S.F. _____ H.F. _____ DIVISION I 1 INCOME TAXES 2 Section 1. Section 422.25, subsection 1, paragraph b, Code 3 2013, is amended to read as follows: 4 b. The period for examination and determination of the 5 correct amount of tax is unlimited in the case of a false or 6 fraudulent return made with the intent to evade tax or in the 7 case of a failure to file a return. In lieu of the period 8 of limitation for any prior year for which an overpayment of 9 tax or an elimination or reduction of an underpayment of tax 10 due for that prior year results from the carryback to that 11 prior year of a net operating loss or net capital loss, the 12 period is the period of limitation for the taxable year of the 13 net operating loss or net capital loss which results in the 14 carryback. If the tax found due is greater than the amount 15 paid, the department shall compute the amount due, together 16 with interest and penalties as provided in subsection 2 , and 17 shall mail a notice of assessment to the taxpayer and, if 18 applicable, to the taxpayer’s authorized representative of the 19 total, which shall be computed as a sum certain if paid on or 20 before , with interest computed to the last day of the month 21 in which the notice is dated , or on or before the last day of 22 the following month if the notice is dated after the twentieth 23 day of any month. The notice shall also inform the taxpayer 24 of the additional interest and penalty which will be added to 25 the total due if not paid on or before the last day of the 26 applicable month . 27 DIVISION II 28 SALES TAXES 29 Sec. 2. Section 423.37, subsection 2, Code 2013, is amended 30 to read as follows: 31 2. If a return required by this subchapter is not filed, 32 or if a return when filed is incorrect or insufficient and 33 the maker fails to file a corrected or sufficient return 34 within twenty days after the same is required by notice from 35 -1- LSB 1258XD (4) 85 mm/sc 1/ 5

S.F. _____ H.F. _____ the department , the department shall determine the amount of 1 tax due from information as the department may be able to 2 obtain and, if necessary, may estimate the tax on the basis of 3 external indices, such as number of employees of the person 4 concerned, rentals paid by the person, stock on hand, or other 5 factors. The determination may be made using any generally 6 recognized valid and reliable sampling technique, whether or 7 not the person being audited has complete records, as mutually 8 agreed upon by the department and the taxpayer. The department 9 shall give notice of the determination to the person liable 10 for the tax. The determination shall fix the tax unless the 11 person against whom it is assessed shall, within sixty days 12 after the giving of notice of the determination, apply to the 13 director for a hearing or unless the taxpayer contests the 14 determination by paying the tax, interest, and penalty and 15 timely filing a claim for refund. At the hearing, evidence may 16 be offered to support the determination or to prove that it is 17 incorrect. After the hearing the director shall give notice of 18 the decision to the person liable for the tax. 19 DIVISION III 20 ENVIRONMENTAL PROTECTION CHARGE 21 Sec. 3. Section 424.10, subsection 2, paragraph a, Code 22 2013, is amended to read as follows: 23 a. If a return required by this chapter is not filed, or 24 if a return when filed is incorrect or insufficient and the 25 maker fails to file a corrected or sufficient return within 26 twenty days after the return is required by notice from the 27 department , the department shall determine the amount of charge 28 due from information as the department may be able to obtain 29 and, if necessary, may estimate the charge on the basis of 30 external indices or factors. The department shall give notice 31 of the determination to the person liable for the charge. The 32 determination shall fix the charge unless the person against 33 whom it is assessed shall, within sixty days after the date 34 of the notice of the determination, apply to the director for 35 -2- LSB 1258XD (4) 85 mm/sc 2/ 5

S.F. _____ H.F. _____ a hearing or unless the person against whom it is assessed 1 contests the determination by paying the charge, interest, and 2 penalty and timely filing a claim for refund. At the hearing 3 evidence may be offered to support the determination or to 4 prove that it is incorrect. After the hearing the director 5 shall give notice of the decision to the person liable for the 6 charge. 7 DIVISION IV 8 PROPERTY TAX 9 Sec. 4. Section 421.17, subsection 2, Code 2013, is amended 10 by adding the following new paragraph: 11 NEW PARAGRAPH . d. To facilitate uniformity and equalization 12 of assessments throughout the state of Iowa and to facilitate 13 transfers of funds to local governments, the director may 14 use geographic information system technology and may require 15 assessing authorities and local governments to provide 16 information to the department electronically using electronic 17 geographic information system file formats. 18 Sec. 5. Section 441.5, subsection 1, Code 2013, is amended 19 to read as follows: 20 1. For the purpose of examining and certifying candidates 21 for the positions of assessor and deputy assessor, the 22 director of revenue shall prepare and administer a written 23 an examination and provide for an examination process . The 24 examinations shall be administered twice each year in the city 25 of Des Moines. Notification of the time, place, and date 26 of the examinations shall be mailed to each city and county 27 assessor, county auditor and chairperson of each city and 28 county conference board The director shall approve one or more 29 examination locations and shall make a list of the approved 30 locations available to applicants. Each applicant shall select 31 an examination location from the list of approved locations. 32 The director shall notify applicants of the date and time of 33 the examination at least thirty days prior to the date of the 34 examination. 35 -3- LSB 1258XD (4) 85 mm/sc 3/ 5

S.F. _____ H.F. _____ Sec. 6. Section 441.5, subsection 4, Code 2013, is amended 1 to read as follows: 2 4. The director of revenue shall grade the examination 3 taken. The director shall notify , in writing, each applicant 4 of the score attained by the applicant on the examination. An 5 individual who attains a score of seventy percent or greater on 6 the examination is eligible to be certified by the director of 7 revenue as a candidate for any assessor position. Any person 8 who passes the examination and who possesses at least two years 9 of appraisal related experience as determined by the director 10 of revenue shall be granted regular certification and become 11 eligible for appointment to a six-year term as assessor. Any 12 person who passes the examination but who lacks such experience 13 shall be granted temporary certification, and shall be eligible 14 for a provisional appointment as assessor. 15 EXPLANATION 16 This bill relates to the administration of the tax and 17 related laws by the department of revenue. 18 Division I relates to the individual and corporate income 19 tax. The division strikes language in Code section 422.25 20 to eliminate the requirement that notices of assessment 21 issued after the twentieth day of a month include an interest 22 calculation for the next month. By reference, this change 23 applies to the real estate transfer tax in Code chapter 428A. 24 Division II relates to sales and use taxes and, by reference, 25 the monitor vending machine excise tax, motor vehicle fee for 26 new registration, the hotel and motel tax, the local option 27 sales and services tax, the automobile rental excise tax, and 28 the equipment tax. 29 The division strikes language in Code section 423.37 to 30 eliminate the requirement that the department send a notice 31 to filers of applicable tax returns if the return is either 32 incorrect or insufficient. The department would be authorized 33 to determine the amount of tax due and send a notice of 34 assessment to the person liable for the tax. 35 -4- LSB 1258XD (4) 85 mm/sc 4/ 5

S.F. _____ H.F. _____ Division III relates to the environmental protection charge 1 on petroleum diminution. 2 The division strikes language in Code section 422.10 to 3 eliminate the requirement that the department send a notice to 4 filers of environmental protection charge returns if the return 5 is either incorrect or insufficient. The department would be 6 authorized to determine the amount of tax due and send a notice 7 of assessment to the person liable for the tax. 8 Division IV relates to property taxes. 9 The division amends the powers and duties of the director 10 of revenue in Code section 421.17 to allow the director to use 11 geographic information system (GIS) technology to facilitate 12 uniformity and equalization of assessments and to facilitate 13 transfers of funds to local governments. The director may also 14 require assessing authorities and local governments to provide 15 information to the department electronically using GIS file 16 formats. 17 The division amends the procedures related to the 18 examination in Code section 441.5 for assesors and deputy 19 assessors by removing requirements that the director of revenue 20 administer a written examination biannually in the city of Des 21 Moines, that notification of the time and place of examinations 22 be mailed 30 days in advance to each city and county assessor, 23 county auditor, and chairperson of each city and county 24 conference board, and that each applicant be notified in 25 writing of their examination score. The amended language would 26 require that the director prepare an examination and provide 27 for an examination process, approve one or more examination 28 locations and make a list of the approved locations available 29 to applicants, notify applicants 30 days in advance of the 30 date and time of their examination, and notify applicants of 31 their examination score. Applicants would be able to select 32 an examination location from the list of approved locations 33 provided by the director. 34 -5- LSB 1258XD (4) 85 mm/sc 5/ 5