Property Tax Resources

In odd-numbered years, the Department of Revenue reviews the level of assessment of property within each property class. If the County's level of assessment for any class is at least 5% above or below the statewide level, the Department will order the equalization of those levels. This equalization order is given to keep assessments for each class of property for varying too much across the state.

Final equalization orders are issued by the Department of Revenue to the County Auditor on October 1. If the County receives this order, the assessor must adjust the particular class up or down the percentage specified in the order. The equalization order adjusts the total valuation of a class of property and may not adjust the valuation of single properties.

In the event of an equalization order, the Board of Review convenes from October 15 to November 15 to hear protests of affected owners or taxpayers if their valuation has been changed by it.

Classification

The Clayton County assessor classifies taxable property located in Clayton County. Property is placed in one of four classes: agricultural, residential, commercial, or industrial. Agricultural dwellings are included in the residential class. Property containing three or more separate residences (except condominiums), multiple-housing cooperatives, and certain nonprofit housing are considered commercial property. The class of all real estate is determined as of January 1 of the year of assessment.

Assessment

Except for agricultural property, taxable real estate is assessed at 100% of market value. The selling price of not only the property being assessed, but of other comparable property is used to determine the assessed value. Prices of unusual transactions are typically not used in this determination. In deciding the market value of property leased to low-income people for purposes of the low-income housing credit, the assessor must consider other factors that reduce its market value.

January 1 of each year marks the beginning of the assessment year. The Assessor has until April 15 to complete assessments and notify taxpayers of the assessed value of their property. The property value as figured for the assessment year is for taxes due in the fiscal year beginning on July 1 of the following calendar year. For example, the value of a piece of property as determined in 2012 is used in calculating taxes due in September of 2013. If a new building is added to a property in 2012, it will not be assessed until 2013 and taxes will not be due until September of 2014.

Agricultural property, except for dwellings, is determined by productivity. Ag dwellings are valued the same as all other residential property. The land underneath the dwelling is assessed as ag land.

In odd-numbered years, the Assessor is required to reassess all property. In this same year equalization orders are issued by the Department of Revenue.

Utilities

Land, buildings, machinery and equipment that belongs to gas, electric, railroad and telephone companies are assessed by the Iowa Department of Revenue and are taxed by the local governments. These properties are not eligible for the tax exemptions available to real estate assessed by the County Assessor. These companies typically have property located throughout the state, so it is more efficient for the Department of Revenue to assess it. Assessing the value this way, called central assessment, also helps prevent local disagreements regarding how the valuation has been distributed.

If you are not satisfied with your property assessment, you can file a written protest against the assessment with the Board of Review between April 16 and May 5. Any local government official or taxpayer within the same city or township where the property is located can also file to protest the assessment the same way a property owner or taxpayer can. You can protest assessments on multiple parcels on one form if the reason for the protest is the same for each property.

Acceptable Reasons for Filing a Protest

• The assessment is not equitable when compared to other similar property in the same taxing district
• The property cannot be assessed
• The property is assessed at more than its actual value
• The property is exempt from taxation
• The property is not classified properly
• The property was assessed fraudulently
• There is an error in the assessment

Board of Review

The Board of Review is in session throughout the month of May to consider appeals. The Iowa Director of Revenue can extend the session up to July 15.

The Board of Review's decision can be appealed to the Iowa Property Assessment Appeal Board. This board consists of three members and was created within the Department of Revenue. The decision of the Assessment Appeal Board can be appealed to district court. The appeal to district court must be made within 20 days after the letter of disposition of the appeal has been postmarked to you. The district court will only review of the Appeal Board's decision to look for errors at law. If you so choose, you can skip this process and appeal directly to the district court.

Appealing to District Court

When appealing directly to the district court, it must be on the same grounds that the original protest to the Board of Review was made on. This appeal can be made no more than 20 days after the Board has adjourned or by May 31, whichever is later. The County Assessor can also appeal the Board's decision to the district court.

Tax Levy Rates

Property tax levies are assessed to all owners of property in the county in order to fund the services the county provides to its residents. The total levy rate varies from one taxing district to the next; it is a combination of county, city or township, school district and special levies.

All local levying authorities certify their taxes to the county auditor to be levied and collected by the county. It is the duty of the county treasurer to collect and disperse property taxes to the appropriate authority.

Tax levy rates are expressed in dollars and cents per $1,000 of assessed valuation. The amount of tax due for the year is calculated using the property's assessed value as of eighteen months before the beginning of the current fiscal year. The county's fiscal year begins on July 1 so in 2011, property taxes were based on the assessed value of the property on January 1, 2010. The property value is adjusted by exemptions and any rollback that may apply. This value is multiplied by the total levy rate to come up with the total tax due for the current fiscal year.

Cities

General & Supplemental Levies

Cities can impose a general fund levy of no more than $8.10 per $1,000 of assessed value. They are also able to assess supplemental levies for specific purposes as specified by Iowa Code section 384.12. Taxes collected from these supplemental levies are also added to the city's general fund. If approved by a simple majority in a special election, a city may exceed a levy's maximum amount as stated in the Code of Iowa.

Other Funds

Cities are also allowed to levy taxes for other funds, including:

• Capital Improvements
• Debt Service
• Emergency
• Trust and Agency Funds

Emergency Fund

The emergency fund cannot exceed $0.27 per $1,000 of assessed value.

Community College

A tax levy of 20¼ cents per $1,000 of assessed value is used by a community college to pay for its operation. The board of directors may also levy an additional 20¼ cents per $1,000 of assessed value for a maximum of ten years for a specific purpose if approved by voters within the school's district during the school election. This levy can be used for the following purposes:

• Acquisition of Libraries
• Building Construction
• Expansion
• Improvements
• Maintenance
• Payment of Utilities
• Purchase of Buildings
• Purchase of Equipment for Buildings
• Purchasing Grounds
• Remodelings

Taxes collected from this levy can only be used for the purpose for which it was approved by the voters.

Equipment Replacement Levy

A Community College Board of Directors can also levy up to an additional 3 cents per $1,000 of assessed value for equipment replacement. This rate may exceed the 3-cent limit if it is used for program sharing between community colleges or for the purchase of instructional equipment. This additional amount cannot cause the entire levy to exceed 9 cents, however.

County Levies

Rural Services & General Services Levy

There are two primary levies an Iowa county can impose, the rural services levy and the general services levy. The rural services levy is set on property that is not located in a city. The money collected from this levy is used to pay for services that are primarily proved to residents of these rural areas. The rural services levy cannot exceed $3.95 per $1,000 of assessed value. The general services levy is assessed to all property in the county and may not exceed $3.50 per $1,000 of assessed value. Money deposited from this levy is used to pay for services provided to all citizens of the county.

Additional Property Taxes

A county's board of supervisors can certify additions to each of these levies in certain circumstances which create the need for additional property taxes above what can be collected under them. The Code of Iowa specifies what these circumstances are. Special notice of any additions to either primary levy must be given at the same time as the notice of the public hearing on the county's budget.

Supplemental Levy

Counties are also able to levy a supplemental levy strictly for the purposes outlined in Iowa Code section 331.424. There is no maximum value for this levy. In 1995, Senate File 69 removed the ability for counties to levy for the payment of mental health and developmental disability service expenses by using this supplemental levy. A separate fund for each of these expenditures was instead established with a limit that is determined by formula for each county.

Property Assessment Levies

Iowa Code section 441.16.23 establishes an assessment expense fund which is used to pay expenses accrued in the assessment of property. Property taxes are levied for this fund separately from other property taxes. The county conference board certifies this levy to the County Auditor. The value of this levy is determined as follows:

• If the total valuation of a jurisdiction does not exceed $92,600,000, the maximum levy is 40½ cents per $1,000 of assessed value.
• If the total valuation is between $92,600,000 and $111,120,000, the levy cannot exceed 33¼ cents per $1,000 of assessed value.
• If the valuation is greater than $111,120,000, the levy can be no greater than 27 cents per $1,000 of assessed value.

Most real property is assessed either by a county or city assessor. Since Clayton County does not have a city with a population greater than 10,000, there are no city assessors here; all property in Clayton County is assessed by the County Assessor.

Schools

K-12 school districts are funded by a combination of state aid and property taxes. The school district foundation levy is $5.40 per $1,000 of assessed value. This levy and state aid are not able to fully fund a school district's spending, so districts assess an additional levy. Schools can also levy income surtaxes and property taxes beyond both the $5.40 levy and the additional levy which can be used for specific needs. Some of these specific levies require approval by the districts voters.

Townships

Township trustees can levy property taxes in order to fund:

• For the condemnation or purchase of lands to be used for cemeteries, a community center or playgrounds
• To build or acquire a public hall. The maximum for this levy is 20¼ cents per $1,000 of assessed value.
• To improve and the maintain cemeteries located in the township and in adjoining townships.
• To improve and maintain public parks.
• To improve to and maintain cemeteries not owned by the township if it is available for general public use. This levy can't exceed 6¾ cents per $1,000 of assessed value.
• To provide emergency services to township residents.

Emergency Services Levy

The limits of the emergency services levy vary.

• All other townships: 60 3/4 cents per $1,000 of assessed value.
• Townships with a population of 300,000 or more: 87 3/4cents per $1,000 of assessed value.
• Townships with a service agreement with a city: 74 1/4 cents per $1,000 of assessed value.

Reserve Fund

A township can have a reserve fund which can be used to buy or replace supplies and equipment as need to provide emergency services. The trustees can credit up to 30 cents per $1,000 of the emergency levy to this reserve fund.

Property taxes are collected and distributed by the Treasurer's Office to the other levying bodies in the county. That office is also required to mail a property tax statement to every taxpayer. There are two installments to pay per year. The treasurer may also permit all taxpayers to make partial payments.

How to Pay & Delinquent Info

A limitation on growth in assessed value of 4% (8% for utilities) has been in effect since the 1980 assessment year. As a result of this, the value of your property subject to taxation may be a percentage of the original assessed value. In November, the Director of Revenue certifies limitation percentages to the County Auditor. This rollback percentage is multiplied by the value originally assessed to come up with the taxable value of the property.

Increases in assessments of residential and agricultural property are tied to each other. What this means is that if residential property valuation increases by 4% and the increase for agricultural property was only 3%, the residential increase would be reduced to 3%.