determined by establishing the fair and reasonable market value of the property. The actual value of agricultural property is determined by its productivity and net earning capacity pursuant to the Code of Iowa, Section 441.21 (1)(e). The State Department of Revenue and Finance periodically adjusts inequities among the 99 county and 10 city assessing jurisdictions by issuing equalization orders pursuant to the Code of Iowa, Sections 441.47 to 441.49. The actual value of a jurisdiction is the value utilized for computing debt limitations of counties, municipalities, school districts, and other political subdivisions. Taxable Value The taxable value of counties, municipalities, school districts, or other political subdivisions is determined by adjusting or “rolling back” the assessed value of residential property, agricultural property, commercial property, industrial property, and other classes of property by applying percentages certified to the county auditors of each county by the Director of Revenue no later than November 1 of each fiscal year pursuant to the Code of Iowa, Section 441.21(10). These adjustments colloquially referred to as “rollbacks” are meant to provide an appropriate balance of market value fluctuation that might disproportionately impact the property tax burden placed on classes of property affected by those fluctuations. Following are classes of property that were adjusted by the corresponding percentages for 2017 assessed valuations collected in 2018/2019: <table> <tr> <th>Property Class</th> <th>Rollback</th> </tr> <tr> <td>Agricultural (excluding agricultural dwellings)</td> <td>54.4480%</td> </tr> <tr> <td>Residential (rural and urban including agricultural dwellings)</td> <td>55.6209</td> </tr> <tr> <td>Multi-Residential</td> <td>78.7500</td> </tr> <tr> <td>Commercial (excluding machinery and equipment)</td> <td>90.0000</td> </tr> <tr> <td>Industrial (excluding machinery and equipment)</td> <td>90.0000</td> </tr> <tr> <td>Railroad</td> <td>90.0000</td> </tr> <tr> <td>Utility</td> <td>N/A</td> </tr> </table> Tax Levies and Collections Property is assessed on a calendar year basis and valued as of January 1 of each year. Property owners are notified by the following April 15 if there has been any increase or decrease in valuation of the property. Assessments as of January 1, 2017 are used to determine tax levies and tax rates for collection in the fiscal year beginning July 1, 2018. Taxes are collected on a fiscal year running July 1 through June 30. A county collects all tax levies within its jurisdiction and remits, by the 10th of each month, the amount collected through the last day of the preceding month to underlying units of government. Property tax payments are made at the office of each county treasurer in full or one-half by September 30 and March 31, pursuant to the Code of Iowa, Sections 445.36 and 445.37. Where the first half of any property tax has not been paid by October 1, such installment becomes delinquent. If the second installment is not paid, it becomes delinquent on April 1. Delinquent taxes are subject to a penalty rate of 1.5% per month. If taxes are not paid when due, the property may be offered at the regular tax sale on the third Monday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property, and funds so received are applied to the payment of taxes. A property owner may redeem from the regular tax sale, but failing redemption within two years the tax sale