(1) Productivity Value: Agricultural land is assessed based on its productivity and use value, not its market value. The Iowa Agricultural Productivity Formula considers factors like acres in production, bushels produced, and average market value of the crop.
(2) Assessed Value: The productivity value is multiplied by the number of acres to determine the total assessed value.
(3) Rollback: The assessed value is adjusted by the rollback percentage. For agricultural properties, let's assume a typical rollback percentage of 73.8575%.
Calculation: The PPEL levy is applied to the assessed value after the rollback. For agricultural property with a total assessed value of $500,000, the taxable value after rollback would be $369,287.50 ($500,000 * 0.738575).
Tax Amount: The PPEL levy would add $247.42 to the annual property tax bill ($369,287.50 / 1,000 * $0.67). When considering the impact of the income surtax, the estimated impact on property tax would reduce the impact on property tax to approximately $195.72.
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