Senate Study Bill 3199 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act relating to property taxation by modifying provisions 1 relating to equalization orders and requiring certain 2 equalization order notices. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6115XC (2) 84 md/sc
S.F. _____ Section 1. Section 441.26, subsection 2, Code Supplement 1 2011, is amended to read as follows: 2 2. The notice in 1981 and each odd-numbered year thereafter 3 shall contain a statement that the assessments are subject to 4 equalization pursuant to an order issued by the director of 5 revenue, that the county auditor shall give notice on or before 6 October 15 by both individual notices mailed to each commercial 7 or industrial property owner or taxpayer whose valuations have 8 been adjusted by the equalization order and publication in 9 an official newspaper of general circulation to any class of 10 property affected by the equalization order, and that the board 11 of review shall be in session from October 15 to November 15 to 12 hear protests of affected property owners or taxpayers whose 13 valuations have been adjusted by the equalization order. 14 Sec. 2. Section 441.49, Code Supplement 2011, is amended by 15 adding the following new subsection: 16 NEW SUBSECTION . 1A. If a property owner or aggrieved 17 taxpayer who is dissatisfied with the owner’s or taxpayer’s 18 assessment files a protest against such assessment with the 19 board of review during the board of review’s session specified 20 in section 441.33 and the board of review’s final disposition 21 of the protest results in a reduction in the assessment, the 22 assessment of such parcel shall not be subject to an increase 23 in valuation as the result of an equalization order of the 24 director of revenue issued during the same assessment year for 25 which the owner’s or taxpayer’s assessment was reduced by the 26 local board of review. 27 Sec. 3. Section 441.49, subsection 2, paragraph a, Code 28 Supplement 2011, is amended to read as follows: 29 a. On or before October 15 the county auditor shall notify 30 by mail each commercial or industrial property owner or 31 taxpayer whose valuations have been adjusted by an equalization 32 order and cause to be published in official newspapers of 33 general circulation the final equalization order. The 34 individual notices mailed to each affected commercial or 35 -1- LSB 6115XC (2) 84 md/sc 1/ 3
S.F. _____ industrial property owner or taxpayer and the publication shall 1 include, in type larger than the remainder of the notice or 2 publication, the following statement statements : 3 Assessed values are equalized by the department of revenue 4 every two years. Local taxing authorities determine the final 5 tax levies and may reduce property tax rates to compensate 6 for any increase in valuation due to equalization. If you 7 are not satisfied that your assessment as adjusted by the 8 equalization order is correct, you may file a protest against 9 such assessment with the board of review on or after October 10 15, to and including October 25. 11 EXPLANATION 12 This bill relates to property taxation by modifying 13 provisions relating to equalization orders and requiring 14 certain equalization order notices. 15 Current Code section 441.47 requires the department of 16 revenue to, in each odd-numbered year, order the equalization 17 of the levels of assessment of each class of property in the 18 several assessing jurisdictions by adding to or deducting 19 from the valuation of each class of property if the aggregate 20 assessed valuation of that class of property is at least 5 21 percent above or below the valuation of that class of property 22 statewide. Current Code section 441.26 requires the county 23 auditor to publish notice of such final equalization order 24 in an official newspaper of general circulation. The bill 25 requires the county auditor, in addition to the published 26 notice, to provide individual notices mailed to each commercial 27 or industrial property owner or taxpayer whose valuations 28 have been adjusted by the equalization order. The bill also 29 specifies certain statements that must appear on such notices, 30 including a statement of the owner’s or taxpayer’s ability 31 to file a protest against an assessment adjusted by the 32 equalization order with the local board of review if the owner 33 or taxpayer is not satisfied with the adjusted assessment. 34 The bill provides that if a property owner or aggrieved 35 -2- LSB 6115XC (2) 84 md/sc 2/ 3
S.F. _____ taxpayer who is dissatisfied with the owner’s or taxpayer’s 1 assessment files a protest against such assessment with the 2 board of review during the board of review’s session specified 3 in current Code section 441.33 and the board of review’s final 4 disposition of the protest results in a reduction in the 5 assessment, the assessment of such parcel shall not be subject 6 to an increase in valuation as the result of an equalization 7 order of the director of revenue issued during the same 8 assessment year for which the owner’s or taxpayer’s assessment 9 was reduced by the local board of review. 10 -3- LSB 6115XC (2) 84 md/sc 3/ 3