Town Hall – May 20, 2020

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
  • Public utilities, railroads, etc.
    • Annually by Iowa Department of Revenue
  • Taxpayers notified by April 1
  • Average Assessment Increases (2019 Polk County)
    • Residential 10%
    • Commercial 6.8%
    • Multi-residential 20%
    • Industrial 6.8%
    • Agricultural -23.4%

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.