State orders 2 percent increase in property values
A lack of new construction in Iowa has slowed the state’s revenue growth rate resulting in the Iowa Department of Revenue adjusting property tax rollback amounts.
According to a news release from the department of revenue, these property taxes will be levied in 2013 and payable in fiscal year July 1, 2013 to June 30, 2014.
• The taxable value for residential property is 52.8 percent of the assessed value. This is a 2.06 percent increase from the 2011 level of 50.75 percent.
Residential assessed value in Iowa is $137.5 billion; the taxable value is $72.6 billion, which is 52.81 percent of the assessed value.
Residential property includes farm dwellings.
• The taxable value for agricultural property is 59.93 percent of the assessed value. This is a 2.39 percent increase from the 2011 level of 57.54 percent.
Agricultural property is assessed at its productivity value.
The 2012 assessed value is $47.7 billion; the taxable value is $28.6 billion, which is 59.93 percent of the assessed value.
“What this means is if a tax levy stays the same, property taxes will still go up,” said Sheri Blough Neff, Jefferson County assessor. “This is statewide, it is directed by the state department of revenue.”
It applies to all tax collecting entities, such as county, city and school district taxes.
“To not increase property taxes, the tax collecting entity would need to lower its levy,” she said.
Those taxing bodies will need to know their budgets for fiscal year 2013 to know what levy rate to set. Jefferson County budget will be certified by March 15.
• No adjustments were ordered for the commercial, industrial, railroad and utility classes, because their assessed values did not increase enough to qualify for reductions.
Utility property is limited to an 8 percent annual growth. Railroad property is adjusted by the lowest percentage applied to commercial, industrial, and utility property.
The Assessments Limitations Order, issued Oct. 26, applies to the taxable value of property for the fiscal year tax period beginning July 1 to June 30, 2013.
State law allows no more than a 4 percent increase in taxable values for agricultural, residential, commercial and industrial properties from year to year.