House File 613 - Introduced HOUSE FILE BY TYMESON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to property valuation for property tax purposes 2 by modifying the definition of market value, requiring 3 personal notice of certain equalization orders, and modifying 4 the timeline of the property assessment protest process and 5 including an applicability date. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1522HH 83 8 md/sc/8 PAG LIN 1 1 Section 1. Section 441.17, subsection 7, Code 2009, is 1 2 amended to read as follows: 1 3 7. Submit on or beforeMayJune 1 of each year completed 1 4 assessment rolls to the board of review. 1 5 Sec. 2. Section 441.17, Code 2009, is amended by adding 1 6 the following new subsection: 1 7 NEW SUBSECTION. 12. Cooperate with and assist the auditor 1 8 in the preparation of property owner or taxpayer notices 1 9 pursuant to section 441.49. 1 10 Sec. 3. Section 441.21, subsection 1, paragraph b, 1 11 unnumbered paragraph 1, Code 2009, is amended to read as 1 12 follows: 1 13 The actual value of all property subject to assessment and 1 14 taxation shall be the fair and reasonable market value of such 1 15 property except as otherwise provided in this section. 1 16 "Market value" is defined as the fair and reasonable exchange 1 17 in the year in which the property is listed and valued between 1 18 a willing buyer and a willing seller, neither being under any 1 19 compulsion to buy or sell and each being familiar with all the 1 20 facts relating to the particular property. Sale prices of the 1 21 property or comparable property in normal transactions 1 22 reflecting market value, and the probable availability or 1 23 unavailability of persons interested in purchasing the 1 24 property, shall be taken into consideration in arriving at its 1 25 market value. In arriving at market value, sale prices of 1 26 property in abnormal transactions not reflecting market value 1 27 shall not be taken into account, or shall be adjusted to 1 28 eliminate the effect of factors which distort market value, 1 29 including but not limited to sales to immediate family of the 1 30 seller, foreclosure or other forced sales, contract sales, 1 31 discounted purchase transactions or purchase of adjoining land 1 32 or other land to be operated as a unit. In arriving at market 1 33 value, the advertised price of property that is for sale at 1 34 the time the assessment is made, or was previously for sale 1 35 but remains unsold at the time the assessment is made, shall 2 1 not be taken into account. 2 2 Sec. 4. Section 441.26, unnumbered paragraphs 2 and 3, 2 3 Code 2009, are amended to read as follows: 2 4 If you are not satisfied that the foregoing assessment is 2 5 correct, you may file a protest against such assessment with 2 6 the board of review on or after April 16, to and includingMay2 7 June 5, of the year of the assessment, such protest to be 2 8 confined to the grounds specified in section 441.37. 2 9 Dated: .... day of ...... (month), .... (year) 2 10 ..................... 2 11 County/City Assessor. 2 12 The notice in 1981 and each odd=numbered year thereafter 2 13 shall contain a statement that the assessments are subject to 2 14 equalization pursuant to an order issued by the director of 2 15 revenue, that the county auditor shall give notice on or 2 16 before October 15 by publication in an official newspaper of 2 17 general circulation to any class of property affected by the 2 18 equalization order, and written notice mailed to each property 2 19 owner or taxpayer whose valuation will increase as a result of 2 20 the equalization order, and that the board of review shall be 2 21 in session from October 15 to November 15 to hear protests of 2 22 affected property owners or taxpayers whose valuations have 2 23 been adjusted by the equalization order. 2 24 Sec. 5. Section 441.33, unnumbered paragraph 1, Code 2009, 2 25 is amended to read as follows: 2 26 The board of review shall be in session fromMayJune 1 2 27 through the period of time necessary to act on all protests 2 28 filed under section 441.37 but not later thanMay 31July 1 2 29 each year and for an additional period as required under 2 30 section 441.37 and shall hold as many meetings as are 2 31 necessary to discharge its duties. On or beforeMay 31July 1 2 32 in those years in which a session has not been extended as 2 33 required under section 441.37, the board shall return all 2 34 books, records, and papers to the assessor except undisposed 2 35 of protests and records pertaining to those protests. If it 3 1 has not completed its work byMay 31July 1, in those years in 3 2 which the session has not been extended under section 441.37, 3 3 the director of revenue may authorize the board of review to 3 4 continue in session for a period necessary to complete its 3 5 work, but the director of revenue shall not approve a 3 6 continuance extending beyondJulyAugust 15. On or beforeMay 3 7 31July 1 or on the final day of any extended session required 3 8 under section 441.37 or authorized by the director of revenue, 3 9 the board of review shall adjourn untilMayJune 1 of the 3 10 following year. It shall adopt its own rules of procedure, 3 11 elect its own chairperson from its membership, and keep 3 12 minutes of its meetings. The board shall appoint a clerk who 3 13 may be a member of the board or any other qualified person, 3 14 except the assessor or any member of the assessor's staff. It 3 15 may be reconvened by the director of revenue. All undisposed 3 16 protests in its hands onJulyAugust 15 shall be automatically 3 17 overruled and returned to the assessor together with its other 3 18 records. 3 19 Sec. 6. Section 441.37, subsection 1, unnumbered paragraph 3 20 1, Code 2009, is amended to read as follows: 3 21 Any property owner or aggrieved taxpayer who is 3 22 dissatisfied with the owner's or taxpayer's assessment may 3 23 file a protest against such assessment with the board of 3 24 review on or after April 16, to and includingMayJune 5, of 3 25 the year of the assessment. In any county which has been 3 26 declared to be a disaster area by proper federal authorities 3 27 after March 1 and prior toMayJune 20 of said year of 3 28 assessment, the board of review shall be authorized to remain 3 29 in session untilJuneJuly 15 and the time for filing a 3 30 protest shall be extended to and include the period fromMay3 31 June 25 toJuneJuly 5 of such year.SaidThe protest shall 3 32 be in writing and signed by the one protesting or by the 3 33 protester's duly authorized agent. The taxpayer may have an 3 34 oral hearingthereonon the protest if requesttherefor in 3 35 writingfor an oral hearing is made in writing at the time of 4 1 filing the protest.SaidThe protest must be confined to one 4 2 or more of the following grounds: 4 3 Sec. 7. Section 441.38, subsection 1, Code 2009, is 4 4 amended to read as follows: 4 5 1. Appeals may be taken from the action of the local board 4 6 of review with reference to protests of assessment, to the 4 7 district court of the county in which the board holds its 4 8 sessions within twenty days after its adjournment orMay 314 9 July 1, whichever date is later. Appeals may be taken from 4 10 the action of the property assessment appeal board to the 4 11 district court of the county where the property which is the 4 12 subject of the appeal is located within twenty days after the 4 13 letter of disposition of the appeal by the property assessment 4 14 appeal board is postmarked to the appellant. No new grounds 4 15 in addition to those set out in the protest to the local board 4 16 of review as provided in section 441.37, or in addition to 4 17 those set out in the appeal to the property assessment appeal 4 18 board, if applicable, can be pleaded. Additional evidence to 4 19 sustain those grounds may be introduced in an appeal from the 4 20 local board of review to the district court. However, no new 4 21 evidence to sustain those grounds may be introduced in an 4 22 appeal from the property assessment appeal board to the 4 23 district court. The assessor shall have the same right to 4 24 appeal and in the same manner as an individual taxpayer, 4 25 public body, or other public officer as provided in section 4 26 441.42. Appeals shall be taken by filing a written notice of 4 27 appeal with the clerk of district court. Filing of the 4 28 written notice of appeal shall preserve all rights of appeal 4 29 of the appellant. 4 30 Sec. 8. Section 441.45, Code 2009, is amended to read as 4 31 follows: 4 32 441.45 ABSTRACT TO STATE DEPARTMENT OF REVENUE. 4 33 1. The county assessor of each county and each city 4 34 assessor shall, on or beforeJulyAugust 1 of each year, make 4 35 out and transmit to the department of revenue an abstract of 5 1 the real property in the assessor's county or city, as the 5 2 case may be, and file a copy of the abstract with the county 5 3 auditor, in which the assessor shall set forth: 5 41.a. The number of acres of land and the aggregate 5 5 taxable values of the land, exclusive of city lots, returned 5 6 by the assessors, as corrected by the board of review. 5 72.b. The aggregate taxable values of real estate by 5 8 class in each township and city in the county, returned as 5 9 corrected by the board of review. 5 103.c. Other facts required by the director of revenue. 5 11 2. If a board of review continues in session beyondJune5 12 July 1, under sections 441.33 and 441.37, the abstract of the 5 13 real property shall be made out and transmitted to the 5 14 department of revenue within fifteen days after the date of 5 15 final adjournment by the board. 5 16 Sec. 9. Section 441.49, Code 2009, is amended by adding 5 17 the following new unnumbered paragraph after unnumbered 5 18 paragraph 3: 5 19 NEW UNNUMBERED PARAGRAPH. On or before October 15, the 5 20 county auditor, with cooperation and assistance of the county 5 21 assessor and the city assessor, if applicable, shall in 5 22 writing notify each property owner or taxpayer whose valuation 5 23 will be increased as a result of the equalization order. The 5 24 notice shall include the statement required to be published 5 25 pursuant to this section and shall state the percentage 5 26 increase that will be applied to the property, the property 5 27 owner's or taxpayer's right to protest the increase, and the 5 28 dates that protests will be heard by the board of review. 5 29 Sec. 10. APPLICABILITY DATE. This Act applies to 5 30 assessment years beginning on or after January 1, 2010. 5 31 EXPLANATION 5 32 This bill makes changes relating to the valuation of 5 33 property for property tax purposes. 5 34 The bill provides that an assessor shall not take into 5 35 account the advertised price of property that is for sale at 6 1 the time the assessment is made, or was previously for sale 6 2 but remains unsold at the time the assessment is made, when 6 3 determining a property's market value. 6 4 The bill provides property owners or taxpayers wishing to 6 5 appeal an assessment to the local board of review an 6 6 additional 30 days in which to appeal the assessment. All 6 7 corresponding dates relating to the appeal process are moved 6 8 back 30 days. 6 9 The bill requires the county auditor, with the assistance 6 10 and cooperation of the city or county assessor, to provide the 6 11 property owner or taxpayer written notice of an increase in 6 12 valuation due to an equalization order. 6 13 The bill applies to assessment years beginning on or after 6 14 January 1, 2010. 6 15 LSB 1522HH 83 6 16 md/sc/8