Assessor

What are the Assessor's Duties

The Assessor is charged with several administrative and statutory duties; however, the primary duty and responsibility is to cause to be assessed all real property within his/her jurisdiction except that which is otherwise provided by law.

This would include residential, multi-residential, commercial, industrial and agricultural classes of property. Real property is revalued every two years.

The effective date of the assessment is January 1st of the current year.

The assessor determines a full or partial value of new construction, and/or improvements depending upon the state of completion as of January 1st.

General Information About the Assessor

Assessors are appointed to their position by a Conference Board consisting of the members of the Board of Supervisors, the Mayors of all incorporated cities and a member from each school district within the jurisdiction.

Assessors are required, by statute, to pass a state examination and complete

a Continuing Education Program consisting of 150 hours of formal classroom instruction with 90 hours tested and a passing grade of 70% attained.

The latter requirement must be met in order for the assessor to be reappointed to the position every six years. The Deputy Assessor also must pass a state examination as well as successfully complete 90 hours of classroom instruction of which at least 60 hours are tested.

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.

The Conference Board approves the assessor's budget and after a public hearing acts on adoption of same. The assessor is limited, by statute, depending upon the value of the jurisdiction, to a levy limitation for his/her budget.

General Misconception About the Assessor's Work

The Assessor does not:

collect taxes
calculate taxes
determine tax rate
set policy for the Board of Review

The Assessor is concerned with value, not taxes. Taxing jurisdictions such as schools, cities, and townships, adopt budgets after public hearings.

This determines the tax levy, which is the rate of taxation required to raise the money budgeted. The taxes you pay are proportionate to the value of your property compared to the total value of the taxing district in which your property is located.

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 1st of the year of assessment. This is often referred to as the “arm’s length transaction” or “willing buyer/willing seller” concept.

To be considered market value, the following conditions would apply:

- Buyer and seller are both motivated

- Both parties are well informed and are acting in their own best interest

- A reasonable exposure time in the market is allowed

- The price should represent the normal consideration for the property sold and be unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

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 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 or 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 property being appraised since errors or inaccurate information can seriously affect the final estimate of value.

Why Values Change

After properties have been appraised, the values are analyzed to ensure accurate and equitable assessment. Iowa 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.

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 fund the budgets that pay for schools, police and fire protection, road maintenance and other services. The tax levy is applied to each $1,000 of a property’s 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, as well as deductions for any applicable exemptions or credits, resulting in the value indicated on the tax statement. When comparing the value of your property with other properties always compare with the value on the assessment roll or the Assessor's property record cards and not the value indicated on the tax statement.

 Assessed value and taxable value are not synonymous terms.

 Property is assessed as of January 1st.

 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 1st, one does not start to pay taxes until eighteen months later. The “roll back” is the percentage of actual value that is determined by the Director of Revenue each year on the several classes of property where the total value increase STATEWIDE, exceeds three percent for each class of property. The percentage so determined by the Director of Revenue is certified to and applied by the local county auditor to all property in each class affected throughout the State. Percentages determined by the Director of Revenue are the same for all the assessing jurisdictions within the entire state and can change each year.

Increases in assessed value of individual parcels of property as determined by the assessor, may exceed three 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.

Tentative and final equalization orders are issued by the Director of Revenue 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. 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. Questions relating to taxes should be addressed to the County Treasurer. If you need further information, please contact the Assessor’s Office.