House Amendment 1410


PAG LIN




     1  1    Amend House File 848 as follows:
     1  2 #1.  By striking page 2, line 5, through page 5,
     1  3 line 10, and inserting the following:
     1  4    <Sec.    .  Section 260C.17, Code 2005, is amended
     1  5 by striking the section and inserting in lieu thereof
     1  6 the following:
     1  7    260C.17  PREPARATION AND APPROVAL OF BUDGET ==
     1  8 OPERATIONS LEVY.
     1  9    1.  BUDGET APPROVAL.  The board of directors of
     1 10 each merged area shall prepare an annual budget
     1 11 designating the proposed expenditures for operation of
     1 12 the community college.  The board shall further
     1 13 designate the amounts which are to be raised by local
     1 14 taxation and the amounts which are to be raised by
     1 15 other sources of revenue for the operation.  The
     1 16 budget of each merged area shall be submitted to the
     1 17 state board no later than May 1 preceding the next
     1 18 fiscal year for approval.  The state board shall
     1 19 review the proposed budget and shall, prior to June 1,
     1 20 either grant its approval or return the budget without
     1 21 approval with the comments of the state board attached
     1 22 to it.  Any unapproved budget shall be resubmitted to
     1 23 the state board for final approval.
     1 24    2.  BASE LEVEL.  Upon approval of the budget by the
     1 25 state board, the board of directors shall certify the
     1 26 amount to the respective county auditors and the
     1 27 boards of supervisors annually shall levy a tax of
     1 28 twenty and one=fourth cents per thousand dollars of
     1 29 assessed value on taxable property in a merged area
     1 30 for the operation of a community college.
     1 31    3.  OPTIONAL SUPPLEMENTAL AMOUNT.  In addition to
     1 32 the amount of the operations levy under subsection 2,
     1 33 the board of directors of each community college may
     1 34 certify an additional amount for levy by March 15 to
     1 35 the respective county auditors for collection in the
     1 36 subsequent fiscal year, and the boards of supervisors
     1 37 shall levy a tax on all taxable property in the merged
     1 38 area for deposit in the local workforce and economic
     1 39 development fund created in section 260C.18C.  The sum
     1 40 of the moneys collected by a community college under
     1 41 this subsection shall not exceed the sum of sixteen
     1 42 percent of the following for the fiscal year beginning
     1 43 July 1, 2006, thirty=two percent of the following for
     1 44 the fiscal year beginning July 1, 2007, forty=eight
     1 45 percent of the following for the fiscal year beginning
     1 46 July 1, 2008, sixty=four percent of the following for
     1 47 the fiscal year beginning July 1, 2009, and eighty
     1 48 percent of the following for fiscal years beginning on
     1 49 or after July 1, 2010:
     1 50    a.  The community college's budgeted employer
     2  1 contributions under the Federal Insurance
     2  2 Contributions Act, as defined in section 97C.2, for
     2  3 the fiscal year of collection.
     2  4    b.  The community college's budgeted employer
     2  5 contributions to the community college's employees'
     2  6 retirement systems for the fiscal year of collection.
     2  7    c.  The community college's budgeted utility costs
     2  8 for the fiscal year of collection.  As used in this
     2  9 paragraph, "utility costs" includes the cost of
     2 10 electricity, water, waste collection, fuel oil and gas
     2 11 for heating, heat, and air conditioning expenditures.
     2 12 "Utility costs" does not include telephone service, or
     2 13 gas used in laboratories and shops for community
     2 14 college purposes.
     2 15    d.  The moneys the community college would receive
     2 16 from the collection of a property tax of ten cents per
     2 17 thousand dollars of assessed valuation for the fiscal
     2 18 year of collection.
     2 19    For fiscal years beginning on or after July 1,
     2 20 2011, the rate of the levy certified under this
     2 21 subsection shall not exceed the community college's
     2 22 supplemental operations levy cap.  For purposes of
     2 23 this paragraph, "community college's supplemental
     2 24 operations levy cap" means the maximum levy expressed
     2 25 in cents per thousand dollars of assessed valuation
     2 26 which could have been collected by the community
     2 27 college under this subsection for the fiscal year
     2 28 beginning July 1, 2010.
     2 29    Moneys collected under this subsection shall be
     2 30 deposited in the community college's local workforce
     2 31 and economic development fund.
     2 32    4.  TAXES COLLECTED.  Taxes collected pursuant to
     2 33 the levy shall be paid by the respective county
     2 34 treasurers to the treasurer of the merged area as
     2 35 provided in section 331.552, subsection 29.
     2 36    Sec.    .  NEW SECTION.  260C.18C  LOCAL WORKFORCE
     2 37 AND ECONOMIC DEVELOPMENT FUND.
     2 38    1.  LOCAL WORKFORCE AND ECONOMIC DEVELOPMENT FUND.
     2 39 A local workforce and economic development fund is
     2 40 created at each community college.  Moneys shall be
     2 41 deposited and expended from the fund as provided in
     2 42 this section.
     2 43    2.  ALLOWABLE USE.  Moneys deposited in the fund
     2 44 are at the disposal of the community college to be
     2 45 spent only on the following, provided that no more
     2 46 than fifteen percent of the moneys deposited may be
     2 47 used as provided under paragraph "f" and provided that
     2 48 seventy percent of the moneys used as provided in
     2 49 paragraphs "a" through "e" shall be used on projects
     2 50 in the areas of advanced manufacturing, information
     3  1 technology and insurance, and life sciences which
     3  2 include the areas of biotechnology, health care
     3  3 technology, and nursing care technology:
     3  4    a.  Projects for which an agreement with the
     3  5 community college and an employer within the community
     3  6 college's merged area meet all of the requirements of
     3  7 the accelerated career education program under chapter
     3  8 260G.
     3  9    b.  Projects for which an agreement with the
     3 10 community college and a business meet all the
     3 11 requirements of the Iowa jobs training Act under
     3 12 chapter 260F.  However, such projects are not subject
     3 13 to the maximum advance or award limitations contained
     3 14 in section 260F.6, subsection 2, or the allocation
     3 15 limitations contained in section 260F.8, subsection 1.
     3 16    c.  For the development and implementation of
     3 17 career academies that are designed to provide new
     3 18 career preparation opportunities for high school
     3 19 students and that are formally linked with
     3 20 postsecondary career and technical education programs.
     3 21 For purposes of this section, "career academy" means a
     3 22 program of study that combines a minimum of two years
     3 23 of secondary education with an associate degree, or
     3 24 the equivalent, career preparatory program in a
     3 25 nonduplicative, sequential course of study that is
     3 26 standards=based, integrates academic and technical
     3 27 instruction, utilizes work=based and worksite learning
     3 28 where appropriate and available, utilizes an
     3 29 individual career planning process with parent
     3 30 involvement, and leads to an associate degree or
     3 31 postsecondary diploma or certificate in a career field
     3 32 that prepares an individual for entry and advancement
     3 33 in a high=skill and rewarding career field and further
     3 34 education.  The department of economic development, in
     3 35 conjunction with the state board of education and the
     3 36 division of community colleges and workforce
     3 37 preparation of the department of education, shall
     3 38 adopt administrative rules for the development and
     3 39 implementation of such career academies pursuant to
     3 40 section 256.11, subsection 5, paragraph "h", section
     3 41 260C.1, and Title II of Pub. L. No. 105=332, the Carl
     3 42 D. Perkins Vocational and Technical Education Act of
     3 43 1998.
     3 44    d.  Programs and courses that provide vocational
     3 45 and technical training and programs for in=service
     3 46 training and retraining of workers under section
     3 47 260C.1, subsections 2 and 3.
     3 48    e.  Job retention projects under section 260F.9.
     3 49    f.  Student support services, including but not
     3 50 limited to:
     4  1    (1)  Student counseling, including personal
     4  2 counseling, academic counseling, behavioral
     4  3 counseling, and career counseling.
     4  4    (2)  Support groups for high=need students.
     4  5    (3)  Student mentoring.
     4  6    (4)  Orientation to college classes taught in high
     4  7 school which include career planning.
     4  8    (5)  Back=to=college training for nontraditional
     4  9 students.
     4 10    (6)  Utilization of software for assessing the
     4 11 students' work interests, listing current job
     4 12 openings, and projecting future job openings in the
     4 13 state of Iowa to assist students in planning their
     4 14 careers.
     4 15    Sec.    .  Section 260G.3, subsection 2, paragraph
     4 16 e, Code 2005, is amended to read as follows:
     4 17    e.  Moneys from a workforce training and economic
     4 18 development fund created in section 260C.18A or
     4 19 260C.18C, based on the number of program job positions
     4 20 agreed to by the employer to be available under the
     4 21 agreement, the amount of which shall be calculated in
     4 22 the same manner as the program job credits provided
     4 23 for in section 260G.4A.>
     4 24 #2.  Page 5, by inserting before line 11 the
     4 25 following:
     4 26    <Sec.    .  Section 421.1, Code 2005, is amended by
     4 27 adding the following new subsection:
     4 28    NEW SUBSECTION.  4A.  Upon the appeal of a county
     4 29 or city, review the decision of the director of
     4 30 revenue regarding the withholding of a reimbursement
     4 31 payment authorized in section 425.1 to the county or
     4 32 city.  The board may reverse or affirm the decision of
     4 33 the director.
     4 34    Sec.    .  NEW SECTION.  421.1A  PROPERTY
     4 35 ASSESSMENT APPEAL BOARD.
     4 36    1.  A statewide property assessment appeal board is
     4 37 created for the purpose of establishing a consistent,
     4 38 fair, and equitable property assessment appeal
     4 39 process.  The statewide property assessment appeal
     4 40 board is established within the department of revenue
     4 41 for administrative and budgetary purposes.  The
     4 42 board's principal office shall be in the office of the
     4 43 department of revenue in the capital of the state.
     4 44    2.  a.  The property assessment appeal board shall
     4 45 consist of three members appointed to staggered six=
     4 46 year terms, beginning and ending as provided in
     4 47 section 69.19, by the governor and subject to
     4 48 confirmation by the senate.  Subject to confirmation
     4 49 by the senate, the governor shall appoint from the
     4 50 members a chairperson of the board to a two=year term.
     5  1 Vacancies on the board shall be filled for the
     5  2 unexpired portion of the term in the same manner as
     5  3 regular appointments are made.  The term of office for
     5  4 the initial board shall begin January 1, 2007.
     5  5    b.  Each member of the property assessment appeal
     5  6 board shall be qualified by virtue of at least two
     5  7 years' experience in the area of government,
     5  8 corporate, or private practice relating to property
     5  9 appraisal and property tax administration.  One member
     5 10 of the board shall be a certified real estate
     5 11 appraiser or hold a professional appraisal
     5 12 designation, one member shall be an attorney
     5 13 practicing in the area of state and local taxation or
     5 14 property tax appraisals, and one member shall be a
     5 15 professional with experience in the field of
     5 16 accounting or finance and with experience in state and
     5 17 local taxation matters.  No more than two members of
     5 18 the board may be from the same political party as that
     5 19 term is defined in section 43.2.
     5 20    c.  The property assessment appeal board shall
     5 21 organize by appointing an executive secretary who
     5 22 shall take the same oath of office as the members of
     5 23 the board.  The board shall set the salary of the
     5 24 executive secretary within the limits of the pay plan
     5 25 for exempt positions provided for in section 8A.413,
     5 26 subsection 2.  The board may employ additional
     5 27 personnel as it finds necessary.
     5 28    3.  At the election of a property owner or
     5 29 aggrieved taxpayer or an appellant described in
     5 30 section 441.42, the property assessment appeal board
     5 31 shall review any final decision, finding, ruling,
     5 32 determination, or order of a local board of review
     5 33 relating to protests of an assessment, valuation, or
     5 34 application of an equalization order.
     5 35    4.  The property assessment appeal board may do all
     5 36 of the following:
     5 37    a.  Affirm, reverse, or modify a final decision,
     5 38 finding, ruling, determination, or order of a local
     5 39 board of review.
     5 40    b.  Order the payment or refund of property taxes
     5 41 in a matter over which the board has jurisdiction.
     5 42    c.  Grant other relief or issue writs, orders, or
     5 43 directives that the board deems necessary or
     5 44 appropriate in the process of disposing of a matter
     5 45 over which the board has jurisdiction.
     5 46    d.  Subpoena documents and witnesses and administer
     5 47 oaths.
     5 48    e.  Adopt administrative rules pursuant to chapter
     5 49 17A for the administration and implementation of its
     5 50 powers, including rules for practice and procedure for
     6  1 protests filed with the board, the manner in which
     6  2 hearings on appeals of assessments shall be conducted,
     6  3 filing fees to be imposed by the board, and for the
     6  4 determination of the correct assessment of property
     6  5 which is the subject of an appeal.
     6  6    f.  Adopt administrative rules pursuant to chapter
     6  7 17A necessary for the preservation of order and the
     6  8 regulation of proceedings before the board, including
     6  9 forms or notice and the service thereof, which rules
     6 10 shall conform as nearly as possible to those in use in
     6 11 the courts of this state.
     6 12    5.  The property assessment appeal board shall
     6 13 employ a competent attorney to serve as its general
     6 14 counsel, and assistants to the general counsel as it
     6 15 finds necessary for the full and efficient discharge
     6 16 of its duties, notwithstanding section 13.7.  The
     6 17 general counsel is the attorney for, and legal advisor
     6 18 of, the board.  The general counsel or an assistant to
     6 19 the general counsel shall provide the necessary legal
     6 20 advice to the board in all matters and shall represent
     6 21 the board in all actions instituted in a court
     6 22 challenging the validity of a rule or order of the
     6 23 board.  The general counsel shall devote full time to
     6 24 the duties of the office.  During employment as
     6 25 general counsel to the board, the counsel shall not be
     6 26 a member of a political committee, contribute to a
     6 27 political campaign, participate in a political
     6 28 campaign, or be a candidate for partisan political
     6 29 office.
     6 30    6.  The members of the property assessment appeal
     6 31 board shall receive a salary commensurate with the
     6 32 salary of a district judge.  The members of the board,
     6 33 any administrative law judges, and any employees of
     6 34 the board, when required to travel in the discharge of
     6 35 official duties, shall be paid their actual and
     6 36 necessary expenses incurred in the performance of
     6 37 duties.
     6 38    Sec.    .  Section 428.4, unnumbered paragraph 1,
     6 39 Code 2005, is amended to read as follows:
     6 40    Property shall be assessed for taxation each year.
     6 41 Real estate shall be listed and assessed in 1981 and
     6 42 every two years thereafter.  The assessment of real
     6 43 estate shall be the value of the real estate as of
     6 44 January 1 of the year of the assessment.  The year
     6 45 1981 and each odd=numbered year thereafter shall be a
     6 46 reassessment year.  In any year, after the year in
     6 47 which an assessment has been made of all the real
     6 48 estate in an assessing jurisdiction, the assessor
     6 49 shall value and assess or revalue and reassess, as the
     6 50 case may require, any real estate that the assessor
     7  1 finds was incorrectly valued or assessed, or was not
     7  2 listed, valued, and assessed, in the assessment year
     7  3 immediately preceding, also any real estate the
     7  4 assessor finds has changed in value subsequent to
     7  5 January 1 of the preceding real estate assessment
     7  6 year.  However, a percentage increase on a class of
     7  7 property shall not be made in a year not subject to an
     7  8 equalization order unless ordered by the department of
     7  9 revenue.  The assessor shall determine the actual
     7 10 value and compute the taxable value thereof as of
     7 11 January 1 of the year of the revaluation and
     7 12 reassessment.  The assessment shall be completed as
     7 13 specified in section 441.28, but no reduction or
     7 14 increase in actual value shall be made for prior
     7 15 years.  If an assessor makes a change in the valuation
     7 16 of the real estate as provided for, sections 441.23,
     7 17 441.37, 441.37A, 441.38 and 441.39 apply.
     7 18    Sec.    .  Section 441.19, subsection 4, Code 2005,
     7 19 is amended to read as follows:
     7 20    4.  The supplemental returns herein provided for in
     7 21 this section shall be preserved in the same manner as
     7 22 assessment rolls, but shall be confidential to the
     7 23 assessor, board of review, property assessment appeal
     7 24 board, or director of revenue, and shall not be open
     7 25 to public inspection, but any final assessment roll as
     7 26 made out by the assessor shall be a public record,
     7 27 provided that such supplemental return shall be
     7 28 available to counsel of either the person making the
     7 29 return or of the public, in case any appeal is taken
     7 30 to the board of review, to the property assessment
     7 31 appeal board, or to the court.
     7 32    Sec.    .  Section 441.21, subsection 1, Code 2005,
     7 33 is amended by adding the following new paragraphs:
     7 34    NEW PARAGRAPH.  h.  The assessor shall determine
     7 35 the value of real property in accordance with rules
     7 36 adopted by the department of revenue and in accordance
     7 37 with forms and guidelines contained in the real
     7 38 property appraisal manual prepared by the department
     7 39 as updated from time to time.  Such rules, forms, and
     7 40 guidelines shall not be inconsistent with or change
     7 41 the means, as provided in this section, of determining
     7 42 the actual, market, taxable, and assessed values.  If
     7 43 the director of revenue determines that an assessor
     7 44 has willfully disregarded the rules of the department
     7 45 relating to valuation of property or has willfully
     7 46 disregarded the forms and guidelines contained in the
     7 47 real property appraisal manual, the department shall
     7 48 take steps to withhold the reimbursement payment
     7 49 authorized in section 425.1 to the county or city, as
     7 50 applicable, until the director of revenue determines
     8  1 that the assessor is in compliance.  A county or city
     8  2 for which such funds have been withheld may appeal the
     8  3 action of the department to the state board of tax
     8  4 review.  The department shall adopt rules relating to
     8  5 application of this paragraph.
     8  6    NEW PARAGRAPH.  i.  If the assessor wishes to use
     8  7 any manuals, guidelines, or forms other than those
     8  8 prescribed by the department of revenue, the assessor
     8  9 shall first receive permission from the director of
     8 10 revenue.
     8 11    Sec.    .  Section 441.21, subsection 2, Code 2005,
     8 12 is amended to read as follows:
     8 13    2.  In the event market value of the property being
     8 14 assessed cannot be readily established in the
     8 15 foregoing manner, then the assessor may determine the
     8 16 value of the property using the other uniform and
     8 17 recognized appraisal methods including its productive
     8 18 and earning capacity, if any, industrial conditions,
     8 19 its cost, physical and functional depreciation and
     8 20 obsolescence and replacement cost, and all other
     8 21 factors which would assist in determining the fair and
     8 22 reasonable market value of the property but the actual
     8 23 value shall not be determined by use of only one such
     8 24 factor.  The following shall not be taken into
     8 25 consideration:  Special value or use value of the
     8 26 property to its present owner, and the good will or
     8 27 value of a business which uses the property as
     8 28 distinguished from the value of the property as
     8 29 property.  However, in assessing property that is
     8 30 rented or leased to low=income individuals and
     8 31 families as authorized by section 42 of the Internal
     8 32 Revenue Code, as amended, and which section limits the
     8 33 amount that the individual or family pays for the
     8 34 rental or lease of units in the property, the assessor
     8 35 shall use the productive and earning capacity from the
     8 36 actual rents received as a method of appraisal and
     8 37 shall take into account the extent to which that use
     8 38 and limitation reduces the market value of the
     8 39 property.  The assessor shall not consider any tax
     8 40 credit equity or other subsidized financing as income
     8 41 provided to the property in determining the assessed
     8 42 value.  The property owner shall notify the assessor
     8 43 when property is withdrawn from section 42 eligibility
     8 44 under the Internal Revenue Code.  The property shall
     8 45 not be subject to section 42 assessment procedures for
     8 46 the assessment year for which section 42 eligibility
     8 47 is withdrawn.  This notification must be provided to
     8 48 the assessor no later than March 1 of the assessment
     8 49 year or the owner will be subject to a penalty of five
     8 50 hundred dollars for that assessment year.  The penalty
     9  1 shall be collected at the same time and in the same
     9  2 manner as regular property taxes.  Upon adoption of
     9  3 uniform rules by the revenue department of revenue or
     9  4 succeeding authority covering assessments and
     9  5 valuations of such properties, said the valuation on
     9  6 such properties shall be determined in accordance
     9  7 therewith with such rules and in accordance with forms
     9  8 and guidelines contained in the real property
     9  9 appraisal manual prepared by the department as updated
     9 10 from time to time for assessment purposes to assure
     9 11 uniformity, but such rules, forms, and guidelines
     9 12 shall not be inconsistent with or change the foregoing
     9 13 means of determining the actual, market, taxable and
     9 14 assessed values.
     9 15    Sec.    .  Section 441.21, subsections 4 and 5,
     9 16 Code 2005, are amended to read as follows:
     9 17    4.  For valuations established as of January 1,
     9 18 1979, the percentage of actual value at which
     9 19 agricultural and residential property shall be
     9 20 assessed shall be the quotient of the dividend and
     9 21 divisor as defined in this section.  The dividend for
     9 22 each class of property shall be the dividend as
     9 23 determined for each class of property for valuations
     9 24 established as of January 1, 1978, adjusted by the
     9 25 product obtained by multiplying the percentage
     9 26 determined for that year by the amount of any
     9 27 additions or deletions to actual value, excluding
     9 28 those resulting from the revaluation of existing
     9 29 properties, as reported by the assessors on the
     9 30 abstracts of assessment for 1978, plus six percent of
     9 31 the amount so determined.  However, if the difference
     9 32 between the dividend so determined for either class of
     9 33 property and the dividend for that class of property
     9 34 for valuations established as of January 1, 1978,
     9 35 adjusted by the product obtained by multiplying the
     9 36 percentage determined for that year by the amount of
     9 37 any additions or deletions to actual value, excluding
     9 38 those resulting from the revaluation of existing
     9 39 properties, as reported by the assessors on the
     9 40 abstracts of assessment for 1978, is less than six
     9 41 percent, the 1979 dividend for the other class of
     9 42 property shall be the dividend as determined for that
     9 43 class of property for valuations established as of
     9 44 January 1, 1978, adjusted by the product obtained by
     9 45 multiplying the percentage determined for that year by
     9 46 the amount of any additions or deletions to actual
     9 47 value, excluding those resulting from the revaluation
     9 48 of existing properties, as reported by the assessors
     9 49 on the abstracts of assessment for 1978, plus a
     9 50 percentage of the amount so determined which is equal
    10  1 to the percentage by which the dividend as determined
    10  2 for the other class of property for valuations
    10  3 established as of January 1, 1978, adjusted by the
    10  4 product obtained by multiplying the percentage
    10  5 determined for that year by the amount of any
    10  6 additions or deletions to actual value, excluding
    10  7 those resulting from the revaluation of existing
    10  8 properties, as reported by the assessors on the
    10  9 abstracts of assessment for 1978, is increased in
    10 10 arriving at the 1979 dividend for the other class of
    10 11 property.  The divisor for each class of property
    10 12 shall be the total actual value of all such property
    10 13 in the state in the preceding year, as reported by the
    10 14 assessors on the abstracts of assessment submitted for
    10 15 1978, plus the amount of value added to said total
    10 16 actual value by the revaluation of existing properties
    10 17 in 1979 as equalized by the director of revenue
    10 18 pursuant to section 441.49.  The director shall
    10 19 utilize information reported on abstracts of
    10 20 assessment submitted pursuant to section 441.45 in
    10 21 determining such percentage.  For valuations
    10 22 established as of January 1, 1980, and each year
    10 23 thereafter, the percentage of actual value as
    10 24 equalized by the director of revenue as provided in
    10 25 section 441.49 at which agricultural and residential
    10 26 property shall be assessed shall be calculated in
    10 27 accordance with the methods provided herein including
    10 28 the limitation of increases in agricultural and
    10 29 residential assessed values to the percentage increase
    10 30 of the other class of property if the other class
    10 31 increases less than the allowable limit adjusted to
    10 32 include the applicable and current values as equalized
    10 33 by the director of revenue in this subsection, except
    10 34 that any references to six percent in this subsection
    10 35 shall be four percent.  For valuations established as
    10 36 of January 1, 2005, and each year thereafter, the
    10 37 percentage of actual value as equalized by the
    10 38 director of revenue as provided in section 441.49 at
    10 39 which agricultural and residential property shall be
    10 40 assessed shall be calculated in accordance with the
    10 41 methods provided in this subsection and subsection 5A,
    10 42 except that any references to six percent in this
    10 43 subsection shall be four percent.
    10 44    5.  For valuations established as of January 1,
    10 45 1979, commercial property and industrial property,
    10 46 excluding properties referred to in section 427A.1,
    10 47 subsection 7, shall be assessed as a percentage of the
    10 48 actual value of each class of property.  The
    10 49 percentage shall be determined for each class of
    10 50 property by the director of revenue for the state in
    11  1 accordance with the provisions of this section.  For
    11  2 valuations established as of January 1, 1979, the
    11  3 percentage shall be the quotient of the dividend and
    11  4 divisor as defined in this section.  The dividend for
    11  5 each class of property shall be the total actual
    11  6 valuation for each class of property established for
    11  7 1978, plus six percent of the amount so determined.
    11  8 The divisor for each class of property shall be the
    11  9 valuation for each class of property established for
    11 10 1978, as reported by the assessors on the abstracts of
    11 11 assessment for 1978, plus the amount of value added to
    11 12 the total actual value by the revaluation of existing
    11 13 properties in 1979 as equalized by the director of
    11 14 revenue pursuant to section 441.49.  For valuations
    11 15 established as of January 1, 1979, property valued by
    11 16 the department of revenue pursuant to chapters 428,
    11 17 433, 437, and 438 shall be considered as one class of
    11 18 property and shall be assessed as a percentage of its
    11 19 actual value.  The percentage shall be determined by
    11 20 the director of revenue in accordance with the
    11 21 provisions of this section.  For valuations
    11 22 established as of January 1, 1979, the percentage
    11 23 shall be the quotient of the dividend and divisor as
    11 24 defined in this section.  The dividend shall be the
    11 25 total actual valuation established for 1978 by the
    11 26 department of revenue, plus ten percent of the amount
    11 27 so determined.  The divisor for property valued by the
    11 28 department of revenue pursuant to chapters 428, 433,
    11 29 437, and 438 shall be the valuation established for
    11 30 1978, plus the amount of value added to the total
    11 31 actual value by the revaluation of the property by the
    11 32 department of revenue as of January 1, 1979.  For
    11 33 valuations established as of January 1, 1980,
    11 34 commercial property and industrial property, excluding
    11 35 properties referred to in section 427A.1, subsection
    11 36 7, shall be assessed at a percentage of the actual
    11 37 value of each class of property.  The percentage shall
    11 38 be determined for each class of property by the
    11 39 director of revenue for the state in accordance with
    11 40 the provisions of this section.  For valuations
    11 41 established as of January 1, 1980, the percentage
    11 42 shall be the quotient of the dividend and divisor as
    11 43 defined in this section.  The dividend for each class
    11 44 of property shall be the dividend as determined for
    11 45 each class of property for valuations established as
    11 46 of January 1, 1979, adjusted by the product obtained
    11 47 by multiplying the percentage determined for that year
    11 48 by the amount of any additions or deletions to actual
    11 49 value, excluding those resulting from the revaluation
    11 50 of existing properties, as reported by the assessors
    12  1 on the abstracts of assessment for 1979, plus four
    12  2 percent of the amount so determined.  The divisor for
    12  3 each class of property shall be the total actual value
    12  4 of all such property in 1979, as equalized by the
    12  5 director of revenue pursuant to section 441.49, plus
    12  6 the amount of value added to the total actual value by
    12  7 the revaluation of existing properties in 1980.  The
    12  8 director shall utilize information reported on the
    12  9 abstracts of assessment submitted pursuant to section
    12 10 441.45 in determining such percentage.  For valuations
    12 11 established as of January 1, 1980, property valued by
    12 12 the department of revenue pursuant to chapters 428,
    12 13 433, 437, and 438 shall be assessed at a percentage of
    12 14 its actual value.  The percentage shall be determined
    12 15 by the director of revenue in accordance with the
    12 16 provisions of this section.  For valuations
    12 17 established as of January 1, 1980, the percentage
    12 18 shall be the quotient of the dividend and divisor as
    12 19 defined in this section.  The dividend shall be the
    12 20 total actual valuation established for 1979 by the
    12 21 department of revenue, plus eight percent of the
    12 22 amount so determined.  The divisor for property valued
    12 23 by the department of revenue pursuant to chapters 428,
    12 24 433, 437, and 438 shall be the valuation established
    12 25 for 1979, plus the amount of value added to the total
    12 26 actual value by the revaluation of the property by the
    12 27 department of revenue as of January 1, 1980.  For
    12 28 valuations established as of January 1, 1981, and each
    12 29 year thereafter, the percentage of actual value as
    12 30 equalized by the director of revenue as provided in
    12 31 section 441.49 at which commercial property and
    12 32 industrial property, excluding properties referred to
    12 33 in section 427A.1, subsection 7, shall be assessed
    12 34 shall be calculated in accordance with the methods
    12 35 provided herein in this subsection, except that any
    12 36 references to six percent in this subsection shall be
    12 37 four percent.  For valuations established as of
    12 38 January 1, 1981, and each year thereafter, the
    12 39 percentage of actual value at which property valued by
    12 40 the department of revenue pursuant to chapters 428,
    12 41 433, 437, and 438 shall be assessed shall be
    12 42 calculated in accordance with the methods provided
    12 43 herein, except that any references to ten percent in
    12 44 this subsection shall be eight percent.  Beginning
    12 45 with valuations established as of January 1, 1979, and
    12 46 each year thereafter, property valued by the
    12 47 department of revenue pursuant to chapter 434 shall
    12 48 also be assessed at a percentage of its actual value
    12 49 which percentage shall be equal to the percentage
    12 50 determined by the director of revenue for commercial
    13  1 property, industrial property, or property valued by
    13  2 the department of revenue pursuant to chapters 428,
    13  3 433, 437, and 438, whichever is lowest.  For
    13  4 valuations established as of January 1, 2005, and each
    13  5 year thereafter, the percentage of actual value as
    13  6 equalized by the director of revenue as provided in
    13  7 section 441.49 at which commercial and industrial
    13  8 property shall be assessed shall be calculated in
    13  9 accordance with the methods provided in this
    13 10 subsection and subsection 5A, except that any
    13 11 references to six percent in this subsection shall be
    13 12 four percent.
    13 13    Sec.    .  Section 441.21, Code 2005, is amended by
    13 14 adding the following new subsection:
    13 15    NEW SUBSECTION.  5A.  Notwithstanding the
    13 16 limitation of increases in subsection 4 and the
    13 17 limitation of increases for commercial and industrial
    13 18 property in subsection 5, for valuations established
    13 19 as of January 1, 2005, and each year thereafter, for
    13 20 residential, agricultural, commercial, and industrial
    13 21 property, the assessed values of these four classes of
    13 22 property shall be limited to the percentage increase
    13 23 of that class of property that is the lowest
    13 24 percentage increase under the allowable limit adjusted
    13 25 to include the applicable and current values as
    13 26 equalized by the director of revenue.
    13 27    Sec.    .  Section 441.28, Code 2005, is amended to
    13 28 read as follows:
    13 29    441.28  ASSESSMENT ROLLS == CHANGE == NOTICE TO
    13 30 TAXPAYER.
    13 31    The assessment shall be completed not later than
    13 32 April 15 each year.  If the assessor makes any change
    13 33 in an assessment after it has been entered on the
    13 34 assessor's rolls, the assessor shall note on said the
    13 35 roll, together with the original assessment, the new
    13 36 assessment and the reason for the change, together
    13 37 with the assessor's signature and the date of the
    13 38 change.  Provided, however, in the event the assessor
    13 39 increases any assessment the assessor shall give
    13 40 notice of the increase in writing thereof to the
    13 41 taxpayer by mail prior to the meeting of the board of
    13 42 review postmarked no later than April 15.  No changes
    13 43 shall be made on the assessment rolls after April 15
    13 44 except by order of the board of review or of the
    13 45 property assessment appeal board, or by decree of
    13 46 court.
    13 47    Sec.    .  Section 441.35, unnumbered paragraph 2,
    13 48 Code 2005, is amended to read as follows:
    13 49    In any year after the year in which an assessment
    13 50 has been made of all of the real estate in any taxing
    14  1 district, it shall be the duty of the board of review
    14  2 to shall meet as provided in section 441.33, and where
    14  3 it the board finds the same has changed in value, to
    14  4 the board shall revalue and reassess any part or all
    14  5 of the real estate contained in such taxing district,
    14  6 and in such case, it the board shall determine the
    14  7 actual value as of January 1 of the year of the
    14  8 revaluation and reassessment and compute the taxable
    14  9 value thereof, and any.  Any aggrieved taxpayer may
    14 10 petition for a revaluation of the taxpayer's property,
    14 11 but no reduction or increase shall be made for prior
    14 12 years.  If the assessment of any such property is
    14 13 raised, or any property is added to the tax list by
    14 14 the board, the clerk shall give notice in the manner
    14 15 provided in section 441.36, provided, however, that.
    14 16 However, if the assessment of all property in any
    14 17 taxing district is raised, the board may instruct the
    14 18 clerk to give immediate notice by one publication in
    14 19 one of the official newspapers located in the taxing
    14 20 district, and such published notice shall take the
    14 21 place of the mailed notice provided for in section
    14 22 441.36, but all other provisions of said that section
    14 23 shall apply.  The decision of the board as to the
    14 24 foregoing matters shall be subject to appeal to the
    14 25 property assessment appeal board within the same time
    14 26 and in the same manner as provided in section 441.37A
    14 27 and to the district court within the same time and in
    14 28 the same manner as provided in section 441.38.
    14 29    Sec.    .  NEW SECTION.  441.37A  APPEAL OF PROTEST
    14 30 TO PROPERTY ASSESSMENT APPEAL BOARD.
    14 31    1.  For the assessment year beginning January 1,
    14 32 2007, and all subsequent assessment years, appeals may
    14 33 be taken from the action of the board of review with
    14 34 reference to protests of assessment, valuation, or
    14 35 application of an equalization order to the property
    14 36 assessment appeal board created in section 421.1A.
    14 37 However, a property owner or aggrieved taxpayer or an
    14 38 appellant described in section 441.42 may bypass the
    14 39 property assessment appeal board and appeal the
    14 40 decision of the local board of review to the district
    14 41 court pursuant to section 441.38.  For an appeal to
    14 42 the property assessment appeal board to be valid,
    14 43 written notice must be filed by the party appealing
    14 44 the decision with the executive secretary of the
    14 45 property assessment appeal board within twenty days
    14 46 after the date the board of review's letter of
    14 47 disposition of the appeal is postmarked to the party
    14 48 making the protest.  The written notice of appeal
    14 49 shall include a petition setting forth the basis of
    14 50 the appeal and the relief sought.  No new grounds in
    15  1 addition to those set out in the protest to the local
    15  2 board of review as provided in section 441.37 can be
    15  3 pleaded, but additional evidence to sustain those
    15  4 grounds may be introduced.  The assessor shall have
    15  5 the same right to appeal to the assessment appeal
    15  6 board as an individual taxpayer, public body, or other
    15  7 public officer as provided in section 441.42.
    15  8    Filing of the written notice of appeal and petition
    15  9 with the executive secretary of the property
    15 10 assessment appeal board shall preserve all rights of
    15 11 appeal of the appellant, except as otherwise provided
    15 12 in subsection 2.  A copy of the appellant's written
    15 13 notice of appeal and petition shall be mailed by the
    15 14 executive secretary of the property assessment appeal
    15 15 board to the local board of review whose decision is
    15 16 being appealed.  In all cases where a change in
    15 17 assessed valuation of one hundred thousand dollars or
    15 18 more is petitioned for, the local board of review
    15 19 shall mail a copy of the written notice of appeal and
    15 20 petition to all affected taxing districts as shown on
    15 21 the last available tax list.
    15 22    2.  A party to the appeal may request a hearing or
    15 23 the appeal may proceed without a hearing.  If a
    15 24 hearing is requested, the appellant and the local
    15 25 board of review from which the appeal is taken shall
    15 26 be given at least thirty days' written notice by the
    15 27 property assessment appeal board of the date the
    15 28 appeal shall be heard and the local board of review
    15 29 may be present and participate at such hearing.
    15 30 Notice to all affected taxing districts shall be
    15 31 deemed to have been given when written notice is
    15 32 provided to the local board of review.  Failure by the
    15 33 appellant to appear at the property assessment appeal
    15 34 board hearing shall be grounds for dismissal of the
    15 35 appeal unless a continuance is granted to the
    15 36 appellant.  If an appeal is dismissed for failure to
    15 37 appear, the property assessment appeal board shall
    15 38 have no jurisdiction to consider any subsequent appeal
    15 39 on the appellant's protest.
    15 40    An appeal may be considered by less than a majority
    15 41 of the members of the board, and the chairperson of
    15 42 the board may assign members to consider appeals.
    15 43 Appeals to the property assessment appeal board may
    15 44 also be considered by an administrative law judge
    15 45 assigned by the division of administrative hearings of
    15 46 the department of inspections and appeals in
    15 47 accordance with section 10A.801.  If a hearing is
    15 48 requested, it shall be open to the public and shall be
    15 49 conducted in accordance with the rules of practice and
    15 50 procedure adopted by the board.  However, any
    16  1 deliberation of the officer considering the appeal in
    16  2 reaching a decision on any appeal shall be
    16  3 confidential.  The property assessment appeal board,
    16  4 or any member of the board, or an administrative law
    16  5 judge may require the production of any books,
    16  6 records, papers, or documents as evidence in any
    16  7 matter pending before the board that may be material,
    16  8 relevant, or necessary for the making of a just
    16  9 decision.  Any books, records, papers, or documents
    16 10 produced as evidence shall become part of the record
    16 11 of the appeal.  Any testimony given relating to the
    16 12 appeal shall be transcribed and made a part of the
    16 13 record of the appeal.
    16 14    3.  a.  The officer considering the appeal shall
    16 15 determine anew all questions arising before the local
    16 16 board of review which relate to the liability of the
    16 17 property to assessment or the amount thereof.  All of
    16 18 the evidence shall be considered and there shall be no
    16 19 presumption as to the correctness of the valuation of
    16 20 assessment appealed from.  The property assessment
    16 21 appeal board shall make a decision in each appeal
    16 22 filed with the board.  If the appeal is considered by
    16 23 less than a majority of the board or by an
    16 24 administrative law judge, the determination made by
    16 25 that person shall be forwarded to the full board for
    16 26 approval, rejection, or modification.  If the initial
    16 27 determination is rejected by the board, it shall be
    16 28 returned for reconsideration to the board member or
    16 29 administrative law judge making the initial
    16 30 determination.  Any deliberation of the board
    16 31 regarding an initial determination shall be
    16 32 confidential.
    16 33    b.  The decision of the board shall be considered
    16 34 the final agency action for purposes of further
    16 35 appeal, except as otherwise provided in section
    16 36 441.49.  The decision shall be final unless appealed
    16 37 to district court as provided in section 441.38.  The
    16 38 levy of taxes on any assessment appealed to the board
    16 39 shall not be delayed by any proceeding before the
    16 40 board, and if the assessment appealed from is reduced
    16 41 by the decision of the board, any taxes levied upon
    16 42 that portion of the assessment reduced shall be abated
    16 43 or, if already paid, shall be refunded.  If the
    16 44 subject of an appeal is the application of an
    16 45 equalization order, the property assessment appeal
    16 46 board shall not order a reduction in assessment
    16 47 greater than the amount that the assessment was
    16 48 increased due to application of the equalization
    16 49 order.  Each party to the appeal shall be responsible
    16 50 for the costs of the appeal incurred by that party.
    17  1    Sec.    .  Section 441.38, Code 2005, is amended to
    17  2 read as follows:
    17  3    441.38  APPEAL TO DISTRICT COURT.
    17  4    1.  Appeals may be taken from the action of the
    17  5 local board of review with reference to protests of
    17  6 assessment, to the district court of the county in
    17  7 which the board holds its sessions within twenty days
    17  8 after its adjournment or May 31, whichever date is
    17  9 later.  Appeals may be taken from the action of the
    17 10 property assessment appeal board to the district court
    17 11 of the county where the property which is the subject
    17 12 of the appeal is located within twenty days after the
    17 13 letter of disposition of the appeal by the property
    17 14 assessment appeal board is postmarked to the
    17 15 appellant.  No new grounds in addition to those set
    17 16 out in the protest to the local board of review as
    17 17 provided in section 441.37, or in addition to those
    17 18 set out in the appeal to the property assessment
    17 19 appeal board, if applicable, can be pleaded, but
    17 20 additional evidence to sustain those grounds may be
    17 21 introduced.  The assessor shall have the same right to
    17 22 appeal and in the same manner as an individual
    17 23 taxpayer, public body or other public officer as
    17 24 provided in section 441.42.  Appeals shall be taken by
    17 25 filing a written notice of appeal with the clerk of
    17 26 district court.  Filing of the written notice of
    17 27 appeal shall preserve all rights of appeal of the
    17 28 appellant.
    17 29    2.  Notice of appeal shall be served as an original
    17 30 notice on the chairperson, presiding officer, or clerk
    17 31 of the board of review, and on the executive secretary
    17 32 of the property assessment appeal board, if
    17 33 applicable, after the filing of notice under
    17 34 subsection 1 with the clerk of district court.
    17 35    Sec.    .  Section 441.39, Code 2005, is amended to
    17 36 read as follows:
    17 37    441.39  TRIAL ON APPEAL.
    17 38    The If the appeal is from a decision of the local
    17 39 board of review, the court shall hear the appeal in
    17 40 equity and determine anew all questions arising before
    17 41 the board which relate to the liability of the
    17 42 property to assessment or the amount thereof.  The
    17 43 court shall consider all of the evidence and there
    17 44 shall be no presumption as to the correctness of the
    17 45 valuation of assessment appealed from.  If the appeal
    17 46 is from a decision of the property assessment appeal
    17 47 board, the court's review shall be limited to the
    17 48 correction of errors at law.  Its decision shall be
    17 49 certified by the clerk of the court to the county
    17 50 auditor, and the assessor, who shall correct the
    18  1 assessment books accordingly.
    18  2    Sec.    .  Section 441.43, Code 2005, is amended to
    18  3 read as follows:
    18  4    441.43  POWER OF COURT.
    18  5    Upon trial of any appeal from the action of the
    18  6 board of review or of the property assessment appeal
    18  7 board fixing the amount of assessment upon any
    18  8 property concerning which complaint is made, the court
    18  9 may increase, decrease, or affirm the amount of the
    18 10 assessment appealed from.
    18 11    Sec.    .  Section 441.49, unnumbered paragraph 5,
    18 12 Code 2005, is amended to read as follows:
    18 13    The local board of review shall reconvene in
    18 14 special session from October 15 to November 15 for the
    18 15 purpose of hearing the protests of affected property
    18 16 owners or taxpayers within the jurisdiction of the
    18 17 board whose valuation of property if adjusted pursuant
    18 18 to the equalization order issued by the director of
    18 19 revenue will result in a greater value than permitted
    18 20 under section 441.21.  The board of review shall
    18 21 accept protests only during the first ten days
    18 22 following the date the local board of review
    18 23 reconvenes.  The board of review shall limit its
    18 24 review to only the timely filed protests.  The board
    18 25 of review may adjust all or a part of the percentage
    18 26 increase ordered by the director of revenue by
    18 27 adjusting the actual value of the property under
    18 28 protest to one hundred percent of actual value.  Any
    18 29 adjustment so determined by the board of review shall
    18 30 not exceed the percentage increase provided for in the
    18 31 director's equalization order.  The determination of
    18 32 the board of review on filed protests is final,
    18 33 subject to appeal to the property assessment appeal
    18 34 board.  A final decision by the local board of review,
    18 35 or the property assessment appeal board, if the local
    18 36 board's decision is appealed, is subject to review by
    18 37 the director of revenue for the purpose of determining
    18 38 whether the board's actions substantially altered the
    18 39 equalization order.  In making the review, the
    18 40 director has all the powers provided in chapter 421,
    18 41 and in exercising the powers the director is not
    18 42 subject to chapter 17A.  Not later than fifteen days
    18 43 following the adjournment of the board, the board of
    18 44 review shall submit to the director of revenue, on
    18 45 forms prescribed by the director, a report of all
    18 46 actions taken by the board of review during this
    18 47 session.
    18 48    Sec.    .  Section 445.60, Code 2005, is amended to
    18 49 read as follows:
    18 50    445.60  REFUNDING ERRONEOUS TAX.
    19  1    The board of supervisors shall direct the county
    19  2 treasurer to refund to the taxpayer any tax or portion
    19  3 of a tax found to have been erroneously or illegally
    19  4 paid, with all interest, fees, and costs actually
    19  5 paid.  A refund shall not be ordered or made unless a
    19  6 claim for refund is presented to the board within two
    19  7 years of the date the tax was due, or if appealed to
    19  8 the board of review, the property assessment appeal
    19  9 board, the state board of tax review, or district
    19 10 court, within two years of the final decision.>
    19 11 #3.  Page 5, by striking lines 11 through 13 and
    19 12 inserting the following:
    19 13    <Sec. ___.  EFFECTIVE AND APPLICABILITY DATES.
    19 14    1.  The sections of this Act amending sections
    19 15 257.1, subsection 2, section 260C.17, section 260G.3,
    19 16 subsection 2, and enacting section 260C.18C, take
    19 17 effect July 1, 2005, and are applicable to the school
    19 18 budget year beginning July 1, 2006, and succeeding
    19 19 budget years.
    19 20    2.  The sections of this Act amending section
    19 21 441.21, subsections 4 and 5, and enacting section
    19 22 441.21, subsection 5A, apply retroactively to January
    19 23 1, 2005, for assessment years beginning on or after
    19 24 that date.>
    19 25 #4.  Title page, by striking lines 1 through 4 and
    19 26 inserting the following:  <An Act relating to property
    19 27 taxation and related aspects of education funding by
    19 28 increasing the regular program foundation base,
    19 29 modifying the community college operations levy,
    19 30 creating a local workforce and economic development
    19 31 fund for community colleges, modifying property
    19 32 assessment guidelines and notification requirements,
    19 33 creating a property assessment appeal board to hear
    19 34 appeals of the actions of local boards of review,
    19 35 tying together the assessment limitations of certain
    19 36 classes of property, and providing effective and
    19 37 retroactive applicability dates.>
    19 38 #5.  By renumbering as necessary.
    19 39
    19 40
    19 41                               
    19 42 PAULSEN of Linn
    19 43 HF 848.1
    19 44 rn/es/25

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