dov and nut codes secrets to success - iowa secrets to... · dov and nut codes secrets to success...
TRANSCRIPT
![Page 1: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/1.jpg)
DOV and NUT Codes Secrets to Success
Property Tax Division
February 16, 2016
![Page 2: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/2.jpg)
Today’s Agenda
• DOV Journey • DOV Top 10 List • Problem NUT Codes • DOV Data - Sales Listings and Ratios • Questions
![Page 3: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/3.jpg)
DOV Journey
Paper DOV travels from Recorder to Assessor (428A.1)
Recorder Assessor
Assessors delivers DOVs to IDR
IDR
DOVs due to IDR 60 days after the end of the quarter
427.17 (6) Recorded……………..To IDR January – March…….due June 1 April – June…………..due September 1 July – September…....due December 1 October – December..due March 1
![Page 4: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/4.jpg)
DOV Journey
DOVs are received along with more than 1,000,000
paper tax returns
Assessors deliver 120,000 DOVs to
IDR a year
![Page 5: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/5.jpg)
DOV Journey
IDR Mail Room staff scans DOVs
IDR Data Entry staff keys data from scanned images is entered into
a database
Property Tax staff reviews DOV data
and images.
![Page 6: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/6.jpg)
DOV Top Ten List
![Page 7: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/7.jpg)
DOV Top 10 List
10. Use Black or Blue Ink only o red ink and pencil do not image and cannot be data entered
![Page 8: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/8.jpg)
DOV Top 10 List
9. Date of Instrument is included and correct.
8. Transfer type is indicated and correct (deed or contract).
![Page 9: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/9.jpg)
7. Only mark one Classification
DOV Top 10 List
Exempt or abated properties have a statutory classification – exempt is not a classification.
If Dual Class, only mark the primary classification. A dual class property will be primarily commercial,
industrial, or multiresidential
![Page 10: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/10.jpg)
DOV Top 10 List
6. There must be an assessed value for each parcel.
Even exempt property has a statutory classification and valuation.
![Page 11: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/11.jpg)
DOV Top 10 List
5. Do Land + Building + Dwelling = Total Value?
Land + Building + Dwelling = Total
![Page 12: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/12.jpg)
DOV Top 10 List
4. Improvements on Residential Sales should be in the dwelling section
![Page 13: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/13.jpg)
DOV Top 10 List
3. Occupancy Codes are numeric
Where is the occupancy code list?
![Page 14: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/14.jpg)
IDR website: tax.iowa.gov
![Page 15: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/15.jpg)
Occupancy Codes
![Page 16: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/16.jpg)
2. NUT Codes Must Match
IDR List
DOV Top 10 List
![Page 17: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/17.jpg)
DOV Top 10 List
1. NUTC must be filled out on each DOV
Only enter ONE NUTC
![Page 18: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/18.jpg)
Problem Nut Codes
![Page 19: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/19.jpg)
Remember
Valuations are as of January 1
Normal Deed Sales
![Page 20: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/20.jpg)
Code 9 – Adjoining or Adjacent Properties
• Buyer must own adjoining property prior to the date of sale.
• Purchase of 3 adjoining parcels at the same time does not qualify as adjoining land purchase.
1.
2. 3. Buyer Owns Before Sale
Someone Else owns
Buyer buys 1,2,3 = Abnormal Sale Buyer buys 1,2,3 = Normal Sale
1.
2. 3.
![Page 21: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/21.jpg)
Code 15 - Change in Classification
State the classification changing from and changing to
x
2,800 8,500 11,300
Residential to Commercial
15
January 1 this year
How it will change on January 1 next year
![Page 22: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/22.jpg)
Code 16 Improvements or Demolition after January 1 but before date of sale
x
9,000 145,000 154,000
Fire occurred 5-12-2016 list improvements & their value
List the type and value of the improvement or demolition. This includes fire or flood damage.
16
8/1/16
Why value is lower or higher than sale price
Value Jan 1
![Page 23: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/23.jpg)
Code 25 (Partial Assessment)
New construction or incomplete structure as of January 1.
Applies to new construction but not remodeling When value January 1 does not reflect sale price Foundation only 1/1/2016
Basement finish completed after 1/1/2016 but prior to date of sale
![Page 24: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/24.jpg)
Code 34 - Vacant lot
Use only for a vacant lot with no building/dwelling value at the time of the sale
x
8,500 0 0 8,500
34
![Page 25: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/25.jpg)
Code 35 - Vacant Building
x
Vacant 3 years before sale
Include how long the commercial building has been vacant
35
$ $ $
![Page 26: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/26.jpg)
Code 38 – No Consideration
x
Use when the sale price on line 3 is $0
38
0
0
$ $ $
![Page 27: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/27.jpg)
Code 46 - Sale with consideration paid for real property of $10,000 or less
x
Use if the sale price on line 3 is $10,000 or less
46
12,000 2,000
10,000
4,250 9,840 14,090
![Page 28: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/28.jpg)
Code 50 – Other with Explanation
x
Do not use for Agricultural or Contract Sales
Example: Residential parcel sells with garage only
50
$ $ $
Garage only, no dwelling
Include explanation
![Page 29: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/29.jpg)
DOV Data – Sales Listings and Ratios
![Page 30: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/30.jpg)
Sales Ratio
Assessed Value
Amount Paid for Real Property
• Over 100%: Assessment is higher than Sale Price
• Under 100%: Assessment is lower than Sale Price
divided by
![Page 31: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/31.jpg)
Sales Listings
Each jurisdiction’s Normal Deed DOVs create sales lists for residential, commercial and multiresidential
classifications.
Assessor comments to IDR on use/non-use of sales on listing or missing DOVs.
IDR reviews assessor comments and notifies assessor of decision
![Page 32: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/32.jpg)
Comments
Assessor comments to IDR on use/non-use of sales on listing or missing DOVs.
• Send in comments by email
• Send the 1st full week of month
• Provide all comments for each class
• Use Validation # to identify DOV
![Page 33: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/33.jpg)
Sales Listing
Validation #
Final List posted May 1 by statute Comments must be provided within 45 days
Sort Options :
Jurisdiction Class Deed/Contract
Sales Ratio
![Page 34: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/34.jpg)
Normal Deed Sales Ratios
35.7% 75.3% 92.5% 103.6% 175.1%
After calculating Normal Deed Sales Ratios,
they are listed in an array for each jurisdiction by class
![Page 35: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/35.jpg)
The Median Ratio The Median Ratio is the Mid Point of an array of
Normal Deed Sales Ratios
Median Ratio is one component of the equalization formula
Calculated for each classification Commercial, Residential & Multiresidential
![Page 36: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/36.jpg)
Finding the Median Ratio
35.7% 75.3% 92.5% Median Ratio 103.6% 175.1%
For an odd number of Normal Deed Sales Ratios in the array
Mid Point
![Page 37: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/37.jpg)
Finding the Median Ratio
75.3% 92.5% 103.9% 175.1%
What if there is an even number of Normal Deed Sales Ratios in the array?
First: Add the two in the middle together
196.4 2
Second: Divide by 2
= 98.2% Median Ratio Mid Point
![Page 38: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/38.jpg)
Questions
![Page 40: DOV and NUT Codes Secrets to Success - Iowa Secrets to... · DOV and NUT Codes Secrets to Success Property Tax Division February 16, 2016 . Today’s Agenda • DOV Journey ... keys](https://reader033.vdocuments.mx/reader033/viewer/2022053010/5f0dfe427e708231d43d177d/html5/thumbnails/40.jpg)
THANK YOU!!
40