Multi-Residential Property Classification

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Multi-Residential Property Classification

Beginning in 2015, as a part of property tax reforms signed in to law, a new property class for assessment will be implemented. This new class is called Multi-Residential and applies to the following properties:

What Qualifies:

  • Mobile home parks
  • Manufactured home communities
  • Land-leased communities
  • Assisted living facilities
  • Property primarily used or intended for human habitation containing three or more separate dwelling units. This includes apartment buildings and dwellings converted to three or more apartments which are classified as commercial.
  • Dual Class Properties: Portions of properties intended for human habitation (and a portion of the land) regardless of the number of units, if the use for human habitation is not the primary use and that is not otherwise classed residential.

What is Excluded:

  • Section 42 Housing
  • Hotels
  • Motels
  • Inns
  • Other dwellings where rooms or dwelling units are typically rented for less than one month.

What Qualifies as "Intended for Human Habitation:"

  • Multi-residential is to be used or intended to be used for human habitation. These would include dwelling units such as:
  • Apartments
  • A group of rooms
  • Single rooms
  • Occupied as separate living quarters
  • If vacant, it is intended for occupancy as separate living quarters where a tenant can live and sleep separately.
  • That portion of a parcel with one or two dwelling units used for human habitation if on the same parcel with commercial / industrial valuation is classified as multi-residential.

Rollback Schedule:

  • Properties classified as multi-residential will receive a rollback that will be gradually phased in to match the rollback percentage applied to properties currently classified as residential
  • The assessed values on properties are taken in conjunction with a rollback percentage and levies to determine your property tax liability.
  • The following formula is used to determine property taxes:

              Assessed Value
               - Exemptions
               ÷ 1000
               x Rollback
               x Levy Rate
               - Credits              
              Property Tax Due
  • The rollbacks applied to multi-residential properties will be phased in over the span of seven (7) years at the following rates with their corresponding years:

    2015
    Taxable value at 86.25% of assessed value.
    2016 Taxable value at 82.50% of assessed value.
    2017 Taxable value at 78.75% of assessed value.
    2018 Taxable value at 75.00% of assessed value.
    2019 Taxable value at 71.25% of assessed value.
    2020 Taxable value at 67.50% of assessed value.
    2021 Taxable value at 63.75% of assessed value.
    2022 Taxable value is determined with the same rollback percentage as residential.

 

If you have questions regarding your property, and if you will be impacted by this change,
please call our office at 515-239-5370 or e-mail us at cityassessorinfo@city.ames.ia.us for assistance.

 

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