Emmet County Assessor Barb Bohm reports that agricultural values are to increase for 2013.
Emmet County agricultural property owners are going to be seeing a large increase in their assessed land values. The Iowa Department of Revenue issued preliminary figures to be used for the 2013 agriculture land and building values. These figures are not directly associated with land purchase prices. Instead, the formula used to value land focuses on a five-year productivity average, i.e., crop expenses versus revenues received.
Emmet County Agricultural valuation for 2011 was $400 million, which includes land and buildings. The new value for 2013 is $552 million, which again includes both land and buildings. The land valuation will be increasing by about 43 percent.
Despite the dramatic valuation leaps, associated tax increases will not be nearly as sharp. Iowa law allows for no more than a 4 percent statewide tax growth. While Emmet County ag property owners will see more than a 4 percent tax increase, it will not be as dramatic of an increase as the land values because they will see a change in the agricultural rollback number which is currently about 60 percent. It is projected to drop to somewhere between 44 to 46 percent. The assessed value will go up, but the rollback will limit the increase in the taxable value on that property.
Here is an example:
Emmet County Agriculture Land Value Changes
Formula: 40 acres x $70 Avg. *CSR x $23.34 CSR rate
2012 assessed value$65,400
2012 rollback x 59.9 percent
Formula: 40 Acres x $70 avg. CSR x $33.40 CSR rate
2013 assessed value$93,500
2013 estimated rollback x 45 percent
Estimated taxable value$42,100
That's about a 7 percent increase.
*CSR is Corn Suitability Rating
The 2013 numbers are preliminary figures at this time.