Iowa Department of Revenue Issues Property Assessment Limitations

Iowa Department of Revenue Issues Property Assessment Limitations

County auditors will apply the adjustments in value to each property class to compute the taxable values used for property taxes.

The Iowa Department of Revenue last week issued an assessment limitations order on property values in Iowa. These adjustments in value are necessary to comply with a state law that allows no more than a 4% increase in taxable values from 2009 to 2010 for agricultural, residential, commercial and industrial property. Utility property is limited to an 8% annual growth. Railroad property is adjusted by the lowest percentage applied to commercial, industrial and utility property. 

County auditors will apply the adjustments in value to each property class to compute the taxable values used for property taxes. Tax liabilities based on the 2010 taxable values and payable in fiscal year 2011-12 will not be determined until local taxing bodies establish their property tax needs early next year.

Farmland & other ag property is assessed at productivity value

Agricultural property is assessed at its productivity value. The 2010 assessed value is $38.1 billion; the taxable value is $26.3 billion, which is 69.0152% of the assessed value. All other property is assessed at market value. Residential assessed value is $134.9 billion; the taxable value is $65.5 billion, which is 48.5299% of the assessed value. Residential property includes farm dwellings.

No adjustments are ordered for the commercial, industrial, railroad and utility classes because, their assessed values did not increase enough to qualify for reductions.

Assessment limitations were first applied in 1978 with 6% growth allowed for the taxable values of agricultural and residential property. For 1979, the allowed growth was 6% for agricultural, residential, commercial, and industrial properties, and 10% for utility property. For 1980 and subsequent years, the allowed growth was 8% for utility properties and 4% for the other classes of property.

Past years' rollback percentages are online in Excel at www.iowa.gov/tax/locgov/rollbackchart.xls.  Additional information about assessment limitations is at www.state.ia.us/tax/locgov/propequalroll.html.

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