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1. What is an Equalization Order?

The Iowa Department of Revenue imposes equalization orders in odd-numbered years for each property class, except industrial, in each of the 107 assessing jurisdictions. Equalization is accomplished by increasing or decreasing the aggregate valuations for certain classes of property within assessing jurisdictions by the percentage necessary to adjust the level of assessment to actual value.

2. Why is equalization necessary?

Equalization is important because it helps maintain equitable assessments among classes of property and among assessing jurisdictions. This contributes to a more fair distribution of state aid, such as aid to schools. It also helps to equally distribute the total tax burden within the area.

Equalization helps ensure that all classes of property have been assessed at the value according to state law and that taxation is applied equitably statewide.

A process called "equalization" is applied every two years to ensure that property values are comparable among jurisdictions and complies with Iowa code.

3. How is an Equalization Order determined?

The Iowa Department of Revenue is responsible for “equalizing” assessments every two years. This is a general explanation of the purpose of equalization.

The Department of Revenue compares the assessors’ abstracts to a “sales assessment ratio study” it has completed independently of the assessors. If the assessment (by property class) is 5% or more above or below the sales ratio study, the department increases or decreases the assessment. (There are no sales ratio studies for agricultural or industrial properties.)

4. How will I know if my property receives an Equalization Order?

A notice will be issued in each jurisdiction receiving an equalization order. The notice will be published in the newspaper which is the “official publication” for the jurisdiction. The press release will be issued on or around October 1st in odd numbered years.