Two Iowa communities received equalization orders from the Iowa Department of Revenue. Residential property owners in Sioux City will see an eight-percent increase in assessment and multi-residential property owners in Scott County will have their valuation increased 21 percent.
What is Equalization?
If the assessment of a local property class is five percent or more above or below similar property statewide, the state "equalizes" the assessment. The change impacts the entire property classification, not individual properties. Their reasoning is, "This contributes to a more fair distribution of state aid, such as aid to schools. It also helps to equally distribute the total tax burden within the area."
Does this Guarantee a Property Tax Increase?
No. As we explained with a really cool graphic in a previous post, county assessors and your property's value DO NOT determine your property tax bill. Assessments are only one part of the formula.
Members of your city council, the county board of supervisors, and school boards have the largest impact on your final bill when they set their budgets.
The Next Steps
The assessors in Sioux City and Scott County each say they are appealing the order.