How To Calculate Property Taxes

Based upon the budgets certified by the various levying authorities in your area, the County Auditor’s Office prepares and files the levy rates to be used in each county.  Budgets for each levying authority are based upon its taxable valuation as well as levy limits established by the state legislature.  Levy rates are expressed in dollars and cents per $1,000 of taxable valuation of your property.

Property taxes are based on the assessed property value as of January 1 of the preceding year, i.e. the assessments for January 1, 2011 (mailed in April of 2011)
Will be the basis for the taxes paid in September of 2012 and March 2013.  For a detailed primer of local property tax, see the Iowa Legislative Services Agency Local Property Tax Guide.

Here is an example of a tax calculation for the taxes payable in September 2012 and March 2013 (January 1, 2011 Assessments).

Assessed property was rolled back as follows:
Residential                           50.7518%
Agricultural Land                   57.5411%
Agricultural Buildings             57.5411%
Commercial                        100.0000%
Industrial                            100.0000%
Utilities*                              100.0000%
Railroads*                           100.0000%
*assessment and taxable value determined by Iowa Dept. of Revenue
For this example, a residential property is used and the levy rate is for McCallsburg/Colo –NESCO School District.
                            $125,000      Assessed value (100%)
                X        0.5007518      Rollback (residential class)
                             $63,439.75  Taxable value
              Less           $1,852      Military exemption (if applicable)
                            $61,587.75   Net taxable value
                X       0.03454579     Levy rate divided by $1,000 (McCallsburg/Colo-NESCO School)
                             $2,127.597  Gross tax
              Less           $106         Homestead credit (if applicable: $4,850 X 0.03454579X.63)**
                            $2,021.60     Property tax (rounded to nearest even dollar)
                            $1,101.80     Due September 30, 2012
                            $1,101.80     Due March 31, 2013
** Homestead Credit=[full homestead value ($4,850)] X [levy rate] X [% reimbursement by State (63% this year)]

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