Property Taxes 101 – “From Assessing property values to paying the property tax bill … and beyond.”
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- Panelists: Randy Ripperger, Polk County Assessor Jared Higley, Dallas County Deputy Auditor
Property Taxes 101
Assessment of a property’s value
- Valued as of January 1
- Certain properties are totally or partially exempt
- Real property – every two years (odd-numbered years)
- Responsibility of County Assessors
- Real property – every two years (odd-numbered years)
- Public utilities, railroads, etc.
- Annually by Iowa Department of Revenue
- Taxpayers notified by April 1
- Average Assessment Increases (2019 Polk County)
Appeal of assessment
- Request informal review April 2-25
- File formal protest April 2-30
- Reasons:
- Not equitable with similar properties
- Assessment is more than actual value
- An error in the assessment
- Assessment is fraudulent
- Reviewed by County Assessor
- Local Board of Review considers appeals May 1-31
- Appeal to Property Assessment Appeal Board (“PAAB”)
- Submitted within twenty days of Board of Review adjournment date
- Decision may be appealed in district court.
- Alternativity, appeal directly to district court.
Assessments reviewed and finalized
- Assessor abstract submitted to Iowa Department of Revenue (by 7/1)
- Equalization notices & process
- Processed by either Assessor or Auditor
- Every two years
- Aggregate property values by class must be with 5% of the
- 1000% aggregate value as determined by sales ratio study
- Assessment limitation is determined annually (entered by Auditor)
- Commonly called “Rollbacks”
- In response to inflation
- Issued 10/21/2019 by IA Dept of Revenue
- Residential/Ag Dwellings 55.0743%
- Commercial 90.0000%
- Multi Residential 71.2500%
- Industrial 90.0000%
- Agricultural 81.4832%
- Railroad 90.0000%
- Taxable value is determined:
- Assessed property value x rollback = taxable value
- County Auditor determines total taxable value for each tax authority (tax base)
- County Auditor certifies values to IA Dept of Mgmt by January 1
Tax authorities adopt budgets & establish levies
- December 1 – February 28
- Tax authorities include:
- K-12 and merged area schools
- Counties, cities, and townships
- Assessors, agricultural extension districts
- Others
- In Polk, Dallas & Warren counties
- 28 school districts
- 44 cities
- 3 counties
- 52 others (e.g., DMACC, DART, Broadlawns)
- Budgets include:
- Annual operating expenses
- Multi-year Capital Improvement Projects
- Multi-year strategic plan initiatives
- Reserves
- Budget ÷ total taxable value = levy
Property tax collections are authorized and paid
- County Board of Supervisors levies the taxes
- County treasurer is authorized to collect taxes (7/1)
- Property tax statements distributed (typically late July/early August)
- First half of taxes are due (9/30)
- Second half of taxes due (3/31)
Delinquent payments, foreclosures & tax sales
- Administered by County Treasurer
- Interest on delinquent taxes: 1.5%/month
- Tax sale
- Annually in June
- Unpaid taxes are put up for bid.
- Tax sale certificate issued
- Redemption is possible for 1 year 9 months
- Certificate holder entitled to 2%/month
- If not redeemed, tax deed is issued.