§ 404.5 — Physical review of property by assessor

Iowa § 404.5

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 404: URBAN REVITALIZATION TAX EXEMPTIONS

Text

1. The local assessor shall review each first-year application by making a physical review
of the property, to determine if the improvements made increased the actual value of the
qualified real estate by at least fifteen percent or at least ten percent in the case of real
property assessed as residential property or the applicable percent increase requirement
adopted by the city or county under section 404.2. If the assessor determines that the actual
value of that real estate has increased by at least the requisite percent, the assessor shall
proceed to determine the actual value of the property and certify the valuation determined
pursuant to section 404.3 to the county auditor at the time of transmitting the assessment
rolls. However, if a new structure is erected on land upon which no structure existed at the
start of the new construction, the assessor shall proceed to determine the actual value of the
property and certify the valuation determined pursuant to section 404.3 to the county auditor
at the time of transmitting the assessment rolls. The assessor shall notify the applicant of
the determination, and the assessor’s decision may be appealed to the local board of review
at the times specified in section 441.37. If an application for exemption is denied as a result
of failure to sufficiently increase the value of the real estate as provided in section 404.3, the
owner may file a first annual application in a subsequent year when additional improvements
are made to satisfy requirements of section 404.3, and the provisions of section 404.4 shall
apply. After the tax exemption is granted, the local assessor shall continue to grant the tax
exemption, with periodic physical review by the assessor, for the time period specified in
section 404.3, subsection 1, 2, 3, or 4, or specified in the different schedule if one has been
adopted, under which the exemption was granted. The tax exemptions for the succeeding
years shall be granted without the taxpayer having to file an application for the succeeding
years.
2. For the purposes of this section, the actual value of the property upon which the value
of improvements in the form of rehabilitation or additions to existing structures shall be
determined shall be the lower of either the amount listed on the assessment rolls in the
assessment year in which such improvements are first begun or the price paid by the owner if
the improvements in the form of rehabilitation or additions to existing structures were begun
within one year of the date the property was purchased and the sale was a fair and reasonable
exchange between a willing buyer and a willing seller, neither being under any compulsion
to buy or sell and each being familiar with all the facts relating to the particular property.

Legislative History

[C81, §404.5]