CONSOLIDATION OF LOCAL LEVIES GIVES TAXPAYERS IDEA OF WHAT CAN BE EXPECTED WITH 2000-01 TAX ROLLS

As city, county and school budgeting processes have drawn to a close, property owners can now consolidate any levy increases or decreases to determine the direct result on the year 2000-2001 property tax roll. When also considering significant increases in both residential and agricultural property values, the result of 1999 revaluations, property taxes will be dramatically impacted by this year's budgets.
Specifically, residential properties throughout the county saw an average 13% increase in April 1999. An equalization order issued later that year met with an estimated 14.94% increase in agricultural bare land property values. Both revaluations have dramatically increased the property tax base throughout the county for property taxes payable in the fall of 2000 and spring of 2001.
Commercial and industrial properties, too, experienced an average 28.9% increase in early 2000; however, the effects of the rise in property values will not be evident until the 2001-2002 property tax year.
In regard to local budgets, levy decreases for fiscal year 2000-2001 were seen in those approved by the city, down $.19 from the previous year, and the assessor's office, a decrease of $.08.
Levy increases, on the other hand, were passed by the Allamakee Community School District at $.03 and the county at $.29 for urban properties and $.30 for rural properties.
In what way will these figures affect the average person's property taxes? The following are examples of potential changes to one's 2000-2001 property taxes payable. An example is offered given the various types of property one may own and assuming little to no change in the the ISU Ag Extension ($.17), Northeast Iowa Community College ($.55) and Tuberculosis ($.01) levies. Also assumed to show minimal change are fire, cemetery and ambulance levies in applicable townships.
Figures also show comparisons from the previous tax year in regard to assessed values, rollbacks and credits available, if any.
As is evident by the examples, residential property taxes within the city could increase by an estimated 11.5%, or at a rate of $1.62 per $1,000 in assessed valuation. Rural residential property taxes are expected to rise at a similar level, specifically 12.8%. The slight decrease in rollback percentages helps to a small degree in minimizing the increase in property taxes payable. The homestead tax credit deducts $4,850 from the taxable value of properties.
Also likely to see an increase in property taxes payable are bare ag land owners, specifically by 13.7% or $2.15 per $1,000 in assessed valuation. Though the example below uses specifically levies of Makee Township, the same basic property tax effects are expected throughout Allamakee County with little variance. Also important to note is that the rollback affecting 1999 ag land property assessments did decrease by nearly 4%, which helped to offset an even greater increase.
As shown in the example, both the family farm and ag land credits are expected to decrease property taxes payable on bare ag land by $245, assuming no changes at the state level. To inquire about eligibility for the credits, contact the county assessor's office.
While property taxes on bare ag land will increase significantly in the upcoming year, taxes payable on ag buildings are expected to decrease by 2.4%, again mainly due to the 4% decrease in rollbacks.
Commercial and industrial property owners will likely see a slight decrease in property taxes payable in the upcoming year, specifically 1.1%, mainly due to a slightly over 1% decrease in the rollback applicable for 1999 assessments. As stated before, both commercial and industrial properties were revaluated in early 2000 and will see an increase with the 2001-2002 tax year.
Other figures represented below include the total change in assessed valuations from 1998 to 1999 for each type of property within the county. The more recent figure represents the tax base for Allamakee Community School District in the upcoming year as the entity is able to tax on both rural and urban properties.
In addition, changes in assessed valuations for each type of property within the city of Waukon are also represented. While increases in residential land values are the result of an upward swing in market values, ag values increased due a five-year productivity formula showing an overall increase in Allamakee County for crop years 1993 through 1997. Factors considered in the formula include actual production and related prices and expenses during the same five-year period.
The increase in commercial and industrial tax base has been credited mainly to new construction in this area.
City, county and school budgets have been submitted to the state where they are pending final approval.