By Matt Miller matt@dmcityview.com

Receiving a reduction

New area service helps homeowners protest property assessments

The ever-struggling economy has taken a toll on the nation’s housing market, but homeowners in Iowa have actually seen their homes increase in value in the past two years. As a result, many state county assessors are preparing for a wave of property assessment protests this spring.

“In 2007, there was more than 6,000 property protests, and there are going to be thousands again this year,” said Kevin Huerkamp, a co-partner of Iowa Assessment Advisors (IAA), a new service in Urbandale helping homeowners protest their property assessments. “Taxpayers are getting hurt right now because of so many things happening in the real estate market, but there are things they can do to help financially.”

This spring’s new assessed values, which by law must be updated in odd-number years in Iowa, are used to help determine future property taxes paid by individual homeowners, starting in 2010 and 2011 budget years. Iowa Code, Section 441.37 (Protest of assessment — grounds) allows that any property owner taxpayer who is dissatisfied with his or her property’s assessment may file a protest with his or her county’s board of review. This file must take place on or after April 16, up to and including May 5. While IAA began business March 2, officials say that isn’t a lot of time.

“We haven’t seen a bulk of activity just yet because of a lot of people don’t know what’s really going on right now,” Huerkamp said. “People are busy with work, spring break and taking care of the family. There’s only a short time to fight it, but it’s an opportunity to save some money.”

The rate of property tax is determined after assessors estimate the value of each property. They total the assessed value in each classification of property and report their findings to the county auditor. Next, the state examines total assessed values and equalizes them from county to county to ensure values are comparable among jurisdictions and according to law. Then the state caps how much property owners can be charged under a “rollback” formula that is used in response to inflation.

While many Iowa homeowners have seen the values of their homes increase, signs show that some values are decreasing. A recent report by the Des Moines Area Association of Realtors shows that home values statewide dropped during the last quarter in 2008. It also shows that the average sale price of a home last year in the Des Moines area dropped $27,135 — a decrease of nearly 16 percent from the same month a year ago.

“A property’s assessment value is supposed to reflect what it would sell for on the open market under normal conditions, but last year wasn’t a normal year,” Huerkamp said, noting that IAA currently offers services for properties located in Boone, Dallas, Marshall, Polk, Story, Tama and Warren counties. “But state law require assessors to use comparable sales from 2008 for determining each property’s 2009 assessment.”

For those interested in lowering their 2009 property assessments, IAA will host a workshop on April 25 at the Downtown Marriot, 710 Grand Ave. The workshop begins at 10 a.m., and officials are hoping for as many as 400 people to attend.

“We’re going to share our knowledge about what’s the best way protest property assessments,” Huerkamp said. “No one likes paying taxes, but it’s a necessary evil. There can be a glimmer of hope in this bad economy.” CV

We the People note: The YWCA of Greater Des Moines is accepting nominations for the 2009 Women Achievement Awards, which will be presented June 3 at the Polk County Convention Complex. Deadline for nominations is April 3. Visit www.ywca.org for award criteria and nomination forms.

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