House File 478 S-3360 Amend House File 478, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 PROPERTY ASSESSMENT APPEAL BOARD 6 Section 1. Section 441.37A, subsection 1, paragraph a, Code 7 2017, is amended to read as follows: 8 a. For the assessment year beginning January 1, 2007, and 9 all subsequent assessment years beginning before January 1, 10 2021 , appeals may be taken from the action of the board of 11 review with reference to protests of assessment, valuation, or 12 application of an equalization order to the property assessment 13 appeal board created in section 421.1A . However, a property 14 owner or aggrieved taxpayer or an appellant described in 15 section 441.42 may bypass the property assessment appeal board 16 and appeal the decision of the local board of review to the 17 district court pursuant to section 441.38 . 18 Sec. 2. REPEAL. 2005 Iowa Acts, chapter 150, section 134, 19 as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 20 Iowa Acts, chapter 109, section 1, is repealed. 21 DIVISION II 22 PROTEST AND APPEAL BURDEN OF PROOF 23 Sec. 3. Section 441.21, subsection 3, paragraph b, Code 24 2017, is amended to read as follows: 25 b. (1) The For assessment years beginning before January 26 1, 2018, the burden of proof shall be upon any complainant 27 attacking such valuation as excessive, inadequate, inequitable, 28 or capricious ; however . However , in protest or appeal 29 proceedings when the complainant offers competent evidence by 30 at least two disinterested witnesses that the market value of 31 the property is less than the market value determined by the 32 assessor, the burden of proof thereafter shall be upon the 33 officials or persons seeking to uphold such valuation to be 34 assessed. 35 -1- HF478.2536 (2) 87 md/jh 1/ 9 #1.

(2) For assessment years beginning on or after January 1 1, 2018, the burden of proof shall be upon any complainant 2 attacking such valuation as excessive, inadequate, inequitable, 3 or capricious. However, in protest or appeal proceedings when 4 the complainant offers competent evidence that the market value 5 of the property is different than the market value determined 6 by the assessor, the burden of proof thereafter shall be upon 7 the officials or persons seeking to uphold such valuation to 8 be assessed. 9 (3) If the classification of a property has been previously 10 adjudicated by the property assessment appeal board or a 11 court as part of an appeal under this chapter, there is a 12 presumption that the classification of the property has not 13 changed for each of the four subsequent assessment years, 14 unless a subsequent such adjudication of the classification of 15 the property has occurred, and the burden of demonstrating a 16 change in use shall be upon the person asserting a change to 17 the property’s classification. 18 Sec. 4. EFFECTIVE UPON ENACTMENT. This division of this 19 Act, being deemed of immediate importance, takes effect upon 20 enactment. 21 Sec. 5. RETROACTIVE APPLICABILITY. The following provision 22 of this division of this Act applies retroactively to January 23 1, 2017, for assessment years beginning on or after that date: 24 1. The portion of the section of this division of this 25 Act enacting section 441.21, subsection 3, paragraph “b”, 26 subparagraph (3). 27 DIVISION III 28 ASSESSOR QUALIFICATIONS AND CONDUCT 29 Sec. 6. Section 441.5, subsection 3, Code 2017, is amended 30 to read as follows: 31 3. Only individuals who possess a high school diploma 32 or its equivalent and who have completed the preliminary 33 education requirements established under subsection 3A are 34 eligible to take the examination. A person desiring to take 35 -2- HF478.2536 (2) 87 md/jh 2/ 9

the examination shall complete an application prior to the 1 administration of the examination. Evidence of successful 2 completion of the preliminary education requirements under 3 subsection 3A shall be included with the application. 4 Sec. 7. Section 441.5, Code 2017, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 3A. The director of revenue shall 7 prescribe by rule preliminary education requirements, including 8 a preliminary course of study, that each individual must 9 successfully complete in order to be eligible to take the 10 examination. The course of study prescribed by the director of 11 revenue may include those subjects covered by the examination 12 and listed under subsection 2 and any other subjects or 13 courses the director of revenue deems relevant, including those 14 courses offered and standards established by the international 15 association of assessing officers. 16 Sec. 8. Section 441.9, Code 2017, is amended to read as 17 follows: 18 441.9 Removal of assessor. 19 The assessor may be removed by a majority vote of the 20 conference board, after charges of misconduct, nonfeasance, 21 malfeasance, or misfeasance in office shall have been 22 substantiated at a public hearing, if same is demanded by the 23 assessor by written notice served upon the chairperson of the 24 conference board. For purposes of this section, “misconduct” 25 includes but is not limited to knowingly engaging in assessment 26 methods, practices, or conduct that contravene any applicable 27 law, administrative rule, or order of any court or other 28 government authority. 29 Sec. 9. Section 441.10, Code 2017, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 1A. The director of revenue shall prescribe 32 by rule deputy assessor preliminary education requirements, 33 including a preliminary course of study, that each individual 34 must successfully complete in order to be eligible to take the 35 -3- HF478.2536 (2) 87 md/jh 3/ 9

deputy assessor examination. The course of study prescribed by 1 the director of revenue may include those subjects covered by 2 the examination and any other subjects or courses the director 3 of revenue deems relevant, including those courses offered 4 and standards established by the international association 5 of assessing officers. Evidence of successful completion of 6 the deputy assessor preliminary education requirements shall 7 be included with the application to take the deputy assessor 8 examination. 9 Sec. 10. ASSESSOR CONTINUING EDUCATION STUDY —— REPORT. 10 1. The department of revenue shall study the current system 11 of continuing education for assessors and deputy assessors 12 under chapter 441 and make recommendations for changes. 13 2. The department of revenue shall prepare and file a report 14 detailing recommendations for changes to the current system of 15 assessor and deputy assessor continuing education requirements. 16 The report shall be filed by the department of revenue with 17 the chairpersons and ranking members of the ways and means 18 committees of the senate and the house of representatives and 19 with the legislative services agency by December 15, 2017. 20 Sec. 11. EFFECTIVE UPON ENACTMENT. The following provision 21 of this division of this Act, being deemed of immediate 22 importance, takes effect upon enactment: 23 1. The section of this division of this Act amending section 24 441.9. 25 Sec. 12. APPLICABILITY. The following provisions of this 26 division of this Act apply beginning January 1, 2018, for the 27 appointment of assessors and deputy assessors that are not 28 reappointments occurring on or after that date: 29 1. The section of this division of this Act amending section 30 441.5, subsection 3. 31 2. The section of this division of this Act enacting section 32 441.5, subsection 3A. 33 3. The section of this division of this Act enacting section 34 441.10, subsection 1A. 35 -4- HF478.2536 (2) 87 md/jh 4/ 9

DIVISION IV 1 PROPERTY ASSESSMENT GROUNDS FOR PROTESTS AND APPEALS 2 Sec. 13. Section 441.30, subsections 1 and 2, Code 2017, are 3 amended to read as follows: 4 1. Any property owner or aggrieved taxpayer who is 5 dissatisfied with the owner’s or taxpayer’s assessment may 6 contact the assessor by telephone or in writing by paper 7 or electronic medium on or after April 2, to and including 8 April 25, of the year of the assessment to inquire about the 9 specifics and accuracy of the assessment. Such an inquiry may 10 also include a request for an informal review of the assessment 11 by the assessor under one or more of the grounds for protest 12 authorized under section 441.37 for the same assessment year . 13 2. In response to an inquiry under subsection 1 , if the 14 assessor, following an informal review, determines that the 15 assessment was incorrect under one or more of the grounds for 16 protest authorized under section 441.37 for the same assessment 17 year , the assessor may, on or before April 25, recommend that 18 the property owner or aggrieved taxpayer file a protest with 19 the local board of review and may file a recommendation with 20 the local board of review related to the informal review, or 21 may enter into a signed written agreement with the property 22 owner or aggrieved taxpayer authorizing the assessor to correct 23 or modify the assessment according to the agreement of the 24 parties. 25 Sec. 14. Section 441.37, subsection 1, paragraph a, 26 unnumbered paragraph 1, Code 2017, is amended to read as 27 follows: 28 Any property owner or aggrieved taxpayer who is dissatisfied 29 with the owner’s or taxpayer’s assessment may file a protest 30 against such assessment with the board of review on or 31 after April 2, to and including April 30, of the year of the 32 assessment. In any county which has been declared to be a 33 disaster area by proper federal authorities after March 1 and 34 prior to May 20 of said year of assessment, the board of review 35 -5- HF478.2536 (2) 87 md/jh 5/ 9

shall be authorized to remain in session until June 15 and the 1 time for filing a protest shall be extended to and include the 2 period from May 25 to June 5 of such year. The protest shall 3 be in writing on forms prescribed by the director of revenue 4 and, except as provided in subsection 3 , signed by the one 5 protesting or by the protester’s duly authorized agent. The 6 taxpayer may have an oral hearing on the protest if the request 7 for the oral hearing is made in writing at the time of filing 8 the protest. The protest must be confined to one or more of the 9 following grounds: 10 Sec. 15. Section 441.37, subsection 1, paragraph a, 11 subparagraph (1), Code 2017, is amended to read as follows: 12 (1) For odd-numbered assessment years and for even-numbered 13 assessment years for property that was reassessed in such 14 even-numbered assessment year: 15 (a) (1) That said assessment is not equitable as compared 16 with assessments of other like property in the taxing district. 17 When this ground is relied upon as the basis of a protest the 18 legal description and assessments of a representative number of 19 comparable properties, as described by the aggrieved taxpayer 20 shall be listed on the protest, otherwise said protest shall 21 not be considered on this ground. 22 (b) (2) That the property is assessed for more than the 23 value authorized by law. When this ground is relied upon, the 24 protesting party shall state the specific amount which the 25 protesting party believes the property to be overassessed, and 26 the amount which the party considers to be its actual value and 27 fair assessment. 28 (c) (3) That the property is not assessable, is exempt 29 from taxes, or is misclassified and stating the reasons for the 30 protest . 31 (d) (4) That there is an error in the assessment and state 32 the specific alleged error . When this ground is relied upon, 33 the error may include but is not limited to listing errors, 34 clerical or mathematical errors, or other errors that result 35 -6- HF478.2536 (2) 87 md/jh 6/ 9

in an error in the assessment. 1 (e) (5) That there is fraud or misconduct in the assessment 2 which shall be specifically stated. For purposes of this 3 section, “misconduct” means the same as defined in section 4 441.9. If the local board of review, property assessment 5 appeal board, or district court decides in favor of the 6 property owner or aggrieved taxpayer and finds that there was 7 fraud or misconduct in the assessment, the property owner’s or 8 aggrieved taxpayer’s reasonable costs incurred in bringing the 9 protest or appeal shall be paid from the assessment expense 10 fund under section 441.16. For purposes of this section, costs 11 include but are not limited to legal fees, appraisal fees, and 12 witness fees. 13 Sec. 16. Section 441.37, subsection 1, paragraph a, 14 subparagraph (2), Code 2017, is amended by striking the 15 subparagraph. 16 Sec. 17. Section 441.37A, subsection 1, paragraph b, Code 17 2017, is amended to read as follows: 18 b. For an appeal to the property assessment appeal board to 19 be valid, written notice must be filed by the party appealing 20 the decision with the secretary of the property assessment 21 appeal board within twenty days after the date of adjournment 22 of the local board of review or May 31, whichever is later. 23 The written notice of appeal shall include a petition setting 24 forth the basis of the appeal and the relief sought. No new 25 New grounds in addition to those set out in the protest to 26 the local board of review , as provided in section 441.37 , can 27 may be pleaded, but and additional evidence to sustain those 28 grounds set out in the protest to the local board of review 29 may be introduced. The assessor shall have the same right 30 to appeal to the assessment appeal board as an individual 31 taxpayer, public body, or other public officer as provided in 32 section 441.42 . An appeal to the board is a contested case 33 under chapter 17A . 34 Sec. 18. Section 441.38, subsection 1, Code 2017, is amended 35 -7- HF478.2536 (2) 87 md/jh 7/ 9

to read as follows: 1 1. Appeals may be taken from the action of the local 2 board of review with reference to protests of assessment, to 3 the district court of the county in which the board holds 4 its sessions within twenty days after its adjournment or May 5 31, whichever date is later. Appeals may be taken from the 6 action of the property assessment appeal board to the district 7 court of the county where the property which is the subject of 8 the appeal is located within twenty days after the letter of 9 disposition of the appeal by the property assessment appeal 10 board is postmarked to the appellant. For appeals taken from 11 the local board of review directly to district court, new 12 grounds in addition to those set out in the protest to the 13 local board of review, as provided in section 441.37, may be 14 pleaded. No For appeals taken from the property assessment 15 appeal board to district court, new grounds in addition to 16 those set out in the protest to the local board of review as 17 provided in section 441.37 , or in addition to those set out 18 in the appeal to the property assessment appeal board , if 19 applicable, can shall not be pleaded. Additional For appeals 20 taken from the local board of review directly to district 21 court, additional evidence to sustain those grounds set out 22 in the protest to the local board of review may be introduced 23 in an appeal from the local board of review to the district 24 court . However, no new evidence to sustain those grounds may 25 be introduced in an appeal from the property assessment appeal 26 board to the district court. The assessor shall have the 27 same right to appeal and in the same manner as an individual 28 taxpayer, public body, or other public officer as provided in 29 section 441.42 . Appeals shall be taken by filing a written 30 notice of appeal with the clerk of district court. Filing 31 of the written notice of appeal shall preserve all rights of 32 appeal of the appellant. 33 Sec. 19. EFFECTIVE UPON ENACTMENT. The following 34 provisions of this division of this Act, being deemed of 35 -8- HF478.2536 (2) 87 md/jh 8/ 9

immediate importance, take effect upon enactment: 1 1. The section of this division of this Act amending section 2 441.37A, subsection 1, paragraph “b”. 3 2. The section of this division of this Act amending section 4 441.38, subsection 1. 5 Sec. 20. APPLICABILITY. Except for the provisions of this 6 division of this Act amending section 441.37A, subsection 1, 7 paragraph “b”, and section 441.38, subsection 1, this division 8 of this Act applies to assessment years beginning on or after 9 January 1, 2018. 10 Sec. 21. RETROACTIVE APPLICABILITY. The following 11 provisions of this division of this Act apply retroactively to 12 January 1, 2017, for assessment years beginning on or after 13 that date: 14 1. The section of this division of this Act amending section 15 441.37A, subsection 1, paragraph “b”. 16 2. The section of this division of this Act amending section 17 441.38, subsection 1. > 18 2. Title page, by striking lines 1 through 6 and inserting 19 < An Act relating to property tax assessments, local assessors, 20 and property assessment protests and appeals, and including 21 effective date, applicability, and retroactive applicability 22 provisions. > 23 ______________________________ RANDY FEENSTRA -9- HF478.2536 (2) 87 md/jh 9/ 9 #2.