The Iowa Department of Revenue has issued what is called an equalization order that lowers the value of commercial property in Clinton by eight percent. (link to complete statewide orders included)
The order is based on sales. Clinton City Assessor John Moreland said he appealed the order and needed to get three sales thrown out to prove no lowering of value was needed. Moreland said the department agreed to remove two sales, but not the third. He said the orders are based on a sampling of sales.
He also said the multi-family properties were removed from the commercial category which also had an impact on the order.
Moreland said these orders are done every two years by the Department of Revenue. He says they are not rare. Moreland said over the years there have been local equalization orders that have been up and down. He said it’s difficult to use the sample of ten sales out of a thousand properties it’s hard to have a true indicator.
The City Assessor says the impact of local taxing bodies budget or tax rates is not know at this time.
Moreland explained that this eight percent reduction is in addition to the legislative approved lower of commercial property values. The state will be backfilling that tax reduction.
Moreland said that equalization order also increased the ag land values in the city limits by nearly nine percent
It was reported earlier that in the county there was equalization order that increased commercial property by nine percent.
