Property Taxes Update

It would probably be best to first explain how Iowa property tax laws work. Assessors re-value real estate at market value every two years as of January first of each odd-numbered year. That value remains in place for two years unless there is a change in the property by January first of the even-numbered year. Assessments are finalized on April 15th and formal protests may be made to the board of review by May 5th. After that date there can be no change to the assessment if an appeal has not been filed.

Taxes are collected in arrears, so the tax bill you receive actually pays the taxes for the previous year. The January 1, 2007 assessment was used to calculate taxes for the July 1, 2007 through June 30, 2008 property taxes. This bill is payable in September of 2008 and March of 2009. The January 1, 2008 assessment will be used to calculate taxes for the July 1, 2008 through June 30, 2009 property taxes. That bill will be payable in September of 2009 and March of 2010.

All of this is to explain that since the flood occurred in June, after the assessment date, the first opportunity for us to address the flood damage to your property will be at the January 1, 2009 assessment. We plan to look at each flood-affected property as near to January first as possible to determine the amount of damage. We will also be studying sales in these areas for any loss in value due to “stigma,” or buyers’ fear of future flooding. Many of the decisions we make will require judgment on our part, and we plan to be as understanding as possible when it comes to final value.

While we’re sympathetic to your very serious problems, we are limited by law in what we can do to help.

Please feel free to contact me if you have further questions.

Dennis Baldridge
Iowa City Assessor