Property Tax Presentation at Sun Valley Nov 5, 2011 Slides available at Neil Morgan Assessor

Are my taxes more than others in the county?

LocationDiagonal CityMt Ayr CityMonroe TownshipSun Valley School countywide levies combined Rural Basic City Sewer Township Total

Rural Improvement Taxes RIZ sets no levy It takes taxable value and resulting consolidated levy set by other boards 12.08% of tax goes to RIZ on all property taxes in RIZ district Does not take debt service tax dollars

2009 Equalization Cycle 2 years ago Ringgold County received a 14% tentative residential equalization order. This was, through appeal, reduced to a 7% final order It was applied across the entire county

Strictly by numbers Sun Valley warranted about a 21% increase The rest of the county was on target This is based on sales that generally predated the housing crash The 7% postponed determining new values until some stability returned to market SV Market has held relatively steady SV Many houses are for sale

What were the value changes 2010 value, current tax bills Sun Valley on water lots were reduced by 7% --Off water 50% Every house in the county was revalued Most SV Frame houses were up from 5- 18% Most SV Manufactured homes held steady Houses in the rest of the county generally had small changes some up and some down

What to expect next year 2011 valuation Sept 2012 bill Assessed value same Rollback adds about 4.3% to taxable Ag drops in Ringgold County so county totals about same (expect no to little reduction in levies) I have no idea what the school might do County levies appear to hold only steady Road bond if passed $143 per 100,000 assessed

Value in 1000

Taxable value by class --Ag values as building and land residential62,38564,99171,45472,87376,64379,43889,64595,629106,827116,529123,060 ag land88,92188,80388,79788,77588,76788,73393,70397,579111,480116,054107,413 ag building25,74124,83224,00623,59822,32423,20121,31023,0337,2007,8447,562 commercial10,17111,49111,84212,47713,67714,69915,15115,66816,30916,76817,210 ind1,3942,1582,2242,2262,2371,9121,8641,7331,7871,7651,790 utilities8,9198,6907,6397,8587,6397,8097,7246,4436,4306,6416,600 gas & elec10,63511,1239,6609,1749,1679,3898,7858,6748,1308,081 TOTAL208,166212,088215,622216,981220,454225,181238,182248,759258,163273,682271,716

all numbers in thousandsTaxable value by class --Ag values as one total residential62,38564,99171,45472,87376,64379,43889,64595,629106,827116,529123,060 AG TOTAL114,662113,635112,803112,373111,091111,934115,013120,612118,680123,898114,975 commercial10,17111,49111,84212,47713,67714,69915,15115,66816,30916,76817,210 ind1,3942,1582,2242,2262,2371,9121,8641,7331,7871,7651,790 utilities8,9198,6907,6397,8587,6397,8097,7246,4436,4306,6416,600 gas & elec10,63511,1239,6609,1749,1679,3898,7858,6748,1308,081 TOTAL208,166212,088215,622216,981220,454225,181238,182248,759258,163273,682271,716 TIF &RIZ4,60111,53711,34718, ,23210,74510, County Total Taxable208,166207,487204,085205,634201,461224,699237,384245,527247,418263,573261, %-1.6%0.8%-2.0%11.5%5.6%3.4%0.8%6.5%-0.7%

Est TOTAL208,166212,088215,622216,981220,454225,181238,182245,527258,163273,682271,716 less TIF &RIZ County Total Taxable208,166207,487204,085205,634201,461224,699237,384245,527247,418263,573261, %-1.6%0.8%-2.0%11.5%5.6%3.4%0.8%6.5%-0.7%

New houses 10 years County including SV 392 new homes present value 47 million SV 153 new homes 25.8 million value

Doesn’t Iowa law limit increases to 4% per year?

Iowa law limits growth in any class of property to 4% per year on a statewide basis. It also limits ag and residential to no more than the other, ag or residential, increase.

This is how the rollback has gone to about 50% It is also the source of the commercial property having such a high net tax as this class presently have no rollback

Ag Res % (4%) % (4%)

Statewide rollback In an effort to limit shift in tax burdens on a statewide basis some counties will have wide shifts in a effort to maintain the statewide stability. If a county goes up by more than state average plus 4% by definition some other county has to lose taxable value

Proposed Property Tax Law 2 ideas Dem and Rep Dem- Tax credits to commercial owners Rep- Move commercial rollback to 60 or 75%, reimburse local governments for some of lost revenue. Would result in some shifts to other classes Neither would do much for your set of circumstances

Ag valuations in Ringgold County Ringgold County effectively has 2 classes of property Agricultural and Residential Agricultural values are determined by ‘productivity’ calculations. I have been trying to get these productivity calculations done ‘correctly’ but have had no success to date

Ag valuations Ringgold County has had no effective increase in value in agricultural property 10 counties in South Central Iowa are in the same general situation to varying degrees. The state average is about 32% since 2003 Some counties have in excess of 75% increases since 2003

Disclaimer Some of the counties with large increases did have in the range of 25-35% decreases between Ringgold County did not have much decrease in that time frame

Ag valuations In no way am I suggesting that Sun Valley taxes would not have increased very substantially Levies would potentially be a little lower if I am successful. Largest tax is to school. A larger tax base should lower overall rate but I am not a school aid formula expert I do not set any levy rates

Sales-Sales-Sales Assessed values are based on sales

2009 Sun Valley sales 80.2 Sale land dwlg assess %

2009 Town Sales Sale land dwlg assess %

2009 all Sale land dwlg assess %

2010 Sun Valley sales 94.3 Sale land dwlg assess %

Town sales Sale land dwlg assess %

2010 All sales 97.8 Sale land dwlg assess %

Sales- SV

Town Residential sales Sale land dwlg assess %

All

Sales history sales average 79, & sales average 104, sales average 199, sales average 300,000

Sun Valley valuation 2001 assessed valuation 47,250, assessed valuation 131,643, million South Shore and Walnut Woods subdivision land (new) 25.8 million is assessed value of houses that have been built since 2001 Remodeled and new additions not calculated

Sun Valley is very important SV is a very significant portion of the county total taxable value It is not the only portion It is an even more significant portion of the growth in county valuation

Road bond Vote Please vote Nov 8 It is a costly project $9,000,000 For each 100,000 of assessed value bill will go up $143 on residential property for 15 years Map available at

Question???

What happens if incorporated Rural basic and township drop out New city tax comes in Fire protection and police protection would need worked out Golf course if owned by city can be exempt Residents will be elected officials City expenses will be paid by valuation

Incorporate RIZ is rural only TIF can be passed by city Abatements are at option of city City would have bonding powers Rural basic is about $250,000 If road bonding passes cities pay at same rate as rural (no change)

LocationDiagonal CityMt Ayr CityMonroe TownshipSun Valley School countywide levies combined Rural Basic City Sewer Township Total

Bottom of Tax bill SV