HSB 634 (LSB 6069HC (4) 84)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WAGNER)

A BILL FOR

An Act relating to property tax assessments by modifying the requirements for certain notice and protest periods, authorizing local boards of review to allow electronic filing of assessment protests, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427.1, subsection 18, Code Supplement 2011, is amended to read as follows:
   18.  Assessed value of exempt property.  Each county and city assessor shall determine the assessment value that would be assigned to the property if it were taxable and value all tax exempt property within the assessor’s jurisdiction. A summary report of tax exempt property shall be filed with the director of revenue and the local board of review on or before April 16
 
6 of each year on forms prescribed by the director of revenue.
    Sec. 2.  Section 427.16, subsection 5, Code 2011, is amended to read as follows:
   5.  Real property designated for the tax exemption shall be designated by April 15
 
5 of the assessment year in which the fiscal year begins for which the exemption is granted. Notification shall be sent to the county auditor and the applicant.
    Sec. 3.  Section 437A.16A, subsection 1, paragraph b, Code 2011, is amended to read as follows:
   b.  Following the March 31 due date for the replacement tax return as required by section 437A.8, the director shall annually determine the assessed value of the new cogeneration facility exempt property by dividing the prior year’s replacement tax liability attributable to that facility by the current fiscal year’s consolidated taxing district rate for the taxing district where the facility is located, then multiplying the quotient by one thousand. The director shall certify this value to the local assessor on or before April 10
 
5 of the current calendar year. The assessor shall apply this certified value as a credit against the total assessed value of the facility. The allowable credit shall not exceed the total value of the new cogeneration facility as determined by the local assessor for the assessment year and any excess credits shall not be applied to any other assessment year.
    Sec. 4.  Section 441.23, Code 2011, is amended to read as follows:
   441.23  Notice of valuation.
   If there has been an increase or decrease in the valuation of the property, or upon the written request of the person assessed, the assessor shall, at the time of making the assessment, inform the person assessed, in writing, of the valuation put upon the taxpayer’s property, and notify the person, that if the person feels aggrieved, to appear before the board of review and show why the assessment should be changed. However, if the valuation of a class of property is uniformly decreased, the assessor may notify the affected property owners by publication in the official newspapers of the county. The owners of real property shall be notified not later than April 15
 
5 of any adjustment of the real property assessment.
    Sec. 5.  Section 441.26, subsections 1 and 2, Code Supplement 2011, are amended to read as follows:
   1.  The director of revenue shall each year prescribe the form of assessment roll to be used by all assessors in assessing property, in this state, also the form of pages of the assessor’s assessment book. The assessment rolls shall be in a form that will permit entering, separately, the names of all persons assessed, and shall also contain a notice in substantially the following form:
  If you are not satisfied that the foregoing assessment is correct, you may file a protest against such assessment with the board of review on or after April 16
 
6, to and including May 5, of the year of the assessment, such protest to be confined to the grounds specified in section 441.37.

Dated:  .. day of ... (month), .. (year)

...........

County/City Assessor.
   2.  The notice in 1981 and each odd-numbered year thereafter shall contain a statement that the assessments are subject to equalization pursuant to an order issued by the director of revenue, that the county auditor shall give notice on or before October 15
 
5 by publication in an official newspaper of general circulation to any class of property affected by the equalization order, and that the board of review shall be in session from October 15
 
6 to November 15
 
5 to hear protests of affected property owners or taxpayers whose valuations have been adjusted by the equalization order.
    Sec. 6.  Section 441.28, Code 2011, is amended to read as follows:
   441.28  Assessment rolls —— change —— notice to taxpayer.
   The assessment shall be completed not later than April 15
 
5 each year. If the assessor makes any change in an assessment after it has been entered on the assessor’s rolls, the assessor shall note on the roll, together with the original assessment, the new assessment and the reason for the change, together with the assessor’s signature and the date of the change. Provided, however, in the event the assessor increases any assessment the assessor shall give notice of the increase in writing to the taxpayer by mail postmarked no later than April 15
 
5. No changes shall be made on the assessment rolls after April 15
 
5 except by order of the board of review or of the property assessment appeal board, or by decree of court.
    Sec. 7.  Section 441.37, subsection 1, paragraph a, unnumbered paragraph 1, Code Supplement 2011, 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 16
 
6, to and including May 5, 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. Said protest shall, except as provided in subsection 2A, be in writing and signed by the one protesting or by the protester’s duly authorized agent. The taxpayer may have an oral hearing thereon if, except as provided in subsection 2A, request therefor in writing is made at the time of filing the protest. Said protest must be confined to one or more of the following grounds:
    Sec. 8.  Section 441.37, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  For assessment years beginning on or after January 1, 2013, the board of review may allow property owners or aggrieved taxpayers who are dissatisfied with the owner’s or taxpayer’s assessment to file a protest against such assessment by electronic means. The board of review may authorize electronic filing of assessment protests for the protest period that begins April 6, the protest period that begins October 6, or both. If the board of review approves the use of electronic filing, the board of review shall develop a secure program that is accessible through the assessor’s internet site to allow for protests to be filed electronically and shall include in the program a method for providing electronic signatures for protests filed electronically. All other requirements of this section for an assessment protest to the board of review shall apply to a protest filed electronically. If a board of review approves the use of electronic filing, the availability of electronic filing shall be clearly indicated on the assessment roll notice provided to the property or owner and included in the published equalization order notice.
    Sec. 9.  Section 441.49, subsection 2, paragraph a, Code Supplement 2011, is amended to read as follows:
   a.  On or before October 15
 
5 the county auditor shall cause to be published in official newspapers of general circulation the final equalization order. The publication shall include, in type larger than the remainder of the publication, the following statement:
Assessed values are equalized by the department of revenue every two years. Local taxing authorities determine the final tax levies and may reduce property tax rates to compensate for any increase in valuation due to equalization.
    Sec. 10.  Section 441.49, subsection 4, Code Supplement 2011, is amended to read as follows:
   4.  The local board of review shall reconvene in special session from October 15
 
6 to November 15
 
5 for the purpose of hearing the protests of affected property owners or taxpayers within the jurisdiction of the board whose valuation of property if adjusted pursuant to the equalization order issued by the director of revenue will result in a greater value than permitted under section 441.21. The board of review shall accept protests only during the first ten days following the date the local board of review reconvenes. The board of review shall limit its review to only the timely filed protests. The board of review may adjust all or a part of the percentage increase ordered by the director of revenue by adjusting the actual value of the property under protest to one hundred percent of actual value. Any adjustment so determined by the board of review shall not exceed the percentage increase provided for in the director’s equalization order. The determination of the board of review on filed protests is final, subject to appeal to the property assessment appeal board. A final decision by the local board of review, or the property assessment appeal board, if the local board’s decision is appealed, is subject to review by the director of revenue for the purpose of determining whether the board’s actions substantially altered the equalization order. In making the review, the director has all the powers provided in chapter 421, and in exercising the powers the director is not subject to chapter 17A. Not later than fifteen days following the adjournment of the board, the board of review shall submit to the director of revenue, on forms prescribed by the director, a report of all actions taken by the board of review during this session.
    Sec. 11.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2013.
EXPLANATION
   This bill relates to property tax assessments by modifying the requirements for certain notice and protest periods and authorizing local boards of review to allow assessment protests to be filed by electronic means. 
   Current Code section 441.23 requires notification to owners of real property of any adjustment in their property tax assessment not later than April 15 of the assessment year. The bill changes the date required for such notice to April 5.
   Current law provides that 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 16, to and including May 5, of the year of the assessment. The bill modifies that time period to file a protest to on or after April 6, to and including May 5. 
   Current law requires the county auditor to give notice of the equalization orders issued by the department of revenue on or before October 15 by publication in an official newspaper of general circulation to any class of property affected by the equalization order. The bill moves that publication date to October 5. Under current law, the board of review is in session from October 15 to November 15 to hear protests of affected property owners or taxpayers whose valuations have been adjusted by the equalization order. The bill modifies that protest period to be from October 6 to November 5.
   The bill modifies certain dates relating to property tax exemptions under Code chapter 427 and taxes on electricity and natural gas providers under Code chapter 437A to account for modifications made to the requirements for notice and protest periods under Code chapter 441.
   The bill provides that for assessment years beginning on or after January 1, 2013, the local board of review may allow property owners or aggrieved taxpayers to file such protests electronically. The bill allows the local board of review to authorize electronic filing of assessment protests for the regular protest period that begins April 6 under the bill, the equalization protest period that begins October 6 under the bill, or both. If the local board of review approves the use of electronic filing, the board of review must develop a secure program to allow for protests to be filed electronically and a method for providing electronic signatures for protests filed electronically and that is accessible through the assessor’s internet site. If a local board of review approves the use of electronic filing, the availability of electronic filing is required to be clearly indicated on the assessment roll notice and included in the published equalization order notice.
   The bill applies to assessment years beginning on or after January 1, 2013.