Senate File 356 S-3353 Amend Senate File 356 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 331.559, subsection 20, Code 2017, is 4 amended to read as follows: 5 20. Apportion and collect the costs assessed by the district 6 court against the board of review or any taxing body district 7 resulting from an appeal of property assessments as provided 8 in section 441.40 . 9 Sec. 2. Section 428.4, subsection 1, Code 2017, is amended 10 to read as follows: 11 1. Property shall be assessed for taxation each year. 12 Real estate shall be listed and assessed in 1981 and every 13 two years thereafter. The assessment of real estate shall 14 be the value of the real estate as of January 1 of the year 15 of the assessment. The year 1981 and each odd-numbered year 16 thereafter shall be a reassessment year. In any year, after 17 the year in which an assessment has been made of all the real 18 estate in an assessing jurisdiction, the assessor shall value 19 and assess or revalue and reassess, as the case may require, 20 any real estate that the assessor finds was incorrectly valued 21 or assessed, or was not listed, valued, and assessed, in the 22 assessment year immediately preceding, also any real estate 23 the assessor finds has changed in value subsequent to January 24 1 of the preceding real estate assessment year. However, a 25 percentage increase on a class of property shall not be made 26 in a year not subject to an equalization order unless ordered 27 by the department of revenue. The assessor shall determine 28 the actual value and compute the taxable value thereof as of 29 January 1 of the year of the revaluation and reassessment. The 30 assessment shall be completed as specified in section 441.28 , 31 but no reduction or increase in actual value shall be made for 32 prior years. If an assessor makes a change in the valuation 33 of the real estate as provided for, sections 441.23 , 441.37 , 34 441.37A , and 441.38 , and 441.39 apply. 35 -1- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 1/ 12 #1.

Sec. 3. Section 441.19, subsection 1, paragraph a, Code 1 2017, is amended to read as follows: 2 a. Supplemental and optional to the procedure for the 3 assessment of property by the assessor as provided in this 4 chapter , the assessor may require from all persons required 5 to list their property for taxation as provided by sections 6 428.1 and 428.2 , a supplemental return to be prescribed by 7 the director of revenue upon which the person shall list 8 the person’s property. The supplemental return shall be in 9 substantially the same form as now prescribed by law for 10 the assessment rolls used in the listing of property by the 11 assessors. However, for assessment years beginning on or after 12 January 1, 2018, and unless otherwise required for property 13 valued by the department of revenue pursuant to chapters 428, 14 433, 437, and 438, a supplemental return shall not request, 15 and a person shall not be otherwise required to provide to the 16 assessor for property assessment purposes, sales or receipts 17 data, expense data, balance sheets, bank account information, 18 or other data related to the financial condition of a business 19 operating in whole or in part on the property if the property 20 is both classified as commercial or industrial property and 21 owned and used by the owner of the business. Every person 22 required to list property for taxation shall make a complete 23 listing of the property upon supplemental forms and return the 24 listing to the assessor as promptly as possible. The return 25 shall be verified over the signature of the person making the 26 return and section 441.25 applies to any person making such 27 a return. The assessor shall make supplemental return forms 28 available as soon as practicable after the first day of January 29 of each year. The assessor shall make supplemental return 30 forms available to the taxpayer by mail, or at a designated 31 place within the taxing district. 32 Sec. 4. Section 441.21, subsection 2, Code 2017, is amended 33 to read as follows: 34 2. In the event market value of the property being assessed 35 -2- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 2/ 12

cannot be readily established in the foregoing manner, then 1 the assessor may determine the value of the property using the 2 other uniform and recognized appraisal methods including its 3 productive and earning capacity, if any, industrial conditions, 4 its cost, physical and functional depreciation and obsolescence 5 and replacement cost, and all other factors which would assist 6 in determining the fair and reasonable market value of the 7 property but the actual value shall not be determined by use 8 of only one such factor. The following shall not be taken into 9 consideration: Special value or use value of the property to 10 its present owner, and the goodwill or value of a business 11 which uses the property as distinguished from the value of 12 the property as property. In addition, for assessment years 13 beginning on or after January 1, 2018, and unless otherwise 14 required for property valued by the department of revenue 15 pursuant to chapters 428, 433, 437, and 438, the assessor 16 shall not take into consideration and shall not request from 17 any person sales or receipts data, expense data, balance 18 sheets, bank account information, or other data related to 19 the financial condition of a business operating in whole or 20 in part on the property if the property is both classified as 21 commercial or industrial property and owned and used by the 22 owner of the business. However, in assessing property that 23 is rented or leased to low-income individuals and families 24 as authorized by section 42 of the Internal Revenue Code, 25 as amended, and which section limits the amount that the 26 individual or family pays for the rental or lease of units 27 in the property, the assessor shall, unless the owner elects 28 to withdraw the property from the assessment procedures for 29 section 42 property, use the productive and earning capacity 30 from the actual rents received as a method of appraisal and 31 shall take into account the extent to which that use and 32 limitation reduces the market value of the property. The 33 assessor shall not consider any tax credit equity or other 34 subsidized financing as income provided to the property in 35 -3- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 3/ 12

determining the assessed value. The property owner shall 1 notify the assessor when property is withdrawn from section 42 2 eligibility under the Internal Revenue Code or if the owner 3 elects to withdraw the property from the assessment procedures 4 for section 42 property under this subsection . The property 5 shall not be subject to section 42 assessment procedures 6 for the assessment year for which section 42 eligibility is 7 withdrawn or an election is made. This notification must 8 be provided to the assessor no later than March 1 of the 9 assessment year or the owner will be subject to a penalty of 10 five hundred dollars for that assessment year. The penalty 11 shall be collected at the same time and in the same manner 12 as regular property taxes. An election to withdraw from the 13 assessment procedures for section 42 property is irrevocable. 14 Property that is withdrawn from the assessment procedures 15 for section 42 property shall be classified and assessed as 16 multiresidential property unless the property otherwise fails 17 to meet the requirements of section 441.21, subsection 13 . 18 Upon adoption of uniform rules by the department of revenue 19 or succeeding authority covering assessments and valuations 20 of such properties, the valuation on such properties shall be 21 determined in accordance with such rules and in accordance with 22 forms and guidelines contained in the real property appraisal 23 manual prepared by the department as updated from time to time 24 for assessment purposes to assure uniformity, but such rules, 25 forms, and guidelines shall not be inconsistent with or change 26 the foregoing means of determining the actual, market, taxable 27 and assessed values. 28 Sec. 5. Section 441.37A, subsection 1, Code 2017, is amended 29 to read as follows: 30 1. a. For the assessment year beginning January 1, 2007, 31 and all subsequent assessment years beginning before January 1, 32 2021, appeals Appeals may be taken from the action of the board 33 of review with reference to protests of assessment, valuation, 34 or application of an equalization order to the property 35 -4- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 4/ 12

assessment appeal board created in section 421.1A . However, a 1 property owner or aggrieved taxpayer or an appellant described 2 in section 441.42 may bypass the property assessment appeal 3 board and appeal the decision of the local board of review to 4 the district court pursuant to section 441.38 . 5 b. For an appeal to the property assessment appeal board to 6 be valid, written notice must be filed by the party appealing 7 the decision with the secretary of the property assessment 8 appeal board a party must file an appeal with the board within 9 twenty days after the date of adjournment of the local board 10 of review or May 31, whichever is later. The written notice 11 of appeal shall include a petition setting forth the basis of 12 the appeal and the relief sought. No new grounds in addition 13 to those set out in the protest to the local board of review 14 as provided in section 441.37 can be pleaded, but additional 15 evidence to sustain those grounds may be introduced. The 16 assessor shall have the same right to appeal to the assessment 17 appeal board as an individual taxpayer, public body, or other 18 public officer as provided in section 441.42 . An appeal to the 19 board is a contested case under chapter 17A . 20 c. Filing of the written notice of appeal and petition 21 with the secretary of the property assessment appeal board 22 shall preserve all rights of appeal of the appellant, except as 23 otherwise provided in subsection 2 . A copy of the appellant’s 24 written notice of appeal and petition shall be mailed by the 25 secretary of the property assessment appeal board to the local 26 board of review whose decision is being appealed. 27 d. In all cases where a change in assessed valuation of one 28 hundred thousand dollars or more is petitioned for, the local 29 board of review shall mail a copy of the written notice of 30 appeal and petition to all affected taxing districts as shown 31 on the last available tax list. A copy of the appellant’s 32 appeal shall be sent by the property assessment appeal board to 33 the local board of review whose decision is being appealed. 34 e. The property assessment appeal board may, by rule, 35 -5- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 5/ 12

provide for the filing of a notice of appeal and petition with 1 the secretary of the board an appeal by electronic means. All 2 requirements of this section for an appeal to the board shall 3 apply to an appeal filed electronically. 4 Sec. 6. Section 441.37A, subsection 2, paragraph b, Code 5 2017, is amended to read as follows: 6 b. Each appeal may be considered by one or more members of 7 the board, and the chairperson of the board may assign members 8 to consider appeals. If a hearing is requested, it shall be 9 open to the public and shall be conducted in accordance with 10 the rules of practice and procedure adopted by the board. The 11 board may provide by rule for participation in such hearings 12 by telephone or other means of electronic communication. 13 However, any deliberation of the board or of board members 14 considering the appeal in reaching a decision on any appeal 15 shall be confidential. Any deliberation of the board or of 16 board members to rule on procedural motions in a pending appeal 17 or to deliberate on the decision to be reached in an appeal 18 is exempt from the provisions of chapter 21 . The property 19 assessment appeal board or any member of the board considering 20 the appeal may require the production of any books, records, 21 papers, or documents as evidence in any matter pending before 22 the board that may be material, relevant, or necessary for the 23 making of a just decision. Any books, records, papers, or 24 documents produced as evidence shall become part of the record 25 of the appeal. Any testimony given relating to the appeal 26 shall be transcribed electronically recorded and made a part of 27 the record of the appeal. 28 Sec. 7. Section 441.37A, subsection 3, Code 2017, is amended 29 to read as follows: 30 3. a. The burden of proof for all appeals before the 31 board shall be as stated in section 441.21, subsection 3 . The 32 board members considering the appeal shall determine anew all 33 questions arising before the local board of review which that 34 relate to the liability of the property to assessment or the 35 -6- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 6/ 12

amount thereof of the assessment . All of the evidence shall 1 be considered and there shall be no presumption as to the 2 correctness of the valuation of assessment appealed from. The 3 property assessment appeal board shall issue a decision in each 4 appeal filed with the board. If the appeal is considered by 5 less than the full membership of the board, the determination 6 made by such members shall be forwarded to the full board 7 for approval, rejection, or modification. If the initial 8 determination is rejected by the board, it shall be returned 9 for reconsideration to the board members making the initial 10 determination. Any deliberation of the board regarding an 11 initial determination shall be confidential. 12 b. The decision of the board shall be considered the final 13 agency action for purposes of further appeal, and is subject 14 to judicial review as provided in section 441.37B, except as 15 otherwise provided in section 441.49 . The decision shall be 16 final unless appealed to district court as provided in section 17 441.38 . A decision of the board modifying an assessment shall 18 be sent to the county auditor and the assessor, who shall 19 correct the assessment books accordingly. An appeal of the 20 board’s decision under section 441.37B shall not itself stay 21 execution or enforcement of the board’s decision. 22 c. The levy of taxes on any assessment appealed to the board 23 shall not be delayed by any proceeding before the board, and 24 if the assessment appealed from is reduced by the decision of 25 the board, any taxes levied upon that portion of the assessment 26 reduced shall be abated or, if already paid, shall , by order 27 of the board, be refunded or credited against future property 28 taxes levied against the property at the option of the property 29 owner or aggrieved taxpayer . 30 d. If the subject of an appeal is the application of an 31 equalization order, the property assessment appeal board shall 32 not order a reduction in assessment greater than the amount 33 that the assessment was increased due to application of the 34 equalization order. 35 -7- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 7/ 12

e. Each party to the appeal shall be responsible for the 1 costs of the appeal incurred by that party. 2 Sec. 8. NEW SECTION . 441.37B Appeal to district court from 3 property assessment appeal board. 4 A party who is aggrieved or adversely affected by a final 5 action of the property assessment appeal board may seek 6 judicial review of the action as provided in chapter 17A. 7 Notwithstanding section 17A.19, subsection 2, a petition for 8 judicial review of the action of the property assessment appeal 9 board shall be filed in the district court of the county where 10 the property that is subject to the appeal is located. 11 Sec. 9. Section 441.38, Code 2017, is amended to read as 12 follows: 13 441.38 Appeal to district court from local board of review . 14 1. Appeals may be taken from the action of the local board 15 of review with reference to protests of assessment, to the 16 district court of the county in which the board holds its 17 sessions within twenty days after its the board’s adjournment 18 or May 31, whichever date is later. Appeals may be taken from 19 the action of the property assessment appeal board to the 20 district court of the county where the property which is the 21 subject of the appeal is located within twenty days after the 22 letter of disposition of the appeal by the property assessment 23 appeal board is postmarked to the appellant. No new grounds 24 in addition to those set out in the protest to the local board 25 of review as provided in section 441.37 , or in addition to 26 those set out in the appeal to the property assessment appeal 27 board, if applicable, can be pleaded. Additional evidence 28 to sustain those grounds may be introduced in an appeal from 29 the local board of review to the district court . However, no 30 new evidence to sustain those grounds may be introduced in 31 an appeal from the property assessment appeal board to the 32 district court. The assessor shall have the same right to 33 appeal and in the same manner as an individual taxpayer, public 34 body, or other public officer as provided in section 441.42 . 35 -8- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 8/ 12

Appeals shall be taken by filing a written notice of appeal 1 with the clerk of district court. Filing of the written notice 2 of appeal shall preserve all rights of appeal of the appellant. 3 2. If the appeal to district court is taken from the action 4 of the local board of review, notice Notice of appeal shall 5 be served as an original notice on the chairperson, presiding 6 officer, or clerk of the board of review after the filing of 7 notice under subsection 1 with the clerk of district court. If 8 the appeal to district court is taken from the action of the 9 property assessment appeal board, notice of appeal shall be 10 served as an original notice on the secretary of the property 11 assessment appeal board after the filing of notice under 12 subsection 1 with the clerk of district court. 13 3. The court shall hear the appeal in equity and determine 14 anew all questions arising before the board of review that 15 relate to the liability of the property to assessment or 16 the amount of the assessment. The court shall consider all 17 of the evidence and there shall be no presumption as to the 18 correctness of the valuation or assessment appealed from. The 19 court’s decision shall be certified by the clerk of the court 20 to the county auditor and the assessor, who shall correct the 21 assessment books accordingly. 22 Sec. 10. Section 441.39, Code 2017, is amended by striking 23 the section and inserting in lieu thereof the following: 24 441.39 Notice of assessment protests and appeals to taxing 25 districts. 26 1. If a property owner or aggrieved taxpayer appeals a 27 decision of the board of review to the property assessment 28 appeal board or to district court and requests an adjustment in 29 valuation of one hundred thousand dollars or more, the assessor 30 shall notify all affected taxing districts as shown on the last 31 available tax list. 32 2. In addition to any other requirement for providing 33 of notice, if a property owner or aggrieved taxpayer files 34 a protest against the assessment of property valued by the 35 -9- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 9/ 12

assessor at five million dollars or more or files an appeal 1 to the property assessment appeal board or the district court 2 with regard to such property, the assessor shall provide notice 3 to the school district in which such property is located 4 within ten days of the filing of the protest or the appeal, as 5 applicable. 6 Sec. 11. Section 441.40, Code 2017, is amended to read as 7 follows: 8 441.40 Costs, fees, and expenses apportioned. 9 The clerk of the court shall likewise certify to the county 10 treasurer the costs assessed by the court on any appeal from a 11 board of review to the district court, in all cases where said 12 the costs are taxed against the board of review or any taxing 13 body district . Thereupon the county treasurer shall compute 14 and apportion the said costs between the various taxing bodies 15 districts participating in the proceeds of the collection of 16 the taxes involved in any such appeal, and said the treasurer 17 shall so compute and apportion the various amounts which said 18 the taxing bodies districts are required to pay in proportion 19 to the amount of taxes each of said the taxing bodies districts 20 is entitled to receive from the whole amount of taxes involved 21 in each of such appeals. The said county treasurer shall 22 deduct from the proceeds of all general taxes collected the 23 amount of costs so computed and apportioned by the treasurer 24 from the moneys due to each taxing body district from general 25 taxes collected. The amount so deducted shall be certified to 26 each taxing body district in lieu of moneys collected. Said 27 The county treasurer shall pay to the clerk of the district 28 court the amount of said the costs so computed, apportioned , 29 and collected by the treasurer in all cases now on file or 30 hereafter filed in which said the costs have not been paid. 31 Sec. 12. Section 441.41, Code 2017, is amended to read as 32 follows: 33 441.41 Legal counsel. 34 In the case of cities having an assessor, the city legal 35 -10- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 10/ 12

department shall represent the assessor and board of review 1 in all litigation dealing with assessments. In the case of 2 counties, the county attorney shall represent the assessor and 3 board of review in all litigation dealing with assessments. 4 Any taxing body district interested in the taxes received from 5 such assessments may be represented by an attorney and shall 6 be required to appear by attorney upon written request of the 7 assessor to the presiding officer of any such taxing body 8 district . The conference board may employ special counsel to 9 assist the city legal department or county attorney as the case 10 may be. 11 Sec. 13. Section 441.44, Code 2017, is amended to read as 12 follows: 13 441.44 Notice of voluntary settlement. 14 1. The property assessment appeal board may adopt rules 15 establishing requirements for notices of voluntary settlements 16 in appeals before the board to be served upon affected taxing 17 districts. 18 2. No A voluntary court settlement of an assessment appeal 19 shall not be valid unless written notice thereof of the 20 settlement shall first be served upon each of the affected 21 taxing bodies interested in the taxes derived from such 22 assessment districts . 23 Sec. 14. Section 443.11, Code 2017, is amended to read as 24 follows: 25 443.11 Procedure on appeal. 26 The appeal provided for in section 443.8 shall be taken 27 within ten days from the time of the final action of the 28 assessor or auditor, by a written notice to that effect to the 29 assessor or auditor, and served as an original notice. The 30 court on appeal shall hear and determine the rights of the 31 parties in the same manner as appeals from the board of review, 32 as prescribed in sections 441.39 441.38 and 441.43 . 33 Sec. 15. Section 602.8102, subsection 61, Code 2017, is 34 amended to read as follows: 35 -11- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 11/ 12

61. Certify the final decision of the district court 1 in an appeal of the tax assessments as provided in section 2 441.39 441.37B or 441.38 . Costs of the appeal to be assessed 3 against the board of review or a taxing body district shall be 4 certified to the treasurer as provided in section 441.40 . 5 Sec. 16. REPEAL. 2005 Iowa Acts, chapter 150, section 134, 6 as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 7 Iowa Acts, chapter 109, section 1, is repealed. 8 Sec. 17. REPEAL. Sections 441.38A and 441.38B, Code 2017, 9 are repealed. 10 Sec. 18. APPLICABILITY. This Act applies to assessment 11 years beginning on or after January 1, 2018. > 12 2. Title page, by striking lines 1 through 4 and inserting: 13 < An Act relating to property tax assessments by modifying 14 requirements for the determination of value, modifying 15 provisions related to the property assessment appeal board by 16 striking the future repeal of provisions relating to the board, 17 modifying procedures and requirements for appeals to the board, 18 and including applicability provisions. > 19 ______________________________ RANDY FEENSTRA -12- SF356.2510 (2) 87 (amending this SF 356 to CONFORM to HF 478) md/jh 12/ 12 #2.