Property Taxes

Determining Entities
The property tax rate for residents in Sioux Center is determined by four entities:
The governing boards and councils of each of these entities determine their own tax rate each year. The four rates are then consolidated to determine the property tax owed by each property owner within the Sioux Center city limits. This consolidated rate is then multiplied by the assessed property valuation of each parcel of property. The assessed valuation of each parcel is determined by the Sioux County assessor’s office.

Residential Property Owners
For residential property owners, the state legislature has instated a rollback in tax bill calculation. This reduces the actual valuation of residential property to approximately 52% before being multiplied by the consolidated tax rate.

Below is an example of the property tax bill calculation for a Sioux Center home valued at $150,000. The tax rates used are from fiscal year 2014.

Residential
Home Value

Rollback
Percentage

Assessed
Valuation

 Tax Rates (per
$1000 Valuation)

Property Taxes
Paid to each Entity

$150,000
x 54.40%
= $81,600
x 14.91587
= $1,217
  To School



x 12.3949
= $1,011
  To City
      x 5.4311
= $443
  To County
      x 0.69099
= $56
  To Community College
    Total Tax Rate
 33.4329
$2,727
  Total Property Taxes Owed

Commercial / Industrial Property Owners
The Iowa state legislature does not give the rollback to commercial and industrial property owners.

Below is an example of the property tax bill calculation for a commercial property valued at $150,000.

Property
Value

Rollback Percentage
Assessed Valuation
Tax Rates (per   $1000 Valuation) 
Property Taxes
Paid to each Entity

    $150,000
x 95% 
 = $142,500
x 14.91587
=  $2,126
To School 
 
 
 
x 12.3949
= $1,766
To City 
 
 
 
x 5.43111
= $774
To County 
 
 
 
x .69099
= $98
To Community College 
 
 
Total Tax Rate 
 33.4329
$4,764
Total Property Taxes Owed   

The taxes are almost double the residential example, even though the properties are of equal value. The rollback formula distorts the property tax system and shifts a greater share of the tax burden onto commercial and industrial property owners.