Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 102 - Assessment Practices and Equalization › Rule 701-102.3 - Valuation of Agricultural Real Estate

Current through Register Vol. 47, No. 3, July 24, 2024
Agricultural real estate shall be assessed at its actual
				  value as defined in Iowa Code section
				  441.21 by giving exclusive
				  consideration to its productivity and net earning capacity. In determining the
				  actual value of agricultural real estate, city and county assessors shall use
				  the Iowa Real Property Appraisal Manual and any other guidelines issued by the
				  department of revenue pursuant to Iowa Code section
				  421.17(17).
(1)
Productivity.
a. In determining the productivity and net
				earning capacity of agricultural real estate, the assessor shall also use
				available data from Iowa State University, the United States Department of
				Agriculture (USDA) National Agricultural Statistics Service (NASS), the USDA
				Farm Service Agency (FSA), the Iowa department of revenue, or other reliable
				sources. The assessor shall also consider the results of a modern soil survey,
				if completed. The assessor shall determine the actual valuation of agricultural
				real estate within the assessing jurisdiction and distribute such valuation
				throughout the jurisdiction so that each parcel of real estate is assessed at
				its actual value as defined in Iowa Code section
				441.21.
b. In distributing such valuation to each
				parcel under paragraph 71.3(1)
"a,"
the assessor shall adjust
				non-cropland. The adjustment shall be applied to non-cropland with a corn
				suitability rating (CSR) that is greater than 50 percent of the average CSR for
				cropland for the county. The adjustment shall be determined for each county
				based upon the five-year average difference in cash rent between non-irrigated
				cropland and pasture land as published by NASS. The assessor may utilize the
				USDA FSA-published Common Land Unit digital data or other reliable sources in
				determining non-cropland. Counties shall implement the adjustments under this
				paragraph on or before the 2017 assessment year. The department of revenue may,
				in a case involving hardship, extend the implementation of the adjustments
				required under this paragraph to the 2019 assessment year. No extension of time
				shall be granted unless the county makes a written request to the department of
				revenue for such action.
c. A
				taxpayer may apply to the county for the adjustment to non-cropland under
				paragraph 71.3(1)
"b"
beginning with the 2014 assessment and
				until the county's full implementation of this subrule. Upon application, and
				subsequent approval by the assessor, the county assessor shall adjust
				non-cropland as provided in paragraph 71.3(1)
"b.
" Once a
				taxpayer applies for the adjustment, and upon approval, the assessor shall make
				the adjustment to the assessment year for which the application was submitted
				and until the county's full implementation of this subrule, without the need to
				reapply for the adjustment.
d.
				EXAMPLE. The following is an example of the calculation used to compute
				adjustment on land determined to be non-cropland with a CSR that is greater
				than 50 percent of the average CSR for cropland for the county:
Average county CSR rating for cropland
80 CSR
50% of average cropland CSR
40 CSR
Example of non-cropland soil 11b CSR rating
58 CSR
Non-cropland CSR points to be adjusted
58 - 40 = 18 CSR points
5-year average rent for non-irrigated cropland
$163.60
5-year average rent for pasture land
$48.30
Percent difference (rounded)
1 - ($48.30/$163.60) =70%
Apply the percent difference to points to be
							 adjusted
18 CSR points Ã— (1 - .70) = 5.40 adjusted CSR
							 points
Adjusted CSR non-cropland
40 + 5.40 = 45.40 adjusted CSR points