The Iowa Department of Revenue issued an Assessment Limitations Order, or "rollback," on property values in Iowa at the end of last week. The order adjusts the property values used by local governments to compute property taxes for agricultural, residential, commercial, and industrial property.
State law allows no more than a four percent (4 percent) increase in taxable values for these property classes from year to year in order to cushion the impact of inflation.
For this year, the Department of Revenue's Assessment order sets forth the following taxable values:
- The taxable value for residential property is 52.8166 percent of the assessed value. This is an increase from the 2011 level of 50.7518 percent. (Residential assessed value in Iowa is $137.5 billion; the taxable value is $72.6 billion, which is 52.8166 percent of the assessed value.) Residential property includes farm dwellings.
- The taxable value for agricultural property is 59.9334 percent of the assessed value. This is an increase from the 2011 level of 57.5411 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 59.9334 percent of the assessed value.)
- 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.
County auditors will apply the adjustments to each property class to compute the taxable values used for property taxes.
Tax liabilities based on the 2012 taxable values and payable in fiscal year 2013-14 will not be determined until local taxing bodies establish their property tax needs early next year.
Additional information about the rollback can be found at: www.state.ia.us/ tax/locgov/propequalroll. html