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Credits & Exemptions

What is a Homestead Credit?

The Homestead Credit is a tax credit funded by the State of Iowa for qualifying homeowners, and is generally based on the first $4,850 of Net Taxable Value. In the case of a Disabled Veteran Tax Credit, the value of the Homestead Credit is increased to the entire amount of the Taxable Value of the property. For more information, please call the Auditor's Office at 563-245-1106.

How is the Homestead Credit calculated?

The Homestead Credit is calculated by dividing the homestead credit value by 1,000 and multiplying by the Consolidated Tax Levy Rate. That amount may then be reduced by the county to the same amount at which the State of Iowa has approved funding. For more information, please call the Auditor's Office at 563-245-1106.

What is a real estate Military Exemption?

Veterans who served in active duty during certain periods of time and who were honorably discharged are eligible to receive a Military Exemption on their property taxes. Pursuant to Iowa law, the Military Exemption value is determined by the dates the veteran served in active duty. Values for most veterans are $1,852, or $3,704 in the case of a husband and wife who both qualify. The value for World War I veterans is $2,778. For more information, please call the Auditor's Office at 563-245-1106.

How is the Military Exemption calculated?

The Military Exemption value is subtracted from the Taxable Value of a property prior to the calculation of taxes. To know how much your tax bill was reduced by the Military Exemption, divide the value by 1,000 and multiply the remainder by the Consolidated Tax Levy Rate. For more information, please call the Auditor's Office at 563-245-1106.

How do I apply or find out if I qualify for the Homestead Credit or Military Exemption?

The assessor has forms that you need to complete, sign, and file for the Homestead Credit and/or Military Exemption. That office can also tell you the qualifications for each. For more information, please call the Auditor's Office at 563-245-1106.

Real Estate

What is a Levy Authority?

A Levy Authority is a governmental entity with statutory authority to levy property taxes. These entities include counties, cities, school districts, townships, community colleges, local assessors, and others. For more information, please call the Auditor's Office at 563-245-1106.

What is a legal description?

A legal description is a description of real estate that is used in legal documents such as abstracts, deeds, mortgages, etc. For more information, please call the Auditor's Office at 563-245-1106.

What is a property class?

Real estate parcels are annually assigned a property class by the assessor or the Iowa Department of Revenue. Property classes include Agricultural, Residential, Commercial, Industrial, Railroad, Utility, and Gas and Electric Utility. For more information, please call the Auditor's Office at 563-245-1106.

What is an administrative real estate description?

An administrative real estate description is a description of real estate used by county offices for real estate assessment and taxation administrative purposes. Typically, it will be similar to a legal description, but may contain abbreviations or other summaries. For more information, please call the Auditor's Office at 563-245-1106.

Tax Increment Financing (TIF)

What is a TIF Area?

A tax increment financing area (TIF Area) is usually created by a city or county for use as an economic development tool. A community college can also create a TIF Area for a new jobs training program. For more information, please call the Auditor's Office at 563-245-1106.

What is the difference between a TIF Area and a TIF Tax District?

TIF Area is defined in the ordinance adopted by the city or county. A TIF Area may need to be broken into multiple TIF Tax Districts because of different Consolidated Tax Levy Rates or due to an amendment to the TIF Area, such as happens in an annexation. For more information, please call the Auditor's Office at 563-245-1106.

How is a TIF Area created?

A city or county must adopt an urban renewal plan and then an ordinance for the division of TIF taxes. The process prescribes public notice and public hearing requirements. For more information, please call the Auditor's Office at 563-245-1106.

What happens to the "base" taxes and the "increment" taxes?

Taxes levied on the base value are distributed by the county treasurer to the Levy Authorities in the same manner as regular (non-TIF) Tax Districts. Taxes levied on the increment value are paid to the TIF Authority. For more information, please call the Auditor's Office at 563-245-1106.

Who is the "TIF Authority"?

The TIF Authority is the governmental body that created the TIF Area. Usually a city, it could also be a county, a community college, or a rural improvement zone. For more information, please call the Auditor's Office at 563-245-1106.

How much of my taxes go to the city (or county) for debt for the TIF Area?

The amount of increment taxes depends on the relative proportion of base value to increment value in the TIF Area, and also on whether or not the TIF Authority requests all of the available TIF increment taxes in a given year. You can see the distribution of your taxes on your tax bill. For more information, please call the Auditor's Office at 563-245-1106.

Do all of the taxes on the increment value go to pay TIF debt?

No. Debt levies for counties, schools, and cities are applied against both base and increment value, as are physical plant and equipment levies for school districts. For more information, please call the Auditor's Office at 563-245-1106.

Are my taxes higher because my property is in a TIF Area?

To answer this question, it is useful to assume a situation in which two real estate parcels are exactly the same in the following respects: each has the same valuation, Property Class, tax credits exemptions, and Consolidated Tax Levy Rate. The only difference between the two is that one is in a TIF Area and the other is not. The result is that both properties will pay exactly the same amount of taxes. The difference in a TIF Area is not how much you pay in taxes, but who receives the taxes. For more information, please call the Auditor's Office at 563-245-1106.

What qualifies to be paid from taxes on the increment value?

TIF tax revenues are used to repay debt incurred for qualifying urban renewal projects within a TIF Area. Projects are for the purposes and activities listed in Code of Iowa Sections 403.6 or 403.12 and should also be included in the city’s urban renewal plan. TIF debt for an urban renewal project can take the form of rebate agreements, internal loans, general obligation bonds, or TIF revenue bonds. For more information, please call the Auditor's Office at 563-245-1106.

Taxes

Do railroads and utility companies pay real estate taxes?

Yes, except that utilities defined as gas & electric utilities pay excise taxes. Railroad and utility values are included in the tax base for the respective Levy Authorities, and both real estate and excise taxes are paid to those Levy Authorities. For more information, please call the Auditor's Office at 563-245-1106.

How can I change the address where my tax bill is mailed?

The procedure for changing the mailing addresses for tax bills will vary from county to county. Contact your county treasurer to determine what you need to do. For more information, please call the Auditor's Office at 563-245-1106.

What is a Tax District?

Generally, a Tax District is a geographically contiguous area defined by boundaries of schools, townships, and cities when overlaid with one another. As such, it is a contiguous area within which the Tax Levy Rates are the same for all parcels. For more information, please call the Auditor's Office at 563-245-1106.

What is an "ag dwelling," and why do I get a separate tax bill for it?

An ag dwelling is a residence that sits on land classified as agricultural, such as a house on a 40-acre tract of farmland. Iowa law requires the value of the house to be taxed as residential property, while the value of the farmland is taxed as agricultural property. For certain tax administrative purposes, many counties create a separate tax parcel for an ag dwelling. In the case of an ag dwelling within city limits, this allows the county to apply the regular (full) city tax rate to the ag dwelling and the city ag (lower) tax rate to the land. For more information, please call the Auditor's Office at 563-245-1106.

What offices at the county are involved in the assessment and taxation of real estate?

The assessor, county auditor, and county treasurer are part of the tax cycle in that, in general, each has various administrative responsibilities for a given assessment year. In addition, the county recorder records various real estate documents, including subdivision plats, mortgages, surveys, and conveyances such as deeds, etc. For more information, please call the Auditor's Office at 563-245-1106.

Where do my taxes go?

Your taxes are apportioned by the county treasurer to Levy Authorities such as the school district, city or township, and county in which your real estate parcel is located. If your property is in a Tax Increment Financing (TIF) Area, most of your taxes are probably apportioned to a TIF Authority, such as a city. You can see the distribution of your taxes on your tax bill. For more information, please call the Auditor's Office at 563-245-1106.

Frequently Asked Questions

Credits & Exemptions

Real Estate

Tax Increment Financing (TIF)

Taxes

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