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 102.3(1)"a," the assessor shall adjust
noncropland. 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 102.3(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 102.3(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 3 (1 -.70) = 5.40 adjusted CSR
points
|
|
Adjusted CSR non-cropland
|
40 + 5.40 = 45.40 adjusted CSR points
|
(2)
Agricultural factor. In
order to determine a productivity value for agricultural buildings and
structures, assessors must make an agricultural adjustment to the market value
of these buildings and structures by developing an "agricultural factor" for
the assessors' jurisdictions. The agricultural factor for each jurisdiction is
the product of the ratio of the productivity and net earning capacity value per
acre as determined under subrule 102.12(1) over the market value of
agricultural land within the assessing jurisdiction. The resulting ratio is
then applied to the actual value of the agricultural buildings and structures
as determined under the Iowa Real Property Appraisal Manual prepared by the
department. The agricultural factor must be applied uniformly to all
agricultural buildings and structures in the assessing jurisdiction. As an
example, if a building's actual value is $500,000 and the agricultural factor
is 30 percent, the productivity value of that building is $150,000. See
H & R Partnership v. Davis County Board of Review, 654
N.W.2d 521 (Iowa 2002). The 2007, 2008, and 2009 average of the market value of
land will be used in determining the agricultural factor for assessment year
2011. A five-year market value average of land for years used to determine the
productivity formula will be used to determine the agricultural factor for
assessment year 2013 and subsequent assessment years.
(3)
Classification. Land
classified as agricultural real estate includes the land beneath any dwelling
and appurtenant structures located on that land and shall be valued by the
assessor pursuant to rule
701-102.3 (421,428,441). An
assessor shall not value a part of the land as agricultural real estate and a
part of the land as if it is residential real estate.
This rule is intended to implement Iowa Code sections
421.17,
428.4 and
441.21.
