Property Valuations Going Up Across the State of Iowa

(Radio Iowa) New property tax valuations are starting to go out and some people may suffer sticker shock when they see the increase. Sioux City Assessor, Tyler Erickson, says they have to do the valuations every two years to ensure valuations are within five percent of market value.

“This state actually takes all of our sales and they tell us compared to last year’s values your sales are 25 percent undervalued. We have to raise those values. If we do not raise those values, the state will come in the fall and raise them all up,” Erickson says. He says they use to measure in determining your value.

“We use the cost approach and we use the sales approach,” Erickson says, “and the reason we use that is cost resale should fairly come out. We value off cost and then we adjust for the market that it sits in.” He says the market adjustment ensures your home is being valued based on the sale of homes in your neighborhood that are comparable in cost. Erickson says your taxes don’t automatically go up the same about as the assessed value because there is a state rollback.

“If you look at your tax statement that you get in the mail, you have an assessed value and you have a taxable value. That taxable value is after the state rollback and it is drastically less than your assessed value, usually about 50 percent. It’s expected to go up in the 60 percent range, mid-60s and possibly 70 percent range,” he says.
Erickson says they are already getting calls from upset homeowners after assessments went out. He says you can appeal and should look at the comparable home sales in your neighborhood to see how much difference there is between the valuation and area sales.
(By Woody Gottburg, KSCJ, Sioux City)