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Property Tax Presentation at Sun Valley Nov 5, 2011
• Slides available at www.ringgoldcounty.us
• Neil Morgan Assessor
Are my taxes more than others in the county?
Location Diagonal City Mt Ayr City Monroe Township Sun Valley
School 19.38775 16.47282 16.47282 16.47282
10 countywide levies combined 14.27684 14.27684 14.27684 14.27684
Rural Basic --- --- 3.9500 3.9500
City 19.88433 15.92908 --- ---
Sewer --- --- --- 1.62673
Township --- --- 0.60472 0.71046
Total 53.54892 46.67874 35.30438 37.03685
Rural Improvement Taxes
• RIZ sets no levy
• It takes taxable value and resulting consolidated levy set by other boards
• 12.08% of tax goes to RIZ on all property taxes in RIZ district
• Does not take debt service tax dollars
2009 Equalization Cycle2 years ago
Ringgold County received a 14% tentative residential equalization order.
This was, through appeal, reduced to a 7% final order
It was applied across the entire county
Strictly by numbers Sun Valley warranted about a 21% increase
• The rest of the county was on target
• This is based on sales that generally predated the housing crash
• The 7% postponed determining new values until some stability returned to market
• SV Market has held relatively steady
• SV Many houses are for sale
What were the value changes2010 value, current tax bills
• Sun Valley on water lots were reduced by 7% --Off water 50%
• Every house in the county was revalued• Most SV Frame houses were up from 5-
18%• Most SV Manufactured homes held steady• Houses in the rest of the county generally
had small changes some up and some down
What to expect next year2011 valuation Sept 2012 bill
• Assessed value same• Rollback adds about 4.3% to taxable• Ag drops in Ringgold County so county
totals about same (expect no to little reduction in levies)
• I have no idea what the school might do• County levies appear to hold only steady• Road bond if passed $143 per 100,000
assessed
County Total Taxable25.6% from 2001 - 2011
0
50,000
100,000
150,000
200,000
250,000
300,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
County Total Taxable
Value in 1000
Taxable Value by Class Ag Combined
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
residential
AG TOTAL
commercial
ind
utilities
gas & elec
Taxable Value by class ag building and land separate
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
residential
ag land
ag building
commercial
ind
utilities
gas & elec
Taxable value by class --Ag values as building and land
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
residential 62,385 64,991 71,454 72,873 76,643 79,438 89,645 95,629 106,827 116,529 123,060
ag land 88,921 88,803 88,797 88,775 88,767 88,733 93,703 97,579 111,480 116,054 107,413
ag building 25,741 24,832 24,006 23,598 22,324 23,201 21,310 23,033 7,200 7,844 7,562
commercial 10,171 11,491 11,842 12,477 13,677 14,699 15,151 15,668 16,309 16,768 17,210
ind 1,394 2,158 2,224 2,226 2,237 1,912 1,864 1,733 1,787 1,765 1,790
utilities 8,919 8,690 7,639 7,858 7,639 7,809 7,724 6,443 6,430 6,641 6,600
gas & elec 10,635 11,123 9,660 9,174 9,167 9,389 8,785 8,674 8,130 8,081 8,081
TOTAL 208,166 212,088 215,622 216,981 220,454 225,181 238,182 248,759 258,163 273,682 271,716
all numbers in thousands Taxable value by class --Ag values as one total
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
residential 62,385 64,991 71,454 72,873 76,643 79,438 89,645 95,629 106,827 116,529 123,060
AG TOTAL 114,662 113,635 112,803 112,373 111,091 111,934 115,013 120,612 118,680 123,898 114,975
commercial 10,171 11,491 11,842 12,477 13,677 14,699 15,151 15,668 16,309 16,768 17,210
ind 1,394 2,158 2,224 2,226 2,237 1,912 1,864 1,733 1,787 1,765 1,790
utilities 8,919 8,690 7,639 7,858 7,639 7,809 7,724 6,443 6,430 6,641 6,600
gas & elec 10,635 11,123 9,660 9,174 9,167 9,389 8,785 8,674 8,130 8,081 8,081
TOTAL 208,166 212,088 215,622 216,981 220,454 225,181 238,182 248,759 258,163 273,682 271,716
TIF &RIZ 4,601 11,537 11,347 18,993 482 798 3,232 10,745 10,109 10,109
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
County Total Taxable 208,166 207,487 204,085 205,634 201,461 224,699 237,384 245,527 247,418 263,573 261,607
-0.3% -1.6% 0.8% -2.0% 11.5% 5.6% 3.4% 0.8% 6.5% -0.7%
Est
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
TOTAL 208,166 212,088 215,622 216,981 220,454 225,181 238,182 245,527 258,163 273,682 271,716
less
TIF &RIZ 4601 11537 11347 18993 482 798 3232 10745 10109 10109
County Total Taxable 208,166 207,487 204,085 205,634 201,461 224,699 237,384 245,527 247,418 263,573 261,607
-0.3% -1.6% 0.8% -2.0% 11.5% 5.6% 3.4% 0.8% 6.5% -0.7%
2001 Location Distribution207 million
Mt Ayr14%
Sun Valley12%
Rural non/SV70%
All other tow ns4%
Mt Ayr
Sun Valley
Rural non/SV
All other tow ns
2006 Location Distribution223 million
Mt Ayr15%
Sun Valley17%
Rural non/SV64%
All other towns4%
Mt Ayr
Sun Valley
Rural non/SV
All other towns
2010 Location Distribution262 million
Mt Ayr14%
Sun Valley21%
Rural non/SV61%
All other tow ns4%
Mt Ayr
Sun Valley
Rural non/SV
All other tow ns
New houses 10 years
• County including SV 392 new homes present value 47 million
• SV 153 new homes 25.8 million value
Doesn’t Iowa law limit increases to 4% per year?
Doesn’t Iowa law limit increases to 4% per year?
• Iowa law limits growth in any class of property to 4% per year on a statewide basis. It also limits ag and residential to no more than the other, ag or residential, increase.
This is how the rollback has gone to about 50%
It is also the source of the commercial property having such a high net tax as this class presently have no rollback
Ag Res
2011 57.5411 % (4%) 50.7518% (4%)
Statewide rollback
• In an effort to limit shift in tax burdens on a statewide basis some counties will have wide shifts in a effort to maintain the statewide stability.
• If a county goes up by more than state average plus 4% by definition some other county has to lose taxable value
Proposed Property Tax Law
• 2 ideas Dem and Rep
• Dem- Tax credits to commercial owners
• Rep- Move commercial rollback to 60 or 75%, reimburse local governments for some of lost revenue. Would result in some shifts to other classes
• Neither would do much for your set of circumstances
Ag valuations in Ringgold County
• Ringgold County effectively has 2 classes of property
• Agricultural and Residential
• Agricultural values are determined by ‘productivity’ calculations.
• I have been trying to get these productivity calculations done ‘correctly’ but have had no success to date
Ag valuations
• Ringgold County has had no effective increase in value in agricultural property
• 10 counties in South Central Iowa are in the same general situation to varying degrees.
• The state average is about 32% since 2003
• Some counties have in excess of 75% increases since 2003
Disclaimer
• Some of the counties with large increases did have in the range of 25-35% decreases between 2001- 2003
• Ringgold County did not have much decrease in that time frame
Ag valuations
• In no way am I suggesting that Sun Valley taxes would not have increased very substantially
• Levies would potentially be a little lower if I am successful.
• Largest tax is to school. A larger tax base should lower overall rate but I am not a school aid formula expert
• I do not set any levy rates
Sales-Sales-SalesAssessed values are based on
sales
2009 Sun Valley sales
80.2
Sale land dwlg assess %
2009 Town Sales
104.3
Sale land dwlg assess %
2009 all
97.48
Sale land dwlg assess %
2010 Sun Valley sales
94.3
Sale land dwlg assess %
Town sales 2010
98.6
Sale land dwlg assess %
2010 All sales
97.8
Sale land dwlg assess %
Sales- SV 2011
96.9
Town Residential sales-2011
107.1
Sale land dwlg assess %
All 2011
104.3
Sales history
• 1995 11 sales average 79,800
• 1998 & 99 32 sales average 104,000
• 2005 18 sales average 199,500
• 2010 10 sales average 300,000
Sun Valley valuation
• 2001 assessed valuation 47,250,547
• 2011 assessed valuation 131,643,627
• 9.2 million South Shore and Walnut Woods subdivision land (new)
• 25.8 million is assessed value of houses that have been built since 2001
• Remodeled and new additions not calculated
Sun Valley is very important
• SV is a very significant portion of the county total taxable value
• It is not the only portion
• It is an even more significant portion of the growth in county valuation
Road bond Vote
• Please vote Nov 8
• It is a costly project $9,000,000
• For each 100,000 of assessed value bill will go up $143 on residential property for 15 years
• Map available at www.ringgoldcounty.us
Question???
What happens if incorporated
• Rural basic and township drop out
• New city tax comes in
• Fire protection and police protection would need worked out
• Golf course if owned by city can be exempt
• Residents will be elected officials
• City expenses will be paid by valuation
Incorporate
• RIZ is rural only
• TIF can be passed by city
• Abatements are at option of city
• City would have bonding powers
• Rural basic is about $250,000
• If road bonding passes cities pay at same rate as rural (no change)
Location Diagonal City Mt Ayr City Monroe Township Sun Valley
School 19.38775 16.47282 16.47282 16.47282
10 countywide levies combined 14.27684 14.27684 14.27684 14.27684
Rural Basic --- --- 3.9500 3.9500
City 19.88433 15.92908 --- ---
Sewer --- --- --- 1.62673
Township --- --- 0.60472 0.71046
Total 53.54892 46.67874 35.30438 37.03685
Bottom of Tax bill SV
