LOCAL, COUNTY & STATE TAXES

Corporate Income Tax

Iowa is one of only five states that offer corporations 50% deductibility of federal taxes from corporate income. Using the single factor formula corporate income tax is levied only on net income derived from sales conducted with the state. In Iowa, corporate income tax can also be reduced or eliminated by the New Jobs Tax Credit, High Quality Job Creation Program or Enterprise Zone Benefits. There’s also no corporate personal property tax, no sales and use tax on manufacturing machinery and equipment purchases. To learn more visit www.iowalifechanging.com/business.

Property Tax

All property is assessed at 100% of market value. Most property is taxed by more than one taxing authority.

Fairfield Tax Structure Data
Assessed Value of Property $237,104,800
Tax Rate Per $1,000 Assessed Value $42.34
Bonded Indebtedness: City $10,030,000
Bonded Indebtedness: School District $0
Bonded Indebtedness Capacity of City $16,947,299
Future Indebtedness Plans $0
Jefferson County Tax Structure Data
Assessed Value of Property $562,013,308
Tax Rate Per $1,000 Assessed Value $30.02
Bonded Indebtedness: County $450,000
Bonded Indebtedness: School District $0
Bonded Indebtedness Capacity of County $45,172,114
Future Indebtedness Plans $0
Option Sales Tax Tax Rate
State of Iowa (food and prescription drugs exempt) 5.0%
School Local Option Sales Tax 1.0%
Fairfield 1.0%
Total Tax Rate 7.0%

City Tax Abatements

Fairfield offers available three-year property tax abatement for new commercial properties. Improvements eligible for exemption include rehabilitation, renovation or improvements to existing structures that result in an increase in the assessed valuation of the property; additions to existing structures; and new construction on vacant land or land with existing structures when constructed in accordance with an approved zoning permit. Real estate that qualifies includes commercial or industrial property, or property that (when the improvements have been completed) consists of 3 or more separate living quarters with at least 75 percent of the building space used for residential purposes. Excerpted from City of Fairfield Tax Abatement Ordinance No 1001, Sections 3.04.050, 3.04.060, 3.04.070, and 3.04.080

County Tax Abatements

Jefferson County tax abatements are offered by petition to the County Board of Supervisors. To learn more visit http://www.jeffersoncountyiowa.com/supervisors.htm.

Jefferson County Tax Districts

A spreadsheet that breaks down tax levies for each of Jefferson County tax districts can be downloaded.

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