House Study Bill 634 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WAGNER) A BILL FOR An Act relating to property tax assessments by modifying 1 the requirements for certain notice and protest periods, 2 authorizing local boards of review to allow electronic 3 filing of assessment protests, and including applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6069HC (4) 84 md/sc

H.F. _____ Section 1. Section 427.1, subsection 18, Code Supplement 1 2011, is amended to read as follows: 2 18. Assessed value of exempt property. Each county and city 3 assessor shall determine the assessment value that would be 4 assigned to the property if it were taxable and value all tax 5 exempt property within the assessor’s jurisdiction. A summary 6 report of tax exempt property shall be filed with the director 7 of revenue and the local board of review on or before April 16 6 8 of each year on forms prescribed by the director of revenue. 9 Sec. 2. Section 427.16, subsection 5, Code 2011, is amended 10 to read as follows: 11 5. Real property designated for the tax exemption shall 12 be designated by April 15 5 of the assessment year in which 13 the fiscal year begins for which the exemption is granted. 14 Notification shall be sent to the county auditor and the 15 applicant. 16 Sec. 3. Section 437A.16A, subsection 1, paragraph b, Code 17 2011, is amended to read as follows: 18 b. Following the March 31 due date for the replacement 19 tax return as required by section 437A.8 , the director shall 20 annually determine the assessed value of the new cogeneration 21 facility exempt property by dividing the prior year’s 22 replacement tax liability attributable to that facility by 23 the current fiscal year’s consolidated taxing district rate 24 for the taxing district where the facility is located, then 25 multiplying the quotient by one thousand. The director shall 26 certify this value to the local assessor on or before April 10 27 5 of the current calendar year. The assessor shall apply this 28 certified value as a credit against the total assessed value of 29 the facility. The allowable credit shall not exceed the total 30 value of the new cogeneration facility as determined by the 31 local assessor for the assessment year and any excess credits 32 shall not be applied to any other assessment year. 33 Sec. 4. Section 441.23, Code 2011, is amended to read as 34 follows: 35 -1- LSB 6069HC (4) 84 md/sc 1/ 7

H.F. _____ 441.23 Notice of valuation. 1 If there has been an increase or decrease in the valuation 2 of the property, or upon the written request of the person 3 assessed, the assessor shall, at the time of making the 4 assessment, inform the person assessed, in writing, of the 5 valuation put upon the taxpayer’s property, and notify the 6 person, that if the person feels aggrieved, to appear before 7 the board of review and show why the assessment should be 8 changed. However, if the valuation of a class of property 9 is uniformly decreased, the assessor may notify the affected 10 property owners by publication in the official newspapers of 11 the county. The owners of real property shall be notified not 12 later than April 15 5 of any adjustment of the real property 13 assessment. 14 Sec. 5. Section 441.26, subsections 1 and 2, Code Supplement 15 2011, are amended to read as follows: 16 1. The director of revenue shall each year prescribe 17 the form of assessment roll to be used by all assessors in 18 assessing property, in this state, also the form of pages of 19 the assessor’s assessment book. The assessment rolls shall 20 be in a form that will permit entering, separately, the names 21 of all persons assessed, and shall also contain a notice in 22 substantially the following form: 23 If you are not satisfied that the foregoing assessment is 24 correct, you may file a protest against such assessment with 25 the board of review on or after April 16 6 , to and including May 26 5, of the year of the assessment, such protest to be confined 27 to the grounds specified in section 441.37 . 28 Dated: .. day of ... (month), .. (year) 29 ........... 30 County/City Assessor. 31 2. The notice in 1981 and each odd-numbered year thereafter 32 shall contain a statement that the assessments are subject 33 to equalization pursuant to an order issued by the director 34 of revenue, that the county auditor shall give notice on or 35 -2- LSB 6069HC (4) 84 md/sc 2/ 7

H.F. _____ before October 15 5 by publication in an official newspaper of 1 general circulation to any class of property affected by the 2 equalization order, and that the board of review shall be in 3 session from October 15 6 to November 15 5 to hear protests of 4 affected property owners or taxpayers whose valuations have 5 been adjusted by the equalization order. 6 Sec. 6. Section 441.28, Code 2011, is amended to read as 7 follows: 8 441.28 Assessment rolls —— change —— notice to taxpayer. 9 The assessment shall be completed not later than April 15 5 10 each year. If the assessor makes any change in an assessment 11 after it has been entered on the assessor’s rolls, the assessor 12 shall note on the roll, together with the original assessment, 13 the new assessment and the reason for the change, together with 14 the assessor’s signature and the date of the change. Provided, 15 however, in the event the assessor increases any assessment 16 the assessor shall give notice of the increase in writing to 17 the taxpayer by mail postmarked no later than April 15 5 . No 18 changes shall be made on the assessment rolls after April 15 19 5 except by order of the board of review or of the property 20 assessment appeal board, or by decree of court. 21 Sec. 7. Section 441.37, subsection 1, paragraph a, 22 unnumbered paragraph 1, Code Supplement 2011, is amended to 23 read as follows: 24 Any property owner or aggrieved taxpayer who is dissatisfied 25 with the owner’s or taxpayer’s assessment may file a protest 26 against such assessment with the board of review on or 27 after April 16 6 , to and including May 5, of the year of the 28 assessment. In any county which has been declared to be a 29 disaster area by proper federal authorities after March 1 30 and prior to May 20 of said year of assessment, the board of 31 review shall be authorized to remain in session until June 15 32 and the time for filing a protest shall be extended to and 33 include the period from May 25 to June 5 of such year. Said 34 protest shall , except as provided in subsection 2A, be in 35 -3- LSB 6069HC (4) 84 md/sc 3/ 7

H.F. _____ writing and signed by the one protesting or by the protester’s 1 duly authorized agent. The taxpayer may have an oral hearing 2 thereon if , except as provided in subsection 2A, request 3 therefor in writing is made at the time of filing the protest. 4 Said protest must be confined to one or more of the following 5 grounds: 6 Sec. 8. Section 441.37, Code Supplement 2011, is amended by 7 adding the following new subsection: 8 NEW SUBSECTION . 2A. For assessment years beginning on or 9 after January 1, 2013, the board of review may allow property 10 owners or aggrieved taxpayers who are dissatisfied with the 11 owner’s or taxpayer’s assessment to file a protest against 12 such assessment by electronic means. The board of review 13 may authorize electronic filing of assessment protests for 14 the protest period that begins April 6, the protest period 15 that begins October 6, or both. If the board of review 16 approves the use of electronic filing, the board of review 17 shall develop a secure program that is accessible through 18 the assessor’s internet site to allow for protests to be 19 filed electronically and shall include in the program a 20 method for providing electronic signatures for protests filed 21 electronically. All other requirements of this section for 22 an assessment protest to the board of review shall apply to a 23 protest filed electronically. If a board of review approves 24 the use of electronic filing, the availability of electronic 25 filing shall be clearly indicated on the assessment roll notice 26 provided to the property or owner and included in the published 27 equalization order notice. 28 Sec. 9. Section 441.49, subsection 2, paragraph a, Code 29 Supplement 2011, is amended to read as follows: 30 a. On or before October 15 5 the county auditor shall cause 31 to be published in official newspapers of general circulation 32 the final equalization order. The publication shall include, 33 in type larger than the remainder of the publication, the 34 following statement: 35 -4- LSB 6069HC (4) 84 md/sc 4/ 7

H.F. _____ Assessed values are equalized by the department of revenue 1 every two years. Local taxing authorities determine the final 2 tax levies and may reduce property tax rates to compensate for 3 any increase in valuation due to equalization. 4 Sec. 10. Section 441.49, subsection 4, Code Supplement 5 2011, is amended to read as follows: 6 4. The local board of review shall reconvene in special 7 session from October 15 6 to November 15 5 for the purpose of 8 hearing the protests of affected property owners or taxpayers 9 within the jurisdiction of the board whose valuation of 10 property if adjusted pursuant to the equalization order issued 11 by the director of revenue will result in a greater value than 12 permitted under section 441.21 . The board of review shall 13 accept protests only during the first ten days following the 14 date the local board of review reconvenes. The board of review 15 shall limit its review to only the timely filed protests. The 16 board of review may adjust all or a part of the percentage 17 increase ordered by the director of revenue by adjusting the 18 actual value of the property under protest to one hundred 19 percent of actual value. Any adjustment so determined by 20 the board of review shall not exceed the percentage increase 21 provided for in the director’s equalization order. The 22 determination of the board of review on filed protests is 23 final, subject to appeal to the property assessment appeal 24 board. A final decision by the local board of review, or the 25 property assessment appeal board, if the local board’s decision 26 is appealed, is subject to review by the director of revenue 27 for the purpose of determining whether the board’s actions 28 substantially altered the equalization order. In making the 29 review, the director has all the powers provided in chapter 30 421 , and in exercising the powers the director is not subject 31 to chapter 17A . Not later than fifteen days following the 32 adjournment of the board, the board of review shall submit to 33 the director of revenue, on forms prescribed by the director, a 34 report of all actions taken by the board of review during this 35 -5- LSB 6069HC (4) 84 md/sc 5/ 7

H.F. _____ session. 1 Sec. 11. APPLICABILITY. This Act applies to assessment 2 years beginning on or after January 1, 2013. 3 EXPLANATION 4 This bill relates to property tax assessments by modifying 5 the requirements for certain notice and protest periods and 6 authorizing local boards of review to allow assessment protests 7 to be filed by electronic means. 8 Current Code section 441.23 requires notification to owners 9 of real property of any adjustment in their property tax 10 assessment not later than April 15 of the assessment year. The 11 bill changes the date required for such notice to April 5. 12 Current law provides that any property owner or aggrieved 13 taxpayer who is dissatisfied with the owner’s or taxpayer’s 14 assessment may file a protest against such assessment with the 15 board of review on or after April 16, to and including May 5, of 16 the year of the assessment. The bill modifies that time period 17 to file a protest to on or after April 6, to and including May 18 5. 19 Current law requires the county auditor to give notice of 20 the equalization orders issued by the department of revenue on 21 or before October 15 by publication in an official newspaper 22 of general circulation to any class of property affected by 23 the equalization order. The bill moves that publication date 24 to October 5. Under current law, the board of review is in 25 session from October 15 to November 15 to hear protests of 26 affected property owners or taxpayers whose valuations have 27 been adjusted by the equalization order. The bill modifies 28 that protest period to be from October 6 to November 5. 29 The bill modifies certain dates relating to property tax 30 exemptions under Code chapter 427 and taxes on electricity and 31 natural gas providers under Code chapter 437A to account for 32 modifications made to the requirements for notice and protest 33 periods under Code chapter 441. 34 The bill provides that for assessment years beginning on 35 -6- LSB 6069HC (4) 84 md/sc 6/ 7

H.F. _____ or after January 1, 2013, the local board of review may allow 1 property owners or aggrieved taxpayers to file such protests 2 electronically. The bill allows the local board of review to 3 authorize electronic filing of assessment protests for the 4 regular protest period that begins April 6 under the bill, the 5 equalization protest period that begins October 6 under the 6 bill, or both. If the local board of review approves the use of 7 electronic filing, the board of review must develop a secure 8 program to allow for protests to be filed electronically and a 9 method for providing electronic signatures for protests filed 10 electronically and that is accessible through the assessor’s 11 internet site. If a local board of review approves the use of 12 electronic filing, the availability of electronic filing is 13 required to be clearly indicated on the assessment roll notice 14 and included in the published equalization order notice. 15 The bill applies to assessment years beginning on or after 16 January 1, 2013. 17 -7- LSB 6069HC (4) 84 md/sc 7/ 7