The 2009 agricultural land and building assessments for property tax purposes will increase an average of 48 percent in Iowa due to increasing crop yields and prices. However, an assessment law limits the annual change of the statewide taxable value of agricultural land and buildings to 4 percent.
The impact varies by county. Three-fourths of the counties will have an increase in productivity value of 40 to 60 percent. A few counties will increase more the 60 percent, and a few less than 30 percent.
Iowa agricultural land and buildings are assessed on productivity and not market value. Commodity yields, prices, and expenses from the 2003 through 2007 crop years are used in the productivity formula to arrive at the assessed value. Productivity numbers are affected by flood, drought, and local demand for commodities.
An administrative rule for assessing farm buildings is being fully implemented with this reassessment. In the past, farm buildings were assessed at varying percentages of replacement cost. The administrative rule creates more uniform building assessments statewide.
The assessor will notify property owners of an assessment change in agricultural land and buildings by mailing an assessment roll April 15.
The assessments for land per acre and buildings for each county are available online at www.state.ia.us/tax/locgov/propagricultu....
According to Cherokee County Assessor Robert Hart, all owners of agricultural property in the county will be receiving a notice of change of assessment for the 2009 assessment year (taxes payable 2010-2011). The total agricultural assessed value of Cherokee County has increased by 43 percent.
The taxable value of property is the assessed value multiplied by the rollback. For agricultural property in 2008 (taxes payable 2009-2010) the rollback was 93.8568 percent. The projected rollback for 2009 is 66 percent.
For a property assessed for $100,000 for 2008 and increased by 43 percent in 2009 to $143,000:
Assessed - $100,000 (2008); $143,000 (2009).
Rollback -- 93.8568 percent (2008); 66 percent (2009).
Taxable - $93,857 (2008); $97,380 (2009).
This results in a projected average increase of taxable value for agricultural property in Cherokee County of less than 1 percent, according to Hart.
Contact the Cherokee County Assessor for any questions regarding this assessment information.