WHAT IS MARKET VALUE?
Residential, commercial and industrial real property are assessed at 100% market
value. Market value of a property is an estimate of the price that it would sell
for on the open market on the first day of January of the year of assessment.
This is often referred to as the "arms length transaction" or "willing
buyer/willing seller" concept. The Assessor must determine the fair market value
of real property. To do this, the Assessor generally uses three approaches to
value.
Market Approach - The first approach is to find properties that are
comparable to the subject property and that have recently sold. Local conditions
peculiar to the subject property are then considered. In order to adjust for
local conditions, the Assessor also uses sales ratio studies to determine the
general level of assessment in a community. This method is generally referred to
as the MARKET APPROACH and is usually considered the most important in
determining the value of residential property.
Cost Approach - The second approach to value is the COST APPROACH,
which is an estimate of how many dollars at current labor and material prices it
would take to replace a property with one similar to it. In the event the
improvement is not new, appropriate amounts of depreciation and obsolescence are
deducted from replacement value. Value of the land is added to arrive at an
estimate of total property value.
Income Approach - The INCOME APROACH is the third method used if the
property produces income. If the property is an income producing property, it
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.
Agricultural real property is assessed at 100% of productivity and net earning
capacity value. The Assessor considers the productivity and net earning capacity
of the property. Agricultural income as reflected by production, prices,
expenses, and various local conditions is taken into account.
WHY VALUES CHANGE
After properties have been appraised, the values are analyzed to ensure accurate
and equitable assessments. Iowa 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 property
assessments.
IMPORTANT DATES
 January
1 - Effective date of current assessment.
April
16 through May 5 inclusive - Protest of assessment period for filing with the
local Board of Review.
May
1 through adjournment - Board of Review meets each year.
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).
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 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:
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KEY: |
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Annual |
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Permanent |
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Other |
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Family Farm Credit |
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Forest Reservations |
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Fruit Tree Reservations - 8 years |
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Impoundment Structures |
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Native Prairies |
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Open Prairies |
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Forest Cover |
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River and Stream Banks |
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Recreational Lake |
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Pollution Control |
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Disabled Veterans Homestead Credit |
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Wildlife Habitat |
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Wetlands |
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Urban Revitalization |
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Industrial Partial 427 |
Notification and Appeal
If you disagree with the Assessor's estimate of value, please consider these two
questions:
What
is the actual market value of my property?
How
does the value compare to similar properties in the neighborhood?
If you have any questions about the assessment of your property, please contact
your assessor's office.
A written protest may be filed with the Board of Review which is composed of
either three members or five members from various areas of the county who are
familiar with local market conditions and trends. The Board operates
independently of the Assessor's office and has the power to confirm or to adjust
upward or downward any assessment. An individual may petition to district court
if they are not satisfied with the Board of Review's decision. |
