2023 SCOTT COUNTY ASSESSMENT TOTALS BY PROPERTY CLASS
| Class | Parcel Count | Prior Value | Current Value | Growth/Decline | Average Change Percent |
|---|---|---|---|---|---|
| Ag Land | 5,909 | $287,541,920 | $389,378,300 | $101,836,380 | 35.4 |
| Ag Dwelling | 879 | $205,489,190 | $238,581,500 | $33,092,310 | 16.1 |
| Residential | 28,822 | $6,875,730,702 | $8,274,115,200 | $1,398,384,498 | 20.3 |
| R3+ (Multi-family) | 268 | $299,430,380 | $358,377,100 | $58,946,720 | 19.7 |
| Commercial | 1,727 | $990,885,380 | $1,251,466,300 | $260,580,920 | 26.3 |
| Industrial | 114 | $153,403,500 | $197,559,700 | $44,156,200 | 28.8 |
* Growth value totals include new construction & remodeling, etc
Assessed values for most county properties saw very hefty increases for 2023 assessments. This same real estate trend has occurred locally, throughout the entire State of Iowa, and nationally.
Plain and simple, the local real estate market drives assessment changes. It is imperative to understand that the County Assessor has absolutely nothing to do with the local real estate market, the sales of local real estate, what sellers ask, nor what buyers ultimately pay for real estate. The County Assessor doesn’t drive the local real estate market and doesn’t predict the future of the market, the county assessor follows it, using recent sales as the primary guide.
The assessor gets a copy of every single sale of every piece of real estate in the county and we track and analyze thousands of transactions annually. When the average sales prices are much higher than current assessments, the County Assessor adjusts all county property assessments to the market. And, “YES”, when the average sales prices are lower than current assessments the assessor will lower all county assessments – it’s the law. Local sales drive the assessed values and tell the assessor what to do.
SALES RATIOS
The assessor is mandated by law to use the local real estate sales transactions to adjust all property in the county so that assessed property values reflect what the market is doing. This is accomplished by taking the ratio of sales prices compared to assessed values, and then using the median ratio as a gauge to adjust assessed values. If the assessor does not do this locally, or doesn’t adjust values enough, the Iowa Department of Revenue will step in and do this for the assessor. So, there’s no way around it, it’s gonna happen one way or another.
Iowa Code only allows the statewide taxable valuation growth to increase by 3% each year. In order to do that, an assessment taxation limitation factor, called a rollback, is applied to all assessments for each classification. So, although ‘assessed’ values have increased significantly, when the new ‘taxable’ values are calculated and the new tax bills will be sent out (Sept 2024 - 18 months from now) a new rollback will be applied limiting the increase in property taxes. However, individual property taxes can increase higher [or lower] than the state mandated limitation based on individual property changes, such as new construction or remodeling etc, but overall state-wide taxation growth is limited.
The pros of a high market and higher assessments is that your property is worth much more than it was just two years ago, and there is much more equity in your property than there was just two years ago.
HOW DID THE SCOTT COUNTY ASSESSOR ACCOMPLISH RAISING SCOTT COUNTY PROPERTY VALUES IN 2023?
The Scott County Assessor’s Office has left assessed rural res and small town land values mostly stagnant for the past 10 to 20 years. We know that Scott County land assessed values have not been stagnant for 10 to 20 years and desperately needed to be updated. So, the County Assessor’s Office undertook and implemented a large county-wide land revaluation project. Using recent aerial photography, staff updated land information and assessments; acres, land rates, pricing, methodology, etc on each parcel. Some of the largest land value increases were seen in rural residential properties – where they were needed most. It is important to note these increases were based on recent [rural] land sales and should reflect current market value.
Also important to note that a property is not ‘taxed’ on just the land value portion of the assessment, and not just the improvement portion of the assessment [dwellings and buildings, etc], but is taxed on the ‘total assessed value’ of the property. To get to 20% [or higher] ‘total’ property value increases that the market is indicating, raising land values in some areas more than doubled or tripled the previous land assessed value. However, the ‘total’ assessed value only went up the needed amount to reflect the property’s total fair market value.
Another big factor in 2023 Scott County assessment changes is that the newest version of the Iowa Department of Revenue’s Real Estate Appraisal Manual was implemented this year. Iowa assessors are mandated by law to use this manual. This 2020 version has an average of +30% cost/product increases from the last manual that was issued to assessors back in 2008.
Ag land was adjusted by the state using calculations based on the previous 5 years of ag data – years 2018 to 2022. This means ag data from 6 and 7 years ago was no longer used in the formulas – years 2017 & 2016.
Ag outbuildings were also adjusted based on the new real estate appraisal manual data, an average +30% increase, but also a new state issued ag adjustment factor was applied adding an additional average of +4%.
Residential
The local market is following other larger Iowa county markets, and also the national market trends. Reports from assessors across the state are averaging +20% increases.
Residential 3+
Multi-Family [aka: apartments, etc] are also following the residential market.
Commercial
Commercial [business] real estate is also following very similar trend to residential real estate.
Ag Land
The value of agricultural land is determined by the Iowa Department of Revenue, not by the County Assessor. Every two years, the assessed value for agricultural land is determined by a five-year productivity net income analysis conducted by the Iowa Department of Revenue (using the five previous crop years). Values are further adjusted on individual parcels by CSRs (Corn Suitability Rating) and soil types found on each parcel which are based on the State of Iowa Soil Survey.
Ag Outbuildings
The assessed value outbuildings located on ag property [barns, machine sheds, bins, silos, etc] is initially calculated by the assessor, but then an ag factor percentage determined by the Iowa Department of Revenue is applied which greatly reduces the value. This factor is also adjusted and reapplied every two years.
Ag Dwellings
The value of dwellings located on ag property are assessed at residential market value.
Residential
The value of residential property is mandated by law to be at 100% of market value – what a willing buyer would pay a willing seller to purchase it.
Residential 3+ [formerly Multi-Res]
The value of apartment buildings and other multi-family living property is mandated by law to be at 100% of market value – what a willing buyer would pay a willing seller to purchase it. Note, as of 2022 R3+ property is now taxed the same as residential real estate.
Commercial
The value of commercial property is mandated by law to be at 100% of market value – what a willing buyer would pay a willing seller to purchase it.
Industrial
The value of industrial [manufacturing] property generally follows/aligns with similar types of commercial real estate.
If you disagree with the County Assessor's estimate of your property’s fair market value please consider these questions before proceeding:
The County Assessor’s goal is to be within 5% +/- of current fair market value. If you are certain the assessment does not reflect a tolerance of 5% of current fair market value, you may want to contact the assessor's office to discuss and/or appeal your assessment.
The following links can be found on the Scott County Assessor’s website at: www.scottcountyiowa.gov/assessor – Protesting An Assessment [left-side menu].
Assessment Appeal actions may include:
Informal and free:
If steps 1 and 2 don't resolve your concern: