Equalization
In Iowa, residential and commercial property is assessed at 100 percent market value. Therefore, sale prices and assessed
values must stay in sync. If the median assessment to sale price ratio (e.g. assessments divided by sale prices) in any given
area deviates from the statutory 100 percent level by a difference of more than plus or minus 5 percent, the Iowa Department of
Revenue steps in and mandates an across-the-board adjustment to bring things back into compliance. This is called equalization,
and is generally not a good thing because it means all property values are affected, when usually only some are causing the problem.
Sales Ratio
- Result of dividing an assessment by its sale price
Iowa Department of Revenue is responsible for "equalizing"
A process called "equalization" is applied every two years to ensure that property values are comparable among
jurisdictions and according to law.
- Compares the assessor's abstracts to the sales assessment ratio study
- If assessment (by property class) is 5% or more above or below the sales ratio study, assessments will increase or decrease
- There is no sales ratio study for agricultural or industrial property
Equalization is important because it helps maintain equitable assessments among classes of property and among assessing jurisdictions.
This contributes to a more fair distribution of state aid,
such as aid to schools. It also helps distribute the total tax burden within the area.
Important Dates (odd-numbered years)
- August 15 - Department of Revenue issues tentative equalization orders
- October 1 - Final equalization orders issued to the county auditor
- October 9 - 31 Taxpayers may protest the final equalization order to local board of review
- October 10 - November 15 - Local boards of review meet to hear equalization protests
Additional Resources
