Johnson County officials warn of misleading property tax mailers

IOWA CITY — Property owners across Johnson County have received letters detailing expected property tax rates as required by state law, but county and city officials are warning that the letters are not reflective of what taxpayers can expect to pay.

The state requires counties to mail letters using a form that includes an assumption that assessed property values increased 10 percent from the last fiscal year. However, county officials said the average increase of assessed property value in Johnson County ranged from 0.4 percent to 1.2 percent, depending on the type of property.

That means some Johnson County property owners may see an estimated property tax increase of upward of 17 percent, while in actuality most county residents will see increases ranging from 5.4 to 7.1 percent, assuming the proposed rates are approved.

“Johnson County put out more accurate detail specific to our county … And we've been helping people over the phone, because a lot of people have been calling us,” said Johnson County Auditor Julie Persons. “We can give them more specific details and help them understand what their increase is really looking at, it's not the 15 to 17 to 18 percent that people are thinking, because that's what's on the form.”

Persons said the auditor’s office has been directing residents to the Citizen Property Tax Estimation tool on the Iowa Department of Management website, dom.iowa.gov/local-government/citizen-property-tax-guide. Residents also can call the auditor’s office at 319-356-6004 for help understanding the mailed property tax mailer.

“We just want to make sure that people are understanding that we're here to help them if they need it, but we have information online for them, for the people that want it,” said Persons.

The Johnson County proposed countywide property tax levy is $6.73 per $1,000 of taxable valuation, up from $6.43 in the current fiscal year. The additional rural rate remains unchanged at $3.61 per $1,000 of taxable valuation.

A public hearing on the proposed rate is set for March 26.

ICCSD property tax rates to decrease, hearing set for next week

The Iowa City Community School District is proposing a property tax rate of $16.10 per $1,000 of taxable valuation, a decrease from the current rate of $16.818. The district is attributing the proposed decrease to an increase in total property valuation and a number of early retirements in the district. A public hearing on the proposed levy is set for March 25.

The Clear Creek Amana School District is proposing a property tax rate of $17.03 per $1,000 of taxable valuation, up from $17.01 this year.

Johnson County cities set property tax levy public hearings

Residents in urban areas will pay the countywide property tax rate as well as the rates in their respective cities, as well as rates for other taxing bodies, like school districts.

This year the state is raising the residential rollback rate from 46.34 percent to 47.43 percent this fiscal year. This means property tax rates will be applied to a larger portion of a property’s value.

Under Iowa law, cities are required to hold a public hearing on the proposed property tax levy rate and an additional public hearing on the proposed budget before approving it.

Johnson County cities have proposed the following for property tax levies and have set hearings for the following dates:

Comments: megan.woolard@thegazette.com

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