The Iowa Department of Revenue has established the first property tax assessment limits under a reform law that went into effect this year.
Under the law, the increase in taxable values of residential and agricultural properties was limited to 3 percent, down from 4 percent in prior years. The law also reduced the taxable value of commercial, industrial and railroad properties to 95 percent of assessed valuation, down from 100 percent. In 2014, the taxable value for those properties will drop to 90 percent.
Hear are the values for 2013:
- Residential property is 54.4 percent of the assessed value, an increase from the 2012 level of 52.8 percent.
- The taxable value for agricultural property is 43.4 percent of the assessed value, a decrease from 59.9 percent.
- No adjustment was ordered for utility property because its assessed value did not increase enough to qualify for reduction. Utility property is limited to an 8 percent annual growth.
Tax liabilities based on the 2013 taxable values are payable in fiscal year 2014-15 and will not be determined until local taxing bodies establish their property tax needs early next year.
Click here to read a Business Record article about changes in tax laws.