S-3360

   Amend House File 478, as amended, passed, and reprinted by the House, as follows:
   1.  By striking everything after the enacting clause and inserting: 
<DIVISION I
PROPERTY ASSESSMENT APPEAL BOARD

   Section 1.  Section 441.37A, subsection 1, paragraph a, Code 2017, is amended to read as follows:
   a.  For the assessment year beginning January 1, 2007, and all subsequent assessment years beginning before January 1, 2021, appeals may be taken from the action of the board of review with reference to protests of assessment, valuation, or application of an equalization order to the property assessment appeal board created in section 421.1A. However, a property owner or aggrieved taxpayer or an appellant described in section 441.42 may bypass the property assessment appeal board and appeal the decision of the local board of review to the district court pursuant to section 441.38.
   Sec. 2.  REPEAL.  2005 Iowa Acts, chapter 150, section 134, as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 Iowa Acts, chapter 109, section 1, is repealed.
DIVISION II
PROTEST AND APPEAL BURDEN OF PROOF

   Sec. 3.  Section 441.21, subsection 3, paragraph b, Code 2017, is amended to read as follows:
   b.  (1)  The For assessment years beginning before January 1, 2018, the burden of proof shall be upon any complainant attacking such valuation as excessive, inadequate, inequitable, or capricious; however. However, in protest or appeal proceedings when the complainant offers competent evidence by at least two disinterested witnesses that the market value of the property is less than the market value determined by the assessor, the burden of proof thereafter shall be upon the officials or persons seeking to uphold such valuation to be assessed.
   (2)  For assessment years beginning on or after January 1, 2018, the burden of proof shall be upon any complainant attacking such valuation as excessive, inadequate, inequitable, or capricious. However, in protest or appeal proceedings when the complainant offers competent evidence that the market value of the property is different than the market value determined by the assessor, the burden of proof thereafter shall be upon the officials or persons seeking to uphold such valuation to be assessed.
   (3)  If the classification of a property has been previously adjudicated by the property assessment appeal board or a court as part of an appeal under this chapter, there is a presumption that the classification of the property has not changed for each of the four subsequent assessment years, unless a subsequent such adjudication of the classification of the property has occurred, and the burden of demonstrating a change in use shall be upon the person asserting a change to the property’s classification.
   Sec. 4.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
   Sec. 5.  RETROACTIVE APPLICABILITY.  The following provision of this division of this Act applies retroactively to January 1, 2017, for assessment years beginning on or after that date:
   1.  The portion of the section of this division of this Act enacting section 441.21, subsection 3, paragraph “b”, subparagraph (3).
DIVISION III
ASSESSOR QUALIFICATIONS AND CONDUCT

   Sec. 6.  Section 441.5, subsection 3, Code 2017, is amended to read as follows:
   3.  Only individuals who possess a high school diploma or its equivalent and who have completed the preliminary education requirements established under subsection 3A are eligible to take the examination. A person desiring to take the examination shall complete an application prior to the administration of the examination.  Evidence of successful completion of the preliminary education requirements under subsection 3A shall be included with the application.
   Sec. 7.  Section 441.5, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  The director of revenue shall prescribe by rule preliminary education requirements, including a preliminary course of study, that each individual must successfully complete in order to be eligible to take the examination. The course of study prescribed by the director of revenue may include those subjects covered by the examination and listed under subsection 2 and any other subjects or courses the director of revenue deems relevant, including those courses offered and standards established by the international association of assessing officers.
   Sec. 8.  Section 441.9, Code 2017, is amended to read as follows:
   441.9  Removal of assessor.
   The assessor may be removed by a majority vote of the conference board, after charges of misconduct, nonfeasance, malfeasance, or misfeasance in office shall have been substantiated at a public hearing, if same is demanded by the assessor by written notice served upon the chairperson of the conference board.  For purposes of this section, “misconduct” includes but is not limited to knowingly engaging in assessment methods, practices, or conduct that contravene any applicable law, administrative rule, or order of any court or other government authority.
   Sec. 9.  Section 441.10, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  The director of revenue shall prescribe by rule deputy assessor preliminary education requirements, including a preliminary course of study, that each individual must successfully complete in order to be eligible to take the deputy assessor examination. The course of study prescribed by the director of revenue may include those subjects covered by the examination and any other subjects or courses the director of revenue deems relevant, including those courses offered and standards established by the international association of assessing officers. Evidence of successful completion of the deputy assessor preliminary education requirements shall be included with the application to take the deputy assessor examination.
   Sec. 10.  ASSESSOR CONTINUING EDUCATION STUDY —— REPORT.
   1.  The department of revenue shall study the current system of continuing education for assessors and deputy assessors under chapter 441 and make recommendations for changes.
   2.  The department of revenue shall prepare and file a report detailing recommendations for changes to the current system of assessor and deputy assessor continuing education requirements. The report shall be filed by the department of revenue with the chairpersons and ranking members of the ways and means committees of the senate and the house of representatives and with the legislative services agency by December 15, 2017.
   Sec. 11.  EFFECTIVE UPON ENACTMENT.  The following provision of this division of this Act, being deemed of immediate importance, takes effect upon enactment:
   1.  The section of this division of this Act amending section 441.9.
   Sec. 12.  APPLICABILITY.  The following provisions of this division of this Act apply beginning January 1, 2018, for the appointment of assessors and deputy assessors that are not reappointments occurring on or after that date:
   1.  The section of this division of this Act amending section 441.5, subsection 3.
   2.  The section of this division of this Act enacting section 441.5, subsection 3A.
   3.  The section of this division of this Act enacting section 441.10, subsection 1A.
DIVISION IV
PROPERTY ASSESSMENT GROUNDS FOR PROTESTS AND APPEALS

   Sec. 13.  Section 441.30, subsections 1 and 2, Code 2017, are amended to read as follows:
   1.  Any property owner or aggrieved taxpayer who is dissatisfied with the owner’s or taxpayer’s assessment may contact the assessor by telephone or in writing by paper or electronic medium on or after April 2, to and including April 25, of the year of the assessment to inquire about the specifics and accuracy of the assessment. Such an inquiry may also include a request for an informal review of the assessment by the assessor under one or more of the grounds for protest authorized under section 441.37 for the same assessment year.
   2.  In response to an inquiry under subsection 1, if the assessor, following an informal review, determines that the assessment was incorrect under one or more of the grounds for protest authorized under section 441.37 for the same assessment year, the assessor may, on or before April 25, recommend that the property owner or aggrieved taxpayer file a protest with the local board of review and may file a recommendation with the local board of review related to the informal review, or may enter into a signed written agreement with the property owner or aggrieved taxpayer authorizing the assessor to correct or modify the assessment according to the agreement of the parties.
   Sec. 14.  Section 441.37, subsection 1, paragraph a, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   Any property owner or aggrieved taxpayer who is dissatisfied with the owner’s or taxpayer’s assessment may file a protest against such assessment with the board of review on or after April 2, to and including April 30, of the year of the assessment. In any county which has been declared to be a disaster area by proper federal authorities after March 1 and prior to May 20 of said year of assessment, the board of review shall be authorized to remain in session until June 15 and the time for filing a protest shall be extended to and include the period from May 25 to June 5 of such year. The protest shall be in writing on forms prescribed by the director of revenue and, except as provided in subsection 3, signed by the one protesting or by the protester’s duly authorized agent. The taxpayer may have an oral hearing on the protest if the request for the oral hearing is made in writing at the time of filing the protest. The protest must be confined to one or more of the following grounds:
   Sec. 15.  Section 441.37, subsection 1, paragraph a, subparagraph (1), Code 2017, is amended to read as follows:
   (1)  For odd-numbered assessment years and for even-numbered assessment years for property that was reassessed in such even-numbered assessment year:
   (a)  (1)  That said assessment is not equitable as compared with assessments of other like property in the taxing district. When this ground is relied upon as the basis of a protest the legal description and assessments of a representative number of comparable properties, as described by the aggrieved taxpayer shall be listed on the protest, otherwise said protest shall not be considered on this ground.
   (b)  (2)  That the property is assessed for more than the value authorized by law. When this ground is relied upon, the protesting party shall state the specific amount which the protesting party believes the property to be overassessed, and the amount which the party considers to be its actual value and fair assessment.
   (c)  (3)  That the property is not assessable, is exempt from taxes, or is misclassified and stating the reasons for the protest.
   (d)  (4)  That there is an error in the assessment and state the specific alleged error. When this ground is relied upon, the error may include but is not limited to listing errors, clerical or mathematical errors, or other errors that result in an error in the assessment.
   (e)  (5)  That there is fraud or misconduct in the assessment which shall be specifically stated.  For purposes of this section, “misconduct” means the same as defined in section 441.9. If the local board of review, property assessment appeal board, or district court decides in favor of the property owner or aggrieved taxpayer and finds that there was fraud or misconduct in the assessment, the property owner’s or aggrieved taxpayer’s reasonable costs incurred in bringing the protest or appeal shall be paid from the assessment expense fund under section 441.16. For purposes of this section, costs include but are not limited to legal fees, appraisal fees, and witness fees.
   Sec. 16.  Section 441.37, subsection 1, paragraph a, subparagraph (2), Code 2017, is amended by striking the subparagraph.
   Sec. 17.  Section 441.37A, subsection 1, paragraph b, Code 2017, is amended to read as follows:
   b.  For an appeal to the property assessment appeal board to be valid, written notice must be filed by the party appealing the decision with the secretary of the property assessment appeal board within twenty days after the date of adjournment of the local board of review or May 31, whichever is later. The written notice of appeal shall include a petition setting forth the basis of the appeal and the relief sought. No new New grounds in addition to those set out in the protest to the local board of review, as provided in section 441.37, can may be pleaded, but and additional evidence to sustain those grounds set out in the protest to the local board of review may be introduced. The assessor shall have the same right to appeal to the assessment appeal board as an individual taxpayer, public body, or other public officer as provided in section 441.42. An appeal to the board is a contested case under chapter 17A.
   Sec. 18.  Section 441.38, subsection 1, Code 2017, is amended to read as follows:
   1.  Appeals may be taken from the action of the local board of review with reference to protests of assessment, to the district court of the county in which the board holds its sessions within twenty days after its adjournment or May 31, whichever date is later. Appeals may be taken from the action of the property assessment appeal board to the district court of the county where the property which is the subject of the appeal is located within twenty days after the letter of disposition of the appeal by the property assessment appeal board is postmarked to the appellant.  For appeals taken from the local board of review directly to district court, new grounds in addition to those set out in the protest to the local board of review, as provided in section 441.37, may be pleaded. No For appeals taken from the property assessment appeal board to district court, new grounds in addition to those set out in the protest to the local board of review as provided in section 441.37, or in addition to those set out in the appeal to the property assessment appeal board, if applicable, can shall not be pleaded. Additional For appeals taken from the local board of review directly to district court, additional evidence to sustain those grounds set out in the protest to the local board of review may be introduced in an appeal from the local board of review to the district court. However, no new evidence to sustain those grounds may be introduced in an appeal from the property assessment appeal board to the district court. The assessor shall have the same right to appeal and in the same manner as an individual taxpayer, public body, or other public officer as provided in section 441.42. Appeals shall be taken by filing a written notice of appeal with the clerk of district court. Filing of the written notice of appeal shall preserve all rights of appeal of the appellant.
   Sec. 19.  EFFECTIVE UPON ENACTMENT.  The following provisions of this division of this Act, being deemed of immediate importance, take effect upon enactment:
   1.  The section of this division of this Act amending section 441.37A, subsection 1, paragraph “b”.
   2.  The section of this division of this Act amending section 441.38, subsection 1.
   Sec. 20.  APPLICABILITY.  Except for the provisions of this division of this Act amending section 441.37A, subsection 1, paragraph “b”, and section 441.38, subsection 1, this division of this Act applies to assessment years beginning on or after January 1, 2018.
   Sec. 21.  RETROACTIVE APPLICABILITY.  The following provisions of this division of this Act apply retroactively to January 1, 2017, for assessment years beginning on or after that date:
   1.  The section of this division of this Act amending section 441.37A, subsection 1, paragraph “b”.
   2.  The section of this division of this Act amending section 441.38, subsection 1.>
   2.  Title page, by striking lines 1 through 6 and inserting <An Act relating to property tax assessments, local assessors, and property assessment protests and appeals, and including effective date, applicability, and retroactive applicability provisions.>

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RANDY FEENSTRA