General Instructions Regarding Content
All entries are to reflect locally-assessed values after board of review action and before the application of any partial exemption, special valuation, or credit. Do not include valuations of properties that are centrally assessed by the Iowa Department of Revenue or subject to Utility Replacement Tax (“URT”).
- Example: An industrial building is valued for the current year by the assessor at $100,000. This building is subject to a partial exemption under Chapter 427B of 75%. The assessor is to report the full $100,000 value on the industrial page of the abstract.
On the partial exempt portion of your abstract, you are to report the partial exemption amounts, which in the preceding example, would be the $75,000 not subject to levy.
Properties that are 100% exempt should only be reported on the exempt property upload. Portions of 100% exempt property that are taxable due to use should not be reported on the abstract or reconciliation (except as transfers).
Reconciliation Instructions
Each page is divided into a section for townships and unincorporated areas and a section for incorporated cities and towns. Be certain to complete both sections of each page if applicable.
All values reported are to be after board of review action. Do not make separate entries on the reconciliation report for additions or deletions to value made by the board of review.
Section I of the Reconciliation
- Line A. Enter the total actual value after board of review action for the appropriate class of realty for the current year.
- Line B. Enter the prior year’s ending balance, which will reflect changes due to omitted parcels, judicial or PAAB rulings, or auditor corrections. In an even-numbered year the prior year’s ending balance will include application of any equalization orders and adjustments made by the board during the special equalization session.
IMPORTANT: All values reported on the Reconciliation Report are to be values before application of the assessment limitations (the 100% value). - Line C. Subtract the current year’s valuation from the prior year’s ending balance. Enter the difference at line “C”. The amount on line C should agree with the difference between the Total Additions and Total Deletions.
Section II Additions to Value
This section is to reflect increases in actual value from the prior year’s assessment.
- Line A. From Revaluation -Enter the total amount of increase in actual value which resulted from revaluation of existing properties.
IMPORTANT: Do not include new construction or improvements made to existing property as increases in actual value from revaluation. - Line B. Annexation -Enter the amount of additional actual value of properties resulting from annexation. These amounts are to balance with losses to annexation reported elsewhere on the reconciliation report unless such properties were annexed from another assessing jurisdiction.
- Line C. New Construction -Enter the additional amount of actual value resulting from new construction or improvements made to existing structures. The actual value of buildings removed should not be subtracted from this amount.
- Line D. Transferred from -Enter the amount of actual value added as a result of reclassification. Be sure to indicate the classes from which properties have been transferred. Except for exempt property, the amount added by the transfer must balance with the amount deleted through transfer elsewhere in the report.
- Line E. Other -Enter any increases in actual value which are not the result of revaluation, annexation, new construction, or reclassification (for example, the value of property omitted from the prior year’s assessment). Any amounts entered here should be explained in the comment section.
- Line F. Total Additions to Value -Enter the sum of Additions to Value, A through E.
Section III Deletions from Value
This section is to reflect reductions in actual value from the prior year’s assessment.
- Line A. From Revaluation -Enter the amount of decrease in actual value which resulted from revaluation of existing properties.
- Line B. Lost to Annexation -Enter the amount of actual value lost as a result of annexation. These amounts are to balance with additions from annexation reported elsewhere on the reconciliation report unless such properties were annexed by another assessing jurisdiction.
- Line C. Buildings Removed -Enter the total actual value of buildings which have been removed since the prior year’s assessment.
- Line D. Transferred to -Enter the amount of actual value deleted as a result of reclassification. Be sure to indicate the classes to which such properties have been transferred. With the exception of exempt property, the amount reported here is to appear elsewhere in the reconciliation report as an addition.
- Line E. Other -Enter any decreases in actual value which do not fit into one of the four categories listed above. Any amounts entered here should be explained in the comment section.
- Line F. Total Deletions From Value -Enter the sum of Deletions from Value, A through E.
About Dual Classification Valuation
Dual class counts are by unit; a unit is not a dwelling but is an operating unit as defined by the International Association of Assessing Officers (“IAAO”).
Valuation for dual class property should be reported in the classification to which it belongs, for example, a commercial property with one residential apartment would have the commercial value reported on the commercial abstract and the residential value reported on the residential abstract.
Section 42 Reporting
Section 42 Housing is subject to special valuation procedures. Section 42 Housing reporting is a subtotal of the value reported in each of the classifications. Any change to valuation should be reported as revaluation in the reconciliation for the classification being transferred into or as revaluation on the Section 42 abstract (as applicable). Section 42 Housing subject to special valuation procedures is required to be classified as commercial pursuant to Iowa Administrative Code rule 701–102.1(6) as a primary classification or under dual classification (as applicable). See also Iowa Code section 441.21(2).
About Wind Energy conversion property specially valued under Iowa Code section 427B.26
Wind energy conversion property that is being increased on the net assessment schedule should be reported as other and an explanation provided. Do not include the value of wind energy reported (under 427B.26) in the aggregate value of your industrial abstract or reconciliation.
If you have more than one type of addition or deletion reported under other you will need to provide an explanation for each type as well as the value associated to each type of other.
"Net acquisition cost" is defined under Iowa Code section 427B.26(4)(b) to mean "the acquired cost of the property including all foundations and installation cost less any excess cost judgment . . . " Taxpayers may not submit to assessors the fair market value or depreciated book value of the new property in lieu of the net acquisition cost. Assessors and taxpayers should also note that the assessor has authority under Iowa Code section 441.17 to require any taxpayer to provide necessary documents for the assessor to properly value property for assessment purposes.
About Units (for commercial, industrial and residential 3+ reporting)
The definition of a unit for the abstract is: property that would be considered operating as one economic unit or likely sold as one.
Example 1: A grain elevator that is comprised of multiple parcels with improvements, some vacant land, probably railroad going through the parcels and it sits in the middle or edge of a small town. Some parcels may be within the city limits and other contiguous parcels may be outside city limits. All the parcels for that elevator would be considered one unit for the abstract.
Example 2: Downtown buildings that have an alley that runs behind them and there may be parking lots that are used with the buildings on the other side of the alley. Each building would be considered a unit for the abstract and the parking lot would be counted as part of the building unit. The parking lot would not be counted as a unit because it would already be included with the building.
Example 3: A mobile home park in your jurisdiction that does not have any building counts. The mobile home park would be considered a unit. If there are separate parcels for garages, parking lots, vacant land, decks or “other”, as long as the parcels are being operated as one economic unit then the unit count would be one.
Example 4: Apartments - You have 3 buildings with 8 apartments in each building and the parcels are contiguous to each other and operating as one economic unit. The unit count on the abstract would be one. If there are separate parcels for garages, parking lots or vacant land, as long as the parcels are being operated as one economic unit then the unit count would be one.