Property Tax Presentation at Sun Valley Nov 5, 2011

1. Property Tax Presentation at Sun Valley Nov 5, 2011 • Slides available at www.ringgoldcounty.us • Neil Morgan Assessor

2. Are my taxes more than others in the county?

4. 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

5. 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

6. 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

7. 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

8. 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

9. Value in 1000

18. New houses 10 years • County including SV 392 new homes present value 47 million • SV 153 new homes 25.8 million value

19. Doesn’t Iowa law limit increases to 4% per year?

20. 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.

21. 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

22. Ag Res 2011 57.5411 % (4%) 50.7518% (4%)

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. Sales-Sales-Sales Assessed values are based on sales

30. 2009 Sun Valley sales Sale land dwlg assess % 80.2

31. 2009 Town Sales Sale land dwlg assess % 104.3

32. 2009 all Sale land dwlg assess % 97.48

33. 2010 Sun Valley sales Sale land dwlg assess % 94.3

34. Town sales 2010 Sale land dwlg assess % 98.6

35. 2010 All sales Sale land dwlg assess % 97.8

36. Sales- SV 2011 96.9

37. Town Residential sales-2011 Sale land dwlg assess % 107.1

38. All 2011 104.3

39. 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

40. 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

41. 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

42. 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

44. Question???

45. 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

46. 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)

48. Bottom of Tax bill SV