ISAA
Market Value
Residential, multi-residential, commercial and industrial real property are assessed at 100% market value. Market value of a property is an estimate of the price that it would sell for on the open market on the first day of January of the year of assessment. This is often referred to as the "arms length transaction" or "willing buyer/willing seller" concept. The Assessor must determine the fair market value of real property. To do this, the Assessor generally uses three approaches to value.
 

Market Approach

The first approach is to find properties that are comparable to the subject property and that have recently sold. Local conditions peculiar to the subject property are then considered. In order to adjust for local conditions, the Assessor also uses sales ratio studies to determine the general level of assessment in a community. This method is generally referred to as the MARKET APPROACH and is usually considered the most important in determining the value of residential property. 
 

Cost Approach

The second approach to value is the COST APPROACH, which is an estimate of how many dollars at current labor and material prices it would take to replace a property with one similar to it. In the event the improvement is not new, appropriate amounts of depreciation and obsolescence are deducted from replacement value. Value of the land is added to arrive at an estimate of total property value.
 

Income Approach

The INCOME APPROACH is the third method used if the property produces income. If the property is an income producing property, it could be valued according to its ability to produce income under prudent management; in other words, what another investor would give for a property in order to gain its income. The income approach is the most complex of the three approaches because of the research, information and analysis necessary for an accurate estimate of value. This method requires thorough knowledge of local and national financial conditions, as well as any developmental trends in the area of the subject property being appraised since errors or inaccurate information can seriously affect the final estimate of value.

Agriculturally Classified Property

Unlike the other classifications, Agricultural classified land and outbuildings is assessed on its productivity and net earning capacity value. For the land value, the Assessor considers the productivity and net earning capacity as shown on the most recent CSR (Corn Suitability Rating) maps of the property. Agricultural income as reflected by production, prices, expenses, and various local conditions are taken into account when measuring countywide net income. Each reassessment year uses a different set of crop years in the income calcualyion process. For the 1/1/2017 assessments, crop years 2011 through 2015 are used. 

       
       
       
       
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