House File 830 - Introduced
HOUSE FILE
BY KURTENBACH and STRUYK
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to property taxation by increasing the square
2 foot tax on mobile and manufactured homes, modifying the terms
3 and continuing education requirements of local assessors,
4 relating to property assessment guidelines for local
5 assessors, modifying the definition of residential property
6 for purposes of assessment, prohibiting increases of certain
7 property assessment amounts in certain circumstances, and
8 including effective and applicability date and transition
9 provisions.
10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 435.22, subsection 1, Code 2005, is
1 2 amended to read as follows:
1 3 1. Multiply the number of square feet of floor space each
1 4 home contains when parked and in use by twenty thirty cents.
1 5 In computing floor space, the exterior measurements of the
1 6 home shall be used as shown on the certificate of title, but
1 7 not including any area occupied by a hitching device.
1 8 Sec. 2. Section 441.5, unnumbered paragraphs 4, 5, and 7,
1 9 Code 2005, are amended to read as follows:
1 10 The director of revenue shall grade the examination taken.
1 11 The director shall notify, in writing, each applicant of the
1 12 score attained by the applicant on the examination. An
1 13 individual who attains a score of seventy percent or greater
1 14 on the examination is eligible to be certified by the director
1 15 of revenue as a candidate for any assessor position. Any
1 16 person who passes the examination and who possesses at least
1 17 two years of appraisal related experience as determined by the
1 18 director of revenue shall be granted regular certification and
1 19 become eligible for appointment to a six=year four=year term
1 20 as assessor. Any person who passes the examination but who
1 21 lacks such experience shall be granted temporary
1 22 certification, and shall be eligible for a provisional
1 23 appointment as assessor.
1 24 Any person possessing temporary certification who receives
1 25 a provisional appointment as assessor shall, during the
1 26 person's first eighteen months in office, be required to
1 27 complete a course of study prescribed and administered by the
1 28 director of revenue. Upon the successful completion of this
1 29 course of study, the assessor shall be granted regular
1 30 certification and shall be eligible to remain in office for
1 31 the balance of the assessor's six=year four=year term. All
1 32 expenses incurred in obtaining regular certification shall be
1 33 defrayed by the assessment expense fund.
1 34 Incumbent assessors who have served six four consecutive
1 35 years shall be placed on the register of individuals eligible
2 1 for appointment as assessor. In order to be appointed to the
2 2 position of assessor, the assessor shall comply with the
2 3 continuing education requirements. The number of credits
2 4 required for certification as eligible for appointment as
2 5 assessor in a jurisdiction other than where the assessor is
2 6 currently serving shall be prorated according to the
2 7 percentage of the assessor's term which is covered by the
2 8 continuing education requirements of section 441.8. The
2 9 credit necessary for certification for appointment is the
2 10 product of one hundred fifty multiplied by the quotient of the
2 11 number of months served of an assessor's term covered by the
2 12 continuing education requirements of section 441.8 divided by
2 13 seventy=two forty=eight. If the number of credits necessary
2 14 for certification for appointment as determined under this
2 15 paragraph results in a partial credit hour, the credit hour
2 16 shall be rounded to the nearest whole number.
2 17 Sec. 3. Section 441.8, unnumbered paragraphs 1, 6, and 7,
2 18 Code 2005, are amended to read as follows:
2 19 The term of office of an assessor appointed under this
2 20 chapter shall be for six four years. Appointments for each
2 21 succeeding term shall be made in the same manner as the
2 22 original appointment except that not more than one hundred
2 23 eighty days and not less than ninety days before the
2 24 expiration of the term of the assessor the conference board
2 25 shall hold a meeting to determine whether or not it desires to
2 26 reappoint the incumbent assessor to a new term.
2 27 Upon receiving credit equal to one hundred fifty hours of
2 28 classroom instruction during the assessor's current term of
2 29 office of which at least ninety sixty of the one hundred fifty
2 30 hours are from courses requiring an examination upon
2 31 conclusion of the course, the director of revenue shall
2 32 certify to the assessor's conference board that the assessor
2 33 is eligible to be reappointed to the position. For persons
2 34 appointed to complete an unexpired term, the number of credits
2 35 required to be certified as eligible for reappointment shall
3 1 be prorated according to the amount of time remaining in the
3 2 present term of the assessor. If the person was an assessor
3 3 in another jurisdiction, the assessor may carry forward any
3 4 credit hours received in the previous position in excess of
3 5 the number that would be necessary to be considered current in
3 6 that position.
3 7 Within each six=year four=year period following the
3 8 appointment of a deputy assessor, the deputy assessor shall
3 9 comply with this section except that upon the successful
3 10 completion of ninety sixty hours of classroom instruction of
3 11 which at least sixty forty of the ninety sixty hours are from
3 12 courses requiring an examination upon conclusion of the
3 13 course, the deputy assessor shall be certified by the director
3 14 of revenue as being eligible to remain in the position. If a
3 15 deputy assessor fails to comply with this section, the deputy
3 16 assessor shall be removed from the position until successful
3 17 completion of the required hours of credit. If a deputy is
3 18 appointed to the office of assessor, the hours of credit
3 19 obtained as deputy pursuant to this section shall be credited
3 20 to that individual as assessor and for the individual to be
3 21 reappointed at the expiration of the term as assessor, that
3 22 individual must obtain the credits which are necessary to
3 23 total the number of hours for reappointment.
3 24 Sec. 4. Section 441.10, unnumbered paragraph 3, Code 2005,
3 25 is amended to read as follows:
3 26 Incumbent deputy assessors who have served six four
3 27 consecutive years shall be placed on the register of
3 28 individuals eligible for appointment as deputy assessor. In
3 29 order to be appointed to the position of deputy assessor, the
3 30 deputy assessor shall comply with the continuing education
3 31 requirements. The number of credits required for
3 32 certification as eligible for appointment as a deputy assessor
3 33 in a jurisdiction other than where the deputy assessor is
3 34 currently serving shall be prorated according to the
3 35 percentage of the deputy assessor's term which is covered by
4 1 the continuing education requirements of section 441.8. The
4 2 credit necessary for certification for appointment is the
4 3 product of ninety sixty multiplied by the quotient of the
4 4 number of months served of a deputy assessor's term covered by
4 5 the continuing education requirements of section 441.8 divided
4 6 by seventy=two forty=eight. If the number of credits
4 7 necessary for certification for appointment as determined
4 8 under this paragraph results in a partial credit hour, the
4 9 credit hour shall be rounded to the nearest whole number.
4 10 Sec. 5. Section 441.11, Code 2005, is amended to read as
4 11 follows:
4 12 441.11 INCUMBENT DEPUTY ASSESSORS.
4 13 The director of revenue shall grant a restricted
4 14 certificate to any deputy assessor holding office as of
4 15 January 1, 1976. A deputy assessor possessing such a
4 16 certificate shall be considered eligible to remain in the
4 17 deputy's present position provided continuing education
4 18 requirements are met. To become eligible for another deputy
4 19 assessor position, a deputy assessor presently holding office
4 20 is required to obtain certification as provided for in
4 21 sections 441.5 and 441.10. The number of credit hours
4 22 required for certification as eligible for appointment as a
4 23 deputy in a jurisdiction other than where the deputy is
4 24 currently serving shall be prorated according to the completed
4 25 portion of the deputy's six=year four=year continuing
4 26 education period.
4 27 Sec. 6. Section 441.21, subsection 1, Code 2005, is
4 28 amended by adding the following new paragraph:
4 29 NEW PARAGRAPH. h. The assessor shall determine the value
4 30 of real property in accordance with rules adopted by the
4 31 department of revenue and in accordance with forms and
4 32 guidelines contained in the real property appraisal manual
4 33 prepared by the department as updated from time to time. Such
4 34 rules, forms, and guidelines shall not be inconsistent with or
4 35 change the means, as provided in this section, of determining
5 1 the actual, market, taxable, and assessed values. If the
5 2 director of revenue determines that an assessor has willfully
5 3 disregarded the rules of the department relating to valuation
5 4 of property or has willfully disregarded the forms and
5 5 guidelines contained in the real property appraisal manual,
5 6 the department shall instruct the treasurer of state to
5 7 withhold the road use tax fund apportionment authorized in
5 8 section 312.3 to the county or city, as applicable, until the
5 9 director of revenue determines that the assessor is in
5 10 compliance. The department shall adopt rules relating to
5 11 implementation of this paragraph including a procedure for the
5 12 withholding of road use tax fund apportionment in the case of
5 13 noncompliance by an assessor.
5 14 Sec. 7. Section 441.21, subsection 2, Code 2005, is
5 15 amended to read as follows:
5 16 2. In the event market value of the property being
5 17 assessed cannot be readily established in the foregoing
5 18 manner, then the assessor may determine the value of the
5 19 property using the other uniform and recognized appraisal
5 20 methods including its productive and earning capacity, if any,
5 21 industrial conditions, its cost, physical and functional
5 22 depreciation and obsolescence and replacement cost, and all
5 23 other factors which would assist in determining the fair and
5 24 reasonable market value of the property but the actual value
5 25 shall not be determined by use of only one such factor. The
5 26 following shall not be taken into consideration: Special
5 27 value or use value of the property to its present owner, and
5 28 the good will or value of a business which uses the property
5 29 as distinguished from the value of the property as property.
5 30 If an assessor wishes to determine the value of property using
5 31 other uniform and recognized appraisal methods, in the event
5 32 that market value of the property cannot be readily
5 33 established, the assessor shall request the director to permit
5 34 the use of another method. However, in assessing property
5 35 that is rented or leased to low=income individuals and
6 1 families as authorized by section 42 of the Internal Revenue
6 2 Code, as amended, and which section limits the amount that the
6 3 individual or family pays for the rental or lease of units in
6 4 the property, the assessor shall use the productive and
6 5 earning capacity from the actual rents received as a method of
6 6 appraisal and shall take into account the extent to which that
6 7 use and limitation reduces the market value of the property.
6 8 The assessor shall not consider any tax credit equity or other
6 9 subsidized financing as income provided to the property in
6 10 determining the assessed value. The property owner shall
6 11 notify the assessor when property is withdrawn from section 42
6 12 eligibility under the Internal Revenue Code. The property
6 13 shall not be subject to section 42 assessment procedures for
6 14 the assessment year for which section 42 eligibility is
6 15 withdrawn. This notification must be provided to the assessor
6 16 no later than March 1 of the assessment year or the owner will
6 17 be subject to a penalty of five hundred dollars for that
6 18 assessment year. The penalty shall be collected at the same
6 19 time and in the same manner as regular property taxes. Upon
6 20 adoption of uniform rules by the revenue department of revenue
6 21 or succeeding authority covering assessments and valuations of
6 22 such properties, said the valuation on such properties shall
6 23 be determined in accordance therewith with such rules and in
6 24 accordance with forms and guidelines contained in the real
6 25 property appraisal manual prepared by the department as
6 26 updated from time to time for assessment purposes to assure
6 27 uniformity, but such rules, forms, and guidelines shall not be
6 28 inconsistent with or change the foregoing means of determining
6 29 the actual, market, taxable and assessed values.
6 30 Sec. 8. Section 441.21, Code 2005, is amended by adding
6 31 the following new subsection:
6 32 NEW SUBSECTION. 13. Beginning with valuations established
6 33 on or after January 1, 2005, as used in this section,
6 34 "residential property" includes the land located in a
6 35 manufactured home community or mobile home park.
7 1 Sec. 9. NEW SECTION. 441.44A INCREASE IN ASSESSMENT
7 2 PROHIBITED IN CERTAIN CIRCUMSTANCES.
7 3 If the amount of an assessment protested is decreased by
7 4 the board of review, by the assessment appeal board as created
7 5 in 2005 Iowa Acts, by the district court, or by voluntary
7 6 court settlement, the assessor or local board of review shall
7 7 not increase the amount of such reduced assessment until the
7 8 next revaluation and reassessment year, except for increases
7 9 in assessment due solely to improvements made to the property
7 10 after the assessment amount was decreased and before the
7 11 revaluation and reassessment year.
7 12 Sec. 10. EFFECTIVE AND APPLICABILITY DATES AND TRANSITION.
7 13 1. The section of this Act amending Code section 435.22
7 14 applies to taxes due and payable for fiscal years beginning on
7 15 or after July 1, 2006.
7 16 2. a. The sections of this Act amending Code sections
7 17 441.5, 441.8, 441.10, and 441.11 take effect July 1, 2007, for
7 18 purposes of the transition to four=year terms and modified
7 19 continuing education requirements for city and county
7 20 assessors.
7 21 b. The term of office of all city and county assessors
7 22 holding office prior to December 31, 2007, shall expire on
7 23 December 31, 2007, and the conference board of each assessing
7 24 jurisdiction shall appoint an assessor for the term of office
7 25 beginning January 1, 2008. Beginning with terms of office
7 26 beginning January 1, 2008, and all subsequent terms, the term
7 27 of office for a city or county assessor shall be four years
7 28 unless an appointment is made to fill a vacancy for an
7 29 unexpired term.
7 30 3. The section of this Act enacting new subsection 13 to
7 31 Code section 441.21, being deemed of immediate importance,
7 32 takes effect upon enactment and applies retroactively to
7 33 January 1, 2005, for assessment years beginning on or after
7 34 that date.
7 35 EXPLANATION
8 1 This bill makes various changes to the law relating to
8 2 property taxation.
8 3 The bill increases from 20 cents to 30 cents the square
8 4 foot tax rate on mobile homes and manufactured homes located
8 5 in mobile home parks or manufactured home communities. This
8 6 section of the bill applies to taxes due and payable for
8 7 fiscal years beginning on or after July 1, 2006.
8 8 The bill changes the term of office of city or county
8 9 assessor from six years to four years and makes corresponding
8 10 changes to continuing education requirements. This portion of
8 11 the bill takes effect July 1, 2007. The bill provides
8 12 transition provisions for the change from six=year terms to
8 13 four=year terms.
8 14 The bill requires local assessors, when assessing property,
8 15 to use the forms and apply the guidelines contained in the
8 16 real property appraisal manual prepared by the department of
8 17 revenue. The bill provides that, if the market value of
8 18 property cannot be readily established, the assessor shall
8 19 request permission from the director of revenue to use other
8 20 uniform and recognized appraisal methods. If the department
8 21 determines that an assessor, when assessing property, is
8 22 willfully disregarding rules, forms, or guidelines of the
8 23 department, the department shall take steps to have the
8 24 county's or city's road use tax fund apportionment withheld by
8 25 the state until the assessor complies with the rules, forms,
8 26 and guidelines.
8 27 The bill provides that, for purposes of property
8 28 assessment, "residential property" includes the land located
8 29 in a manufactured home community or mobile home park. This
8 30 section of the bill takes effect upon enactment and applies
8 31 retroactively to assessment years beginning on or after
8 32 January 1, 2005.
8 33 The bill provides that if the amount of an assessment
8 34 protested is decreased by the board of review, by the property
8 35 assessment appeal board if created in 2005 Iowa Acts, by the
9 1 district court, or by voluntary court settlement, the assessor
9 2 or local board of review shall not increase the amount of such
9 3 reduced assessment until the next revaluation and reassessment
9 4 year, except for increases in assessment due solely to
9 5 improvements made to the property after the assessment amount
9 6 was decreased and before the revaluation and reassessment
9 7 year.
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