The Cerro Gordo County Board of Supervisors held their “Truth in Taxation” budget hearing on April 1 for reasons of transparency and to make people aware of property taxes, the process, and that they have the right to ask questions and voice any concerns they may have.
County budget director Heather Mathre explained that the tax rate for general and rural property owners will be going down slightly, but with higher assessments to properties in the county the actual tax levy, the amount the county is asking for, will increase. The general tax rate is proposed to decrease from $5.46 to $5.34 per $1000 assessed valuation, while the rural levy is proposed to go down from $3.39 to $3.29 per $1000.
Mathre pointed out that the assessed property valuations across the county increased from $3 billion in Fiscal Year 2023-24 to $3.2 billion in the tax year beginning July 1, 2024. The county tax levy, or the amount they are asking for, will increase a little over $700,000 from $16.5 million to $17.2 million.
However, the actual tax rates, the percentage used to determine how much a taxpayer will pay, are going down because of the new state tax laws in House File 718. “There are growth caps that are allowed. So since our growth went up higher than the 3 percent [allowed] we are required, the state uses the term “ratchet down” our levy rate to limit our tax askings. For our rural and our general levy we’re required to reduce those levy rates,” Mathre explained.
To sum it up Mathre said that despite the drop in the tax rates, the county will be taking in more property tax revenue due to an increase in property valuations. “Our values did increase. We are requesting a few more dollars, but the tax rate is going to change.”
The county is looking to use the additional revenues to address increases in wages and insurance, vehicle and liability insurance, equipment purchases and to add an employee in the Conservation Department.
