Property owners across Iowa received mailed statements earlier this spring showing proposed property taxes and levy rates for cities, counties and school districts.
For some taxpayers, the notices raised a confusing question: How can property taxes still increase even when local governments lower their levy rates?
Franklin County Assessor Carissa Sisson tells RadioOnTheGo News the answer often comes down to rising property valuations, which can outweigh reductions in tax rates set by local governments.
“Property assessments may be adjusted annually for several reasons, including physical changes to the property, such as new construction, additions, remodeling, or demolitions, a reclassification or change in the property’s use, or corrections to property records to ensure accurate details, including size, condition, and features.”
Sisson adds that assessed property values and tax levies work together to determine a property owner’s final tax bill.
“There are three main components to your property tax bill,” Sisson says. “One is the assessed value. This is the value determined by the assessor and serves as the foundation of your tax calculation. The second is the rollback or assessment limitation. This is set by the state of Iowa. It adjusts taxable values to limit the statewide aggregate growth for each property class to 3% from the prior year. And the third component is the levy rate. This is determined by the budgets of your local taxing authorities, primarily cities, schools, and the county.”
Sisson says there are several tax credits and exemptions available that may reduce an individual’s property tax liability, including the homestead credit, military exemption and forest reservation.
Residents with questions about their property valuation or property record can contact their county assessor’s office.
Full interview below
