SF 411 (LSB 1126SV (2) 88)

SENATE FILE 411

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO SF 49)

A BILL FOR

An Act relating to assessors and the state appraisal manual of the department of revenue, and including penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 421.17, subsection 17, Code 2019, is amended to read as follows:
   17.  To prepare and issue a state appraisal manual which each county and city assessor shall use in assessing and valuing all classes of property in the state.  The appraisal manual shall include specific guidance on the classification of agricultural property and for determining whether a property satisfies the requirements for a charitable exemption from taxation. The appraisal manual shall be continuously revised and the manual and revisions shall be issued to the county and city assessors in such form and manner as prescribed by the director.
    Sec. 2.  NEW SECTION.  441.51  Failure to comply with the state appraisal manual —— penalties.
   1.  In addition to any other penalty provided by law, if the department of revenue determines that an assessor has failed to substantially comply with the state appraisal manual issued under the authority of section 421.17, subsection 17, the assessor shall be subject to the following penalties:
   a.  For a first violation following the appointment or reappointment of the assessor, a letter of admonishment and warning issued by the department of revenue to the assessor, with a copy being sent to the conference board having authority over the assessor.
   b.  For a second violation within three years of the appointment of an assessor, or in the case of an assessor holding office on the effective date of this Act, within three years of the effective date of this Act, ineligibility for reappointment.
   c.  For a second violation occurring later than three years after appointment or the effective date of this Act, a letter of admonishment and warning as described in paragraph “a”.
   d.  For a third violation after a violation described in paragraph “c”, ineligibility for reappointment.
   2.  The department of revenue may investigate violations of this section on its own motion or pursuant to a complaint.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the state appraisal manual and the usage of the manual by assessors.
   The bill provides that the state appraisal manual shall include specific guidance on the classification of agricultural property and the identification of property that qualifies for a charitable exemption from taxation.
   Current law requires all assessors to use the state appraisal manual. The bill allows the department of revenue to investigate failures to use the appraisal manual either upon complaint or its own motion. An appraiser who fails to substantially comply with the appraisal manual once is subject to a letter of admonishment and warning, which shall also be sent to the conference board having authority over the assessor. An assessor who commits two violations within three years of appointment shall be ineligible for reappointment. An assessor who commits a second violation more than three years after appointment is subject to a letter of admonishment and warning, which shall also be sent to the conference board having authority over the assessor. An assessor who commits a third violation shall be ineligible for reappointment.