Property TaxHikes Ordered for Pottawattamie, Mills Counties
BY TOM SHAW
WORLD-HERALD STAFF WRITER
Homeowners in Pottawattamie and Mills Counties could be in for bad news on their property tax bills next year.
The Iowa Department of Revenue has tentatively ordered across-the-board valuation increases of 12 percent on all residential property in the two counties. That's because property assessments in those counties seem to lag behind the housing market.
The order could mean hundreds of dollars in extra taxes, if the Iowa Legislature doesn't adjust the complicated formula for figuring property taxes on homes.
Statewide, the Department of Revenue has proposed an average 7.3 percent increase for residential property, a 3.3 percent increase for agricultural land and a 5.1 percent increase for commercial property. The purpose of the orders is to equalize assessments and ensure that properties are assessed at actual value.
The state reviews assessments every two years. In 2003, the state left residential valuations alone in Pottawattamie County.
Counties have a chance to appeal the orders next month. Any changes would not take effect until next year.
Variables used in Iowa's complicated formula for deciding property taxes could change by then. Two state programs - the rollback and homeownership credit - reduce the taxable valuation of homes by about half. The programs are reviewed regularly by the state Legislature.
The state's proposed 12 percent increase would mean a property tax increase of just under $300 for those living in Council Bluffs and the Council Bluffs School District with a home valued at $100,000.
That would be at the current tax, rollback and homeownership credit rates. Local governments and school districts determine their tax rates based on budget needs.
Pottawattamie County Assessor Steve Palm said he does not plan to appeal the proposed state order. He said he does not have the staff to review all residential properties every two years, as required by law. Palm also said the sustained real-estate boom has caused property to increase in value.
"The whole thing is based on sales," Palm said, adding his office has reviewed hundreds of sales records.
The median sale price for a home in the Council Bluffs or Carter Lake area increased 13 percent from the first seven months of 2004 to the same period this year. The median price went from $99,000 to $112,125, according to the Southwest Iowa Association of Realtors.
For all of southwest Iowa, the increase was 12 percent - from $97,850 to $110,000, according to the association.
John Jerkovich, president of Heartland Properties, and Randy Carroll, a Heartland sales associate, said they've seen an increase in the number of high-end home buyers coming to Council Bluffs from the Omaha area.
The reasons cited by the homebuyers are a shorter commute to downtown Omaha and lower taxes.
The Bent Tree development on the outskirts of Council Bluffs, with homes from $450,000 to $900,000, has had a number of relocations by ConAgra and Union Pacific employees, Jerkovich said.
Southwest Iowa Association of Realtors President Sharon White said new home construction and people upgrading their homes also have had a big impact on the housing market.
Pottawattamie County has about 35,000 residential properties. Palm placed an increase of less than 1 percent on some of those residential properties this year. The state order would be on top of that increase.
Mills County also would see a 12 percent increase in residential valuations under the proposed state changes. That would be on top of a less than 1 percent increase in valuations for homes in the county from the assessor.
Mills County officials had not yet decided whether to appeal the proposed increase, said assessor Christina Govig.
Crawford County faces an 11 percent increase in commercial property taxes from the state. That increase would have an impact on 640 commercial properties and would be added to the less than 0.5 percent increase from the assessor.
Crawford County Assessor Duane Zenk said he believes some of the 11 sales reviewed by the state are not the best indicators of property value in the county. But he will not appeal the state order because state officials already told him they will not take the sales out of their review.
"It's not the best system . . . but it's something that we have to live with," Zenk said.
Agricultural property in Pottawattamie County would see an increase of 7 percent under the proposed state order. Palm said the state dropped agricultural valuations in the county two years ago.
WORLD-HERALD STAFF WRITER
Homeowners in Pottawattamie and Mills Counties could be in for bad news on their property tax bills next year.
The Iowa Department of Revenue has tentatively ordered across-the-board valuation increases of 12 percent on all residential property in the two counties. That's because property assessments in those counties seem to lag behind the housing market.
The order could mean hundreds of dollars in extra taxes, if the Iowa Legislature doesn't adjust the complicated formula for figuring property taxes on homes.
Statewide, the Department of Revenue has proposed an average 7.3 percent increase for residential property, a 3.3 percent increase for agricultural land and a 5.1 percent increase for commercial property. The purpose of the orders is to equalize assessments and ensure that properties are assessed at actual value.
The state reviews assessments every two years. In 2003, the state left residential valuations alone in Pottawattamie County.
Counties have a chance to appeal the orders next month. Any changes would not take effect until next year.
Variables used in Iowa's complicated formula for deciding property taxes could change by then. Two state programs - the rollback and homeownership credit - reduce the taxable valuation of homes by about half. The programs are reviewed regularly by the state Legislature.
The state's proposed 12 percent increase would mean a property tax increase of just under $300 for those living in Council Bluffs and the Council Bluffs School District with a home valued at $100,000.
That would be at the current tax, rollback and homeownership credit rates. Local governments and school districts determine their tax rates based on budget needs.
Pottawattamie County Assessor Steve Palm said he does not plan to appeal the proposed state order. He said he does not have the staff to review all residential properties every two years, as required by law. Palm also said the sustained real-estate boom has caused property to increase in value.
"The whole thing is based on sales," Palm said, adding his office has reviewed hundreds of sales records.
The median sale price for a home in the Council Bluffs or Carter Lake area increased 13 percent from the first seven months of 2004 to the same period this year. The median price went from $99,000 to $112,125, according to the Southwest Iowa Association of Realtors.
For all of southwest Iowa, the increase was 12 percent - from $97,850 to $110,000, according to the association.
John Jerkovich, president of Heartland Properties, and Randy Carroll, a Heartland sales associate, said they've seen an increase in the number of high-end home buyers coming to Council Bluffs from the Omaha area.
The reasons cited by the homebuyers are a shorter commute to downtown Omaha and lower taxes.
The Bent Tree development on the outskirts of Council Bluffs, with homes from $450,000 to $900,000, has had a number of relocations by ConAgra and Union Pacific employees, Jerkovich said.
Southwest Iowa Association of Realtors President Sharon White said new home construction and people upgrading their homes also have had a big impact on the housing market.
Pottawattamie County has about 35,000 residential properties. Palm placed an increase of less than 1 percent on some of those residential properties this year. The state order would be on top of that increase.
Mills County also would see a 12 percent increase in residential valuations under the proposed state changes. That would be on top of a less than 1 percent increase in valuations for homes in the county from the assessor.
Mills County officials had not yet decided whether to appeal the proposed increase, said assessor Christina Govig.
Crawford County faces an 11 percent increase in commercial property taxes from the state. That increase would have an impact on 640 commercial properties and would be added to the less than 0.5 percent increase from the assessor.
Crawford County Assessor Duane Zenk said he believes some of the 11 sales reviewed by the state are not the best indicators of property value in the county. But he will not appeal the state order because state officials already told him they will not take the sales out of their review.
"It's not the best system . . . but it's something that we have to live with," Zenk said.
Agricultural property in Pottawattamie County would see an increase of 7 percent under the proposed state order. Palm said the state dropped agricultural valuations in the county two years ago.
posted by Susan VanSlyke at 2:14 PM
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