Monroe County, Iowa

The Assessor is charged with several administrative and statutory duties.

The primary duty and responsibility is to assess all real property within the Assessor's jurisdiction except that which is otherwise provided by law. This would include residential, multi-residential, commercial, industrial, and agricultural classes of property.

Real property is revalued every two years.

The effective date of the assessment is January first of each year.

The Assessor determines a full or partial value for all new construction and improvements depending upon their state of completion as of that January first date

The Assessor is concerned with value, not taxes.

Taxing jurisdictions such as schools, cities and county, adopt budgets after public hearings.

This determines the tax levy, which is the rate of taxation required to raise the money budgeted.

The taxes you pay are proportional to the value of your property compared to the total value of property in your taxing district.

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 the first day of January 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 real property. To do this, the Assessor generally uses three approaches to value.

Market Approach - The first approach is 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 generally referred to as the MARKET APPROACH and is usually considered the most important in determining the value of residential property.

Cost Approach - The second approach to value is the COST APPROACH, which is 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 replacement value. Value of the land is added to arrive at an estimate of total property value.

Income Approach - The INCOME APROACH is the third method used if the property produces income. If the property is an income producing property, 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 real property is assessed at 100% of productivity and net earning capacity value. The Assessor considers the productivity and net earning capacity of the property. Agricultural income as reflected by production, prices, expenses, and various local conditions is taken into account.

Credits and Exemptions

Iowa law provides for a number of credits and exemptions. It is the property owner's responsibility to apply for these as provided by law. It is also the property owner's responsibility to report to the Assessor when they are no longer eligible for any credit or exemption they have applied for.

Barn Preservation - Sign up deadline:

February 1
After being approved the exemption will continue until it no longer qualifies. The barn must have been constructed prior to 1937 and be used for the storage of farm products

or feed or for the housing of farm animals or farm equipment.

The exemption is only for value added due to improvements or remodeling.

Business Property Tax Credit - Sign up deadline:

July 1
Each commercial or industrial parcel owner can receive the credit. After being approved, the credit will continue until any ownership change occurs. If adjoining parcels are owned by the same person, more information will be needed to determine how many credits will be allowed. This credit was created to reduce the tax on beginning amounts of business property value to the same rate as residential property.

Cattle Facilities Exemption - Sign up deadline: February 1 of the first year value is added.

This exemption is not an option unless the City Council or Board of Supervisors passed

an ordinance allowing this type of exemption. The exemption is applied to value added by new construction or remodeling. This is a partial exemption for a period of five years: First year exemption is 75%, second year 60%, third year 45%, fourth year 30%, and the 5th year 15%. One application covers all years for that project.

Data Center Business Property Tax Exemption - Sign up deadline:

February 1

Property (other than land and buildings) that is utilized by data center businesses will qualify for this exemption. Typically this would be computers and equipment, cooling systems and towers, temperature control infrastructure, power infrastructure, transformers, batteries, and power distribution which are necessary for the maintenance and operation of the web search portal site.

Disabled Veteran Homestead Tax Credit - Sign up deadline:

July 1

The veteran must have a permanent and total disability rating (service-connected) or individual unemployability rating that is compensated at the 100% disability rate (as certified by the United States Department of Veterans Affairs). A surviving spouse or child who receives dependency and indemnity compensation (DIC) is also eligible to receive this credit. The credit will continue until the owner moves or sells the property.

Family Farm Tax Credit - Sign up deadline:

November 1
The owners of farmland who are actively engaged in farming more than half of the tract or who leased/rent the land to a spouse, parent, grandparent, child, or grandchild will qualify for this credit. The minimum size is 10 acres, which includes all connecting parcels.

Forest Cover Exemption - Sign up deadline:

February 1
This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. Forest Cover includes land that is predominantly wooded. Unlike forest reserves, it can have any type of trees and shrubs. This exemption must be reapplied for each year.

Forest Reserve - Sign up deadline:

February 1

A Forest Reverse must contain at least 200 growing trees per acre with a minimum size of 2 acres. If buildings are present, 1 acre will be removed from the exemption. No livestock is allowed on the property, nor can the area be leased for hunting. If the area is leased or pastured, up to five years of recapture tax will be made unless the property has been owned by the same family for 10 years or more. After the application has been accepted, the area shall receive the tax exemption without having to refile. If sold, the buyer does not have to refile as the exemption will continue on to the new owner.

Fruit Tree Reservation Exemption - Sign up deadline:

February 1

The Fruit Tree exemption lasts for 8 years and is for tracts containing 1 to 10 acres with 40 apple trees or 70 other fruit trees per acre. There can be no economic gain made on these acres until the exemption has expired. After the application has been accepted, the area shall receive the tax exemption without having to refile. If sold, the buyer does not have to refile as the exemption will continue on to the new owner.

Geothermal Heating and Cooling Exemption- Sign up deadline:

February 1
The exemption is for the assessed value added due to a geothermal installation. The geothermal system must have been installed after July 1, 2012. Unlike other exemptions, it doesn't have to be applied for in the year it was first added. The exemption runs for 10 years after it is applied for.

Government owned property (Public school/City/County/State/Federal)

All federally owned properties are completely exempt from taxation. State owned property is also exempt, except in a few rare instances. City/County/Public school property is taxable only when it is being held for a profit. In those instances, the assessor makes the profit-held areas taxable and the remaining areas continue to be exempt from taxation. No form needs to be filed for the exemption.

Historic Property Rehabilitation Exemption - Sign up deadline:

February 1

The exempted value is from new construction or for rehabilitation of historic property. The application must contain an approved application for certified substantial rehabilitation from the state historic preservation officer. The exemption schedule: Years 1 through 4 after exemption is approved = total exemption of value added. Year 5 exemption = 75% of value added. Year 6 exemption = 50% of value added. Year 7 exemption = 25% of value added. If the property is sold, the exemption will continue without refiling.

Homestead Tax Credit - Sign up deadline:

July 1
This credit is calculated by taking the levy rate times 4,850 in taxable value. The property owner must live in the property for 6 months or longer each year, and must be a resident of Iowa. The credit will continue without further signing as long as it continues to qualify or until sold. Family Farm Corporations is the only corporation entity that may also qualify. People signing up will also be required to certify that a smoke detector has been, or will be installed in the home.

Impoundment Exemption - Sign up deadline:

February 1
The impoundment structure and underlying land are eligible for tax exempt status if: It is located outside any incorporated city, it has a storage capacity of at least 18 acre-feet of water and is used for agricultural purposes. The first year application must be accompanied by a water storage permit from the DNR and a copy of the impoundment plans. The exemption must be reapplied for each year.

Industrial Property Tax Exemption - Sign up deadline:

February 1 of the first year value is added.

This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. The exemption is applied to value added by new construction or remodeling. This is a partial exemption for a period of five years: First year exemption is 75%, second year 60%, third year 45%, fourth year 30%, and the 5th year 15%. One application covers all years for that project.

Manufactured/Mobile Home Park Storm Shelter - Sign up deadline: February 1
If the storm shelter is used exclusively as a storm shelter, the structure is fully exempt. If the storm shelter is used for any other purpose other than a storm shelter, the structure is 50% exempt and 50% taxable.

Methane Gas Conversion Exemption - Sign up deadline: February 1
Property used in the processes to decompose waste and convert the waste to gas qualifies for property tax exemption. Also included is property used to collect gases produced as a by-product of waste decomposition and property used to convert the gas to energy. None of this exemption is intended to exempt land or buildings.

Military Exemption - Sign up deadline:

July 1
Military personnel must be honorably discharged from active duty and served a minimum of 18 months, or at least one day during specific wars or conflicts, or if they served less than 18 months but were honorably discharged because of service related injuries. Members of Reserve Forces or Iowa National Guard who were activated for duty for a minimum of 90 days also qualify. The unremarried spouse of a qualified veteran will qualify for this exemption too. The exemption continues until the property is sold or no longer qualifies.

Native Prairie Exemption - Sign up deadline:

February 1
Any size tracts can be signed up for native prairie, and has to be land that has never been cultivated, is unimproved, and is natural or restored grasslands wherein at least 50% of the plant canopy is a mixture of grass and forb species which were found originally on Iowa’s prairie lands. The application must be accompanied by a certificate from the Iowa Department of Natural Resources stating the property is qualified.

One-Room School House Preservation - Sign up deadline:

February 1
Any increase in assessed value added to preserve the integrity, and internal and external features of the structure is exempt from taxation. It cannot be used for dwelling purposes. After it is filed, the exemption will continue without further applications.

Open Prairie Exemption - Sign up deadline:

February 1
Areas with a permanent grass cover qualify for this exemption. The minimum size tract is two acres, and it must not be used for pasture land. It should be protected from mowing except for weed control, so as to provide areas for nesting, winter cover and feeding areas for wildlife. This exemption needs to be signed up for annually. This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption.

Pollution Control Exemption - Sign up deadline:

February 1
Buildings and structures (or parts of them) which are used to control or abate air/water pollution are eligible for tax exemption. First year applications for pollution control property tax exemptions are to be submitted to the Iowa DNR for certification. A copy of the application for tax exemption and one of the certificates received from the DNR must be filed with the assessor by February 1. The exemption continues without further signup as long as it continues to qualify

Recreational Lakes - Sign up deadline:

February 1
This is a body of water which is not a river or stream, and is owned solely by a non-profit organization, and is used primarily for boating, fishing, swimming and other recreational purposes. This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption.

Recycling Exemption - Sign up deadline:

February 1
Filing this form exempts structures (or parts of structures) that are used in the conversion of waste glass, waste plastic, wastepaper products, waste paperboard, or waste wood products into new raw materials or products composed primarily of recycled material. The application shall include a certificate from the DNR certifying that the primary use of the pollution-control property is to control or abate air/water pollution. No further application is needed for exemption to continue.

Religious and Charitable Exemption - Sign up deadline:

February 1
Iowa law allows religious and charitably owned property to be full exempt from taxes. In order for the property to be exempt, it must be solely used for religious or charitable purposes. Being an IRS 501(c)3 nonprofit entity does not qualify a charitable property for exemption, as there still needs to be a charitable use in addition to the non-profit status. If a portion of the property is being held or operated for a profit, the property may be considered only partly exempt and will contain both taxable and exempt portions.

Rivers and Streams Exemption - Sign up deadline:

February 1
This exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption. The area must be two acres or more in size and cannot be cultivated closer than 33 feet from the ordinary high water mark. (Ordinary High water mark is the point where the stream typically overflows its banks.) This area must be protected from grazing of domestic livestock or any other commercial activity. Annual reapplication is required to keep this exemption in place.

River and Stream Banks Exemption - Sign up deadline:

February 1
Like the Rivers and Streams Exemption, this exemption is not an option unless the City Council or Board of Supervisors passed an ordinance allowing this type of exemption and the area must be two acres or more in size and cannot be cultivated closer than 33 feet from the ordinary high water mark. (Ordinary High water mark is the point where the stream typically overflows its banks.) This area must be protected from grazing of domestic livestock or any other commercial activity. Annual reapplication is required to keep this exemption in place.

Solar and Wind Tax Exemption - Sign up deadline:

None

Construction of solar energy or wind turbines do not increase the assessed value of the property for five years. There is no application form, as the exemption is automatically given.

Speculative Shell Buildings Property Tax Exemption - Sign up deadline: February 1
A City Council or Board of Supervisors or Board of Supervisors can pass an ordinance allowing this type of exemption. The ordinance will specify what type of ownership (non-profit, for-profit, community development board) can qualify. After qualifying, the new building will remain exempt until it is occupied, sold or leased.

Urban Revitalization Exemption - Sign up deadline:

February 1
A City Council or Board of Supervisors can pass an ordinance allowing this type of exemption on value added due to new construction. That ordinance will specify the areas of a city/county that qualify, as well as what types of property uses qualify. The ordinance will also specify the percentage of exemption and the time period allowed. As each city/county will set up individual exemption schedules, there is no standard application form. Applications are to be filed with the city clerk/ Board of Supervisors.

Web Search Portal Exemption - Sign up deadline:

February 1
Property (other than land and buildings) that is utilized by data center businesses will qualify for this exemption. Typically this would be computers and equipment, cooling systems and towers, temperature control infrastructure, power infrastructure, transformers, batteries, and power distribution which are necessary for the maintenance and operation of the web search portal site.

Wetlands Exemption - Sign up deadline:

February 1
The first application must include a certificate from the Iowa DNR stating that the land is protected wetland. Unlike most other exemptions, the exempt value is determined by using the average assessed value of the land, instead of the assessment for that specific area designated as wetland. Annual signups are required to keep the exemption in place. The application must be accompanied by a certificate from the Iowa Department of Natural Resources stating the property is qualified.

Wildlife Habitat - Sign up deadline:

February 1
This exemption can be up to two acres in size. The tax parcel must have an assessed classification of Agricultural. No exemption should be granted if there is any economic gain from this land. The exemption will continue without further signups until the property no longer qualifies.

 Assessed value and taxable value are not synonymous terms.

 Property is assessed as of January First.
 Property is reassessed every two years.
 Taxes are levied on a value determined by the auditor by applying a "roll back" percentage to the assessed value and deducting any applicable exemptions or credits. The "roll back" percentages vary each year.

On values determined as of January First, one does not stand to pay taxes until eighteen months later. The "roll back" is the percentage of actual value that is determined by the Director of Revenue and Finance each year on the several classes of property where the total value increase STATEWIDE exceeds four percent for each class of property. The percentage so determined by the Director of Revenue and Finance are certified to and applied by the local county auditor to all property in each class effected throughout the State. Percentages determined by the Director of Revenues and Finance are the same for all the assessing jurisdictions in the State.

Increases in assessed value of individual parcels of property, as determined by the assessor, may exceed four percent within a jurisdiction. Agricultural property, except agricultural dwellings, are assessed on the basis of productivity and net earning capacity using a five year crop average and capitalized at the rate set by the Legislature. The rate is currently seven percent. Tentative and final equalization orders are issued by the Director of Revenue and Finance in odd numbered years on or about August 15th, and October 1st respectively. The orders are sent to the various county auditors who apply them to the classes of property affected, if any.

Assessors and members of the Board of Review are appointed to their terms of office. Assessors, in addition to completing the required 150 hours of Continuing Education, must be approved by a majority vote of the Conference Board in order to be reappointed.

If you desire further information, questions concerning property values or other information relating thereto should be addressed to the assessor's office in the respective jurisdiction and not the Board of Supervisors or Treasurer. The assessors of Iowa hope that the information contained herein will be of value to the property owner and has clarified some of these problems and issues relating to assessment and the applicable laws.