Iowans are getting a nice (or not so nice) surprise in their mail this week…real estate property tax assessments. I know I did a double take when I saw how much my own home’s tax assessment had jumped and we’re hearing from many of our clients who are feeling the same way. So, if your eyes popped out when you opened your mail this week know you aren’t alone. Here’s the run down on real estate property tax assessments work and what you can do if you feel your assessment is out of line.
Property assessments are one of the key factors in determining how much owners pay in taxes. Iowa properties are reappraised by county assessors in odd-numbers years. This year is believed to be the steepest hike in residential values in history thanks to the influence of the crazy real estate market the past several years.
Many of my clients have asked me – with the recent downturn in the number of total homes being sold in our area aren’t home values decreasing and won’t that affect my assessment value?
What we’re seeing right now is the Des Moines Metro home prices continue to climb or at least stay steady despite fewer homes selling as compared to 2021 and 2022. In the under $300,000 price range it’s still a seller’s market. In the $400,000-900,000 range we’re sitting at an “even” market, meaning the market is balanced and doesn’t weigh heavily in favor of buyers or sellers. Homes priced over $1M are sitting a little longer and we’ve transitioned to a buyer’s market in the luxury arena. Over the past two years most of the Metro Des Moines areas saw home value gains between 20-24%.
What you received in the mail this week is not a tax bill. It’s a notice of assessed value and your new assessments will be reflected on your tax bill due in September 2024.
If you feel your assessment is out of line you can protest your assessment between April 2 – April 30.
If you decide to protest your tax assessment, you must furnish documentation to support your appeal. The burden of proof shall be upon the petitioner to prove that the valuation is excessive, inequitable, or inadequate per Iowa Code 441.21(3).
The Board of Review may request or subpoena the following information:
- A copy of an appraisal
- A copy of a sales agreement
- An itemized listing of any construction costs, remodeling costs, or repair costs
- Income and expense statements with rent rolls
If you purchased your home in late 2022 and it’s now assessed higher than your purchase price you may have a case for yourself. If we can be of any assistance, please don’t hesitate to give us a call.
Tiffan Yamen Real Estate Group at Keller Williams Greater Des Moines
Licensed in Iowa | 4001 Westown Parkway, West Des Moines, IA | 515.205.8122 | TiffanYamen.com
