The Assessor DOES NOT:
- Collect taxes
- Calculate taxes
- Determine tax rate
- Set policy for the Board of Review
The Assessor is concerned with value, not taxes.
There are three parts to the property tax system: Valuation, Rollback & Taxation
Buyers and sellers of property create value in the Real Estate Market. The assessor’s office studies this market, collects information and data about properties and values all real estate, except agricultural property, based on the market created by the buyers and sellers.
The rollback rate is a statewide rate set annually for each property class by the Iowa Department of Revenue. More than 20 years ago, residential property values were rising quickly. To help cushion the impact of high inflation, the Legislature passed an assessment limitation law called rollback. Increases in assessed values for residential and agricultural property are subject to this assessment limitation formula. If the statewide increase in values of homes and farms exceeds 3 percent due to revaluation, their values are "rolled back" so that the total increase statewide is 3 percent. Rollback is also available for industrial and commercial property when necessary. This does not mean that the assessment on your home will increase by only 3 percent. The rollback is applied on a class of property, not an individual property. This means that the statewide total taxable value can increase by only 3 percent due to revaluation.
Taxing authorities such as schools, city councils, county supervisors and others levy taxes to provide services that taxpayers expect or demand. Some of these services are education, police protection, fire protection, streets, sewers, and health and human services.
The actual taxes are determined by taxing entities such as schools, cities and counties. Each of these entities holds separate annual budget hearings and adopt budgets which include estimated revenue and expenses. The amount of revenue needed each year is used to set the levy rate. All of the individual rates from each entity are then combined into a consolidated levy rate. That consolidated tax levy rate is then applied equally to your property and all other property in that tax district to determine the final tax bill amount.