Assessed Value is the value assigned to a property by the Assessor for Property Tax Purposes.
Residential, Commercial and Industrial real property are assessed at 100% Market Value. Market Value of a property is an estimate of the price that it would sell for on the open market on January 1st of the year of assessment. This is often referred to as the "arms-length transaction" or "willing buyer/willing seller" concept. The Assessor must determine the fair market value of the real property. To do this, the Assessor generally uses three approaches to value:
How It's Estimated?
Market Approach - to find properties that are comparable to the subject property and that have recently sold. Local conditions peculiar to the subject property are then considered. In order to adjust for local conditions, the Assessor also uses sales ratio studies to determine the general level of assessment in a community. This method is usually considered the most important in determining the value of a residential property.
Cost Approach - an estimate of how many dollars at current labor and material prices it would take to replace a property with one similar to it. In the event the improvement is not new, appropriate amounts of depreciation and obsolescence are deducted from the replacement value. Value of the land is added to arrive at an estimate of total property value.
Income Approach - used if the property produces income. It could be valued according to its ability to produce income under prudent management; in other words, what another investor would give for a property in order to gain its income. The income approach is the most complex of the three approaches because of the research, information, and analysis necessary for an accurate estimate of value. This method requires thorough knowledge of local and national financial conditions, as well as any developmental trends in the area of the subject property being appraised since errors or inaccurate information can seriously affect the final estimate of value.
Agricultural Property- Agricultural real property assessments are based on productivity and net earning capacity through the productivity formula and not market value. The productivity formula is comprised of a five-year rolling average of, among other factors, crop yields, commodity prices, and expenses at a county level. A dollar value per CSR (Corn Suitability Rating) point is determined and applied to every agricultural parcel in the county equally.
Why Value Changes?
State law requires that all real property be reassessed every two years. The current law requires the reassessment to occur in odd-numbered years. Changes in market value as indicated by research, sales ratio studies, and analysis of local conditions as well as economic trends both in and outside the construction industry are used in determining your assessment.
Notification and Appeal
If you disagree with the Assessor's estimate of value, please consider these two questions:
1. What is the actual market value of my property?
2. How does the value compare to similar properties in the neighborhood?
If you have any questions about the assessment of your property, please contact the Assessor's office.
You may file a written protest with the Board of Review which is composed of five members from within the county. The Board operates independently of the Assessor's office and has the power to confirm or to adjust either upward or downward any assessment.
If you are not satisfied with the Board's decision, appeals to the Property Assessment Appeal Board may be taken from the Board of Review action within 20 days of the postmark of their notification or you may bypass the Property Assessment Appeal Board and appeal to the district court within 20 days after adjournment or May 31, whichever date is later.