As many property owners in Iowa are aware by now there has been a massive increase to property values in Iowa statewide. These went out April 1st, 2023 and without the published average we would assume a 30 to 40% increase over the last assessment. Many, anecdotally, have shared anywhere from 20 to 100% increase on their assessed property value across multiple counties across the state, myself included.
While it is true that the housing market has been a seller’s market with the covid reshuffling as well as the looming housing bubble that is reminiscent of 2008, these increases are far too substantial. In my own case, there was a 22% increase over what I paid 2 years ago, and 10% increase over a comparable home, on my block, in much better condition.
Property owners will be reassured that the tax burden is capped at 3% growth, meaning that the tax burden doesn’t increase as much as the property value, and so it may be tempting to take the extra equity, swallow the tax burden, and move on. However, stepping outside of the view as an individual I believe there are several implications that must be considered before accepting these assessments.
- Given the housing market signals, it may be capturing inflated equity at a temporary high point in the market.
- It creates incentives for equity loans in an unstable market where these investment ROIs are risky to property owners.
- It makes housing, particularly for new buyers, more unaffordable. Raises the market possibly higher than what would be negotiated otherwise. I want an Iowa that is affordable to young families.
- It will likely increase the advantageous cost of living that Iowa benefits from relative to the rest of the Untied States.
For these reasons I will be protesting my assessment and hopefully getting a more reasonable value that is true to the market. As I continue to journey through my own protest I will share information below, starting with the questions I sent to the assessor office in my county, and notes summarizing Iowa Code 441, which covers property assessments.
Questions Sent to my Assessor
- By which property classification below (District/Parcel, Geo Parcel, Neighborhood) is the minimum category used in assessment calculations and potential equalization orders?
- How many homes fall into the same category as mine?
- In this same category, what is the median market price for homes sold in the time frame between most recent assessment and previous one?
- In this same category, what are the minimum, maximum, and using a normal distribution, the standard deviations of market price for homes sold in the time frame between most recent assessment and previous one?
- In this same category, what is the median year built for homes sold in the time frame between most recent assessment and previous one?
- In this same category, what are the minimum, maximum, and using a normal distribution, the standard deviations of the year built for homes sold in the time frame between most recent assessment and previous one?
- In this same category, how many homes were physically assessed and was my home one of them?
- Does any form of human intelligence regarding the property owner, for example their occupation and income, factor into any calculations?
- What software programs does the Polk County Assessor office use in assessing property value by specific name?
- Do any of the computer programs and tools utilized by Polk County Assessor office use artificial intelligence features like machine learning, algorithm building, or neural network databases?
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