Property taxes on residential property are calculated using the following formula:
(Assessed Value × Roll Back - Homestead Credit) × Tax Rate ÷ 1,000
For a house valued at $150,000, property taxes for fiscal year 2018 would be calculated as follows:
(($150,000 × 56.9391%) - $4,850) × $41.87906 ÷ 1,000 = $3,373.72
The formula for commercial property is the same but without the homestead credit. In addition, commercial property has a different roll back percentage than residential does.
For a business valued at $150,000, property taxes for fiscal year 2018 would be calculated as follows:
($150,000 ×90.00%) × $41.87906 ÷ $1,000 = $5,653.67
Of the factors that make up the property tax formula, only the tax rate is controlled locally. The factors in the formula are described below:
Assessed Value: Polk County assesses the value of the property within Ankeny to approximate market value. A re-assessment is applied every other year with the latest re-assessment on January 1, 2015 effective beginning fiscal year 2017.
Roll Back: the roll back is a percentage calculated by the State of Iowa as a means of limiting the overall growth of a property class across the State. The roll back affects residential and commercial property.
Homestead Credit: A property tax credit given to homeowners by the State of Iowa on the first $4,850 of valuation. Other tax credits may also be applicable including military and elderly/low income credits.
Tax Rate: The tax rate as determined by taxing jurisdictions including the City, Polk County, Ankeny Community School District and other jurisdictions. The rates are determined by the locally elected boards but within guidelines as determined by the State of Iowa.
1,000: This number represents how the rate is applied to the valuation. In other words, the tax rate is applied to every $1,000 of valuation or $41.87906 of tax for every $1,000 of valuation.