Property Tax Overview

The Iowa property tax is primarily a tax on real property, land, buildings, structures, and other improvements that are constructed on or in the land, attached to the land, or placed upon a foundation. Additionally, the Department of Revenue assesses some property.

Classes of real property include:

• Residential
• Agricultural
• Commercial
• Industrial
• Utilities/railroad (state assessed)

Primary recipients of property taxes levied include:

• K-12 Schools
• Cities
• Counties
• Hospitals
• Merged Area Schools
• Assessors
• Townships
• Agricultural Extension Districts

Current details on property taxes paid and levied are available from the Iowa Department of Management.

All real property is assessed every odd-numbered year. Centrally assessed properties, including railroads and public utilities, are assessed every year. Residential, commercial, industrial and state assessed properties are to be valued at actual value or market value. Agricultural property is assessed based on a statewide productivity value, which is a use value. A few additional exceptions to the market value requirement for real property assessment include Section 42 housing and newly platted property. 

1. The value of property is established.
   The assessor (or the Iowa Department of Revenue for centrally assessed property) determines the assessed value of each property. The assessed value is to be at actual or market value for most property.
2. Assessed values for each property classification are reported to the county auditor.
3. The Department examines total assessed values.
   Each year assessors are required to report aggregate assessed values by classification, by city by township to the Department. Each odd year, the Department reviews the aggregated valuations in conjunction with a review of all arm’s length transactions to determine the 100% aggregate value by classification. If aggregated values by classification as reported by assessors are not compliant with the established 100% valuation criteria established by law, the Department can and does order aggregated changes by class to be implemented by local auditors. This process is known as equalization.
   
   Additionally, the county auditor applies an “assessment limitation” to the assessed value of residential, agricultural, commercial, industrial, railroad, and utility properties to find the taxable value of those classes of property. Commercial, industrial and railroad property have statutory assessment limitations equal to the residential limitation for the first $150,000[RJ[2] of assessed value for a property unit and 90% limitation for value greater than $150,000 for a property unit. Residential and agricultural assessment limitations are calculated each year to restrict the growth in aggregate taxable value across the state to 3%. The 3% limitation in growth is for the total taxable value within the state for that class of property. It is not a limitation to an individual growth in assessed value.
4. Budgets and tax rates are established.
   Iowa statutes determine which local authorities have the power to levy tax dollars. These authorities determine their own budgetary needs. The budgets are used to provide the required and desired services received by local taxpayers. Approved budgets are submitted to the county auditor, who then determines levy rates associated to each authority based on the aggregate taxable value for each authority. The sum of the levy rates for each authority is considered the consolidated levy rate for each tax district, which is the unique combination of authorities. The consolidated levy rates are expressed as mills or dollars per thousand.
5. Credits are subtracted
   Credits are subtracted from the final tax bill. An example of a credit that reduces the final tax bill is the Homestead Tax Credit. 

1. January 1 - Assessment date
2. April 1 - Assessors complete assessments and notify taxpayers
3. April 2 - 25 - Taxpayers may request informal review of assessment by assessor
4. On or before April 25 - Following informal review, Assessor may enter into a signed written agreement with the property owner or aggrieved taxpayer authorizing the assessor to correct or modify the assessment according to the agreement of the parties
5. April 2 - 30 - Taxpayers may protest assessments to local boards of review.
6. May 1 - May 31 - Local boards of review consider protests. This time may be extended to July 15 by the Iowa Department of Revenue Director.
7. June 15 - Local boards of review submit reports to the Director.
8. July 1 - Assessors submit abstracts of the assessments to the Director.
9. August 15 - The Department issues tentative equalization notices to assessors.
10. September - The Department holds equalization hearings, which are held for public input.
11. October 1 - The Department issues final equalization orders to county auditors.
12. October 2 - 12 - Assessing jurisdictions may apply for alternative methods of implementing equalization orders.
13. By October 8 - The county auditor must publish notice of the final equalization order by this date, and must provide notice by mail to the taxpayers if the equalization order results in an increase in valuation.
14. October 9 - 31 - Taxpayers may protest the final equalization order to local boards of review.
15. October 10 - November 15 - Local boards of review meet to hear equalization protests.
16. November 1 - The Director certifies assessment limitation percentages to county auditors.
17. November 15 - Local boards of review submit a report about the equalization protests to the Department.
18. Dec. 1 - Feb. 28 - The taxing authorities adopt the budgets based on the valuations.
19. March 1 - The county board of supervisors levies the taxes.
20. July 1 - The county treasurer receives authorization to collect taxes.
21. September 30 - First half of taxes are due.
22. March 31 - Second half of taxes are due.