(Atlantic, Iowa) – Cass County Assessor Mary Anstey reports the 2023 property assessments will be mailed to you by April 1, 2023. Almost all residential properties will see large increases in value. Iowa is a market value-based state, and the market is determined by the prices buyers are paying for houses. New construction or major remodeling on individual properties will affect the percentage of change differently than market indicated adjustments. For instance, if you added a new two-stall garage, your percentage of increase in assessed value will be higher than your neighbor that did not add anything new. Will your property taxes increase by the same percentage that the assessment increased? Anstey says “No, they will not.”

Anstey says there are two main reasons for the large increases for 2023. The first one being that the Iowa Department of Revenue requires every assessor to use the Iowa Cost Manual. There had not been an update of this manual since 2008, until 2020. Cass County implemented the 2020 Iowa Cost Manual beginning January 1, 2023. As you all know, construction costs have seen steep increases over the course of that 12-year period.

The second reason goes back to Iowa being a market value-based state. The Code of Iowa states that residential and commercial property must be valued at market value in odd numbered years. This will be happening throughout the entire state of Iowa in 2023. Based on sales of residential properties throughout Cass County in 2022, we learn how much we need to increase values and what areas need larger increases than others, to stay at market values. Currently the residential sales ratios in Cass County indicate that there needs to be an increase in value of 26%. Based on current commercial sales those properties classified as commercial will not see a drastic increase. It is important to note that if assessors do not increase values when the data shows that they should have, the Iowa Department of Revenue will increase them in the fall of 2023. If the Iowa Department of Revenue increases the values instead of the assessor, all properties will receive the same percentage increase. This is not fair to those areas that did not need that same high-level increase. It would also lead to a much higher increase in the future for those that need a higher increase.

Agriculture values are set by the State using a 5-year productivity formula. For the January 1, 2023, assessment, the five crop years of date include 2017-2021.

“To summarize,” Anstey says, “there are two substantial drivers for these valuation increases. The first being the conversion to the state mandated 2020 Iowa Cost Manual and the second being increased property sales prices. Remember, your property taxes will NOT increase by the same percentage as your property assessment.

You will not pay taxes on your new value until September 2024 and March 2025. You can research your property value by going to the assessor’s website at: beacon.schneidercorp.com.

If you have any questions, feel free to stop in or call the Assessor’s office. Office hours are 8:00a.m. – 4:30p.m., Monday through Friday. The phone number is 712-243-2005.