Understanding Tax Calculation

Calculation is as Follows:

100% Actual Value x Rollback Rate by Property Class = Gross Taxable Value less Military Exemption = Net Taxable Value x Consolidated Tax Levy Rate = Gross Taxes less Homestead Credit less Ag Land Credit less Family Farm Credit less Elderly, Disabled, Low Income Credit = Net Taxes

100% Actual Value:

  • 100% Actual Value is determined by the City Assessor or County Assessor, except that values for Utility and Railroad property are determined by the Iowa Department of Revenue.

Rollback Rate by Property Class:

  • Rollback Rates are statewide by Property Class that are determined annually by the Iowa Department of Revenue.

Gross Taxable Value:

  • Gross Taxable Value equals 100% Actual Value multiplied by the appropriate Rollback Rate.

Military Exemption:

  • Men and women who served in the military may qualify and sign for a Military Exemption with the City or County Assessor. The tax value of this exemption is the Military Exemption divided by 1,000, multiplied by the Tax Levy Rate.

Net Taxable Value:

  • Net Taxable Value equals Gross Taxable Value minus Military Exemption. this is the value on which real estate taxes are calculated and on which the budgets of the various Levy Authorities are based.

Consolidated Tax Levy Rate:

  • The Consolidated Tax Levy Rate is the total of the Levy Rate for all Levy Authorities within a specific Tax District.

Gross Taxes:

  • Gross Taxes equals the Net Taxable Value divided by 1,000 multiplied by the Tax Levy Rate and rounded to the nearest cent.

Homestead Credit:

  • Homeowners may qualify and sign for a Homestead Exemption with the city or county assessor. For most taxpayers, the Homestead Credit equals 4,850 divided by 1,000, multiplied by the Tax Levy Rate multiplied by 77%.

Ag Land Credit:

  • Parcels with an Agricultural Class of at least 10 acres in size qualify for the Ag Land Credit. Smaller parcels may qualify in they are contiguous to a qualifying parcel and under the same ownership.

Family Farm Credit:

  • Parcels that qualify for the Ag Land Credit may qualify for the Family Farm Credit. Property owners must sign with the City or County Assessor and qualify under standards set by the State of Iowa.

Elderly/Disabled/Low-Income Credit:

  • Property owners may sign for the Elderly, Disabled, Low-Income Credit with the County Treasurer, and must qualify under standards set by the State of Iowa.

Net Taxes:

  • Net Taxes equals Gross Taxes minus Homestead, Ag Land, Family Farm, and Elderly/Disabled, Low-Income Credits. This value is rounded to the nearest even whole dollar.