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Find out what market value is, how the Clay County Assessor estimates market
value, why values change; included here are dates to remember regarding
assessments.
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Assessor - Market Value, Tax Levies & Assessed Values
What is Market Value?
Market value of a property is an estimate of the price that it would sell for on
the open market on January First of the year of assessment. This is sometimes
referred to as the "arms length transaction" or "willing buyer/willing seller"
concept.
How does the Assessor Estimate Market Value?
To estimate the market value of your property, the Assessor generally uses three
approaches. The first approach is to find properties that are comparable to
yours which have sold recently. Local conditions peculiar to your property are
taken into consideration. The assessor also uses sales ratio studies to
determine the general level of assessment in a community, in order to adjust for
local conditions. This method is generally referred to as the MARKET APPROACH
and usually considered the most important in determining the value of
residential property.
The second approach is the COST APPROACH and is an estimate of how many dollars
at current labor and material prices it would take to replace your property with
one similar to it. In the event improvement is not new appropriate amounts for
depreciation and obsolescence would be deducted from replacement value. Value of
the land then would be added to arrive to the total estimate of value.
The INCOME APPROACH is the third method used if your property produces income
such as an apartment of office building. In that case, your property 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
estimate of value. This method requires thorough knowledge of local and national
financial conditions, as well as any developmental trends in the area of the
subject properly being appraised since errors or inaccurate information can
seriously affect the final estimate of value.
Why Values Change
State 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 your assessment.
If you disagree with the assessor's estimate of value, please consider these two
questions before proceeding, as outlined below:
1. What is the actual market value of my property?
2. How does the value compare to the similar properties in the neighborhood?
If you have any questions about the assessment of your property, feel free to
come in and discuss it with the assessor.
You may file a written protest with the Board of Review, which is composed of
five members from various areas of the assessing jurisdiction. The Board
operates independently of the assessor's office, and has the power to confirm or
to adjust either upward or downward any assessment.
If you are not satisfied with the decision of the Board of Review you may file
an appeal to the "Property Assessment Appeal Board" or district court within
twenty days after adjournment of said Board, or twenty days after May 31st
whichever is latest.
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 that district a levy
that will yield enough money to pay for schools, police and fire protection,
road maintenance and other services budgeted for in that area. The tax levy is
applied to each $1,000 of a properties 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,
with other properties always compare with the value on the assessment roll of
the assessor's property record cards and not the value indicated on the tax
statement.
DATES TO REMEMBER
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January 1 - Effective date of current assessment |
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April 16 through May 5 inclusive - Protest of assessment period for
filing with the local Board of Review |
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May 1 through adjournment - Board of Review meets each year |
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October 16 through October 25 inclusive - Protest period for filing
with Board of Review on those properties affected by changes in value as
a result of the Director of Revenue and Finance Equalization Orders (odd
numbered years) |
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January 1 through December 31 - Period for filing for Homestead
Credit and Military Exemption. One time filing is provided, by statute,
unless the property owner is (1) filing for a Military or Homestead
Credit the first time; (2) has purchased a new or used home and is
occupying the property as a homestead as of July 1st; or (3) owner was
using as a homestead but did not previously file. |
If the home qualifies and the property owner files on or before July 1, the
exemption will go into effect for the current assessment year. If the property
owner files after July 1, the exemption will go into effect the year following
the sign up.
Filing is required on the following, if provisions have been made for exemptions
as required:
KEY:
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Annual |
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Permanent |
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Other |
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Recreational Lake |
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Impoundment Structures |
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Forest Cover |
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Native Prairies |
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Wetlands |
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Open Prairies |
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Disabled Veterans Homestead Credit |
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River and Stream Banks |
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Family Farm Credit |
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Forest Reservations |
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Pollution Control |
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Fruit Tree Reservations - 8 years |
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Wildlife Habitat |
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Urban Revitalization |
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Industrial Partial 427B |
Things To Remember
Assessed value and taxable value and not synonymous terms.
Property
is assessed as of January First.
Property
is reassessed every two years.
Taxes are levied on a value determined by the auditor by applying a "roll back"
percentage to the assessed value and deducting any applicable exemptions or
credits. The "roll back" percentages vary each year.
On values determined as of January First, one does not stand to pay taxes until
eighteen months later. The "roll back" is the percentage of actual value that is
determined by the Director of Revenue and Finance 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 and Finance are certified to and applied by the local county auditor
to all property in each class effected throughout the State. Percentages
determined by the Director of Revenues and Finance 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. Agricultural
property, except agricultural dwellings, are assessed on the basis of
productivity and net earning capacity using a five year crop average and
capitalized at the rate set by the Legislature. The rate is currently seven
percent. Tentative and final equalization orders are issued by the Director of
Revenue and Finance 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.
Assessors and members of the Board of Review are appointed to their terms of
office. Assessors, in addition to completing the required 150 hours of
Continuing Education, must be approved by a majority vote of the Conference
Board in order to be reappointed.
If you desire further information, questions concerning PROPERTY VALUES or other
information relating thereto should be addressed to the assessor's office in the
respective jurisdiction and not the Board of Supervisors or Treasurer. The
assessors of Iowa hope that the information contained herein will be of value to
the property owner and has clarified some of these problems and issues relating
to assessment and the applicable laws.
*This information was prepared by the Public Relations Committee of the Iowa
State Association of Assessors. |
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