H.F. _____ Section 1. Section 421.1A, subsection 6, Code 2013, is 1 amended to read as follows: 2 6. The members of the property assessment appeal board 3 shall receive compensation from the state commensurate with 4 the salary of a district judge through December 31, 2013 . The 5 members of the board shall be considered state employees for 6 purposes of salary and benefits. The members of the board and 7 any employees of the board, when required to travel in the 8 discharge of official duties, shall be paid their actual and 9 necessary expenses incurred in the performance of duties. 10 Sec. 2. Section 421.1A, subsection 7, Code 2013, is amended 11 by striking the subsection. 12 Sec. 3. Section 441.21, subsection 3, Code 2013, is amended 13 to read as follows: 14 3. a. “Actual value” , “taxable value” , or “assessed 15 value” as used in other sections of the Code in relation to 16 assessment of property for taxation shall mean the valuations 17 as determined by this section ; however, other provisions of 18 the Code providing special methods or formulas for assessing 19 or valuing specified property shall remain in effect, but this 20 section shall be applicable to the extent consistent with such 21 provisions. The assessor and department of revenue shall 22 disclose at the written request of the taxpayer all information 23 in any formula or method used to determine the actual value of 24 the taxpayer’s property. 25 b. The burden of proof shall be upon any complainant 26 attacking such valuation as excessive, inadequate, inequitable, 27 or capricious; however, in protest or appeal proceedings when 28 the complainant offers competent evidence by at least two 29 disinterested witnesses that the market value of the property 30 is less than the market value determined by the assessor, the 31 burden of proof thereafter shall be upon the officials or 32 persons seeking to uphold such valuation to be assessed. 33 Sec. 4. Section 441.37, subsection 1, paragraphs a and b, 34 Code 2013, are amended to read as follows: 35 -1- LSB 2507HC (4) 85 md/sc 1/ 7

H.F. _____ a. Any property owner or aggrieved taxpayer who is 1 dissatisfied with the owner’s or taxpayer’s assessment may file 2 a protest against such assessment with the board of review on 3 or after April 16, to and including May 5, of the year of the 4 assessment. In any county which has been declared to be a 5 disaster area by proper federal authorities after March 1 and 6 prior to May 20 of said year of assessment, the board of review 7 shall be authorized to remain in session until June 15 and the 8 time for filing a protest shall be extended to and include the 9 period from May 25 to June 5 of such year. Said The protest 10 shall be in writing and signed by the one protesting or by the 11 protester’s duly authorized agent. The taxpayer may have an 12 oral hearing thereon on the protest if request therefor for the 13 oral hearing is made in writing is made at the time of filing 14 the protest. Said The protest must be confined to one or more 15 of the following grounds: 16 (1) For odd-numbered assessment years and for even-numbered 17 assessment years for properties having a change in actual value 18 from the previous assessment year: 19 (a) That said assessment is not equitable as compared with 20 assessments of other like property in the taxing district 21 assessing jurisdiction . When this ground is relied upon as the 22 basis of a protest the legal description and assessments of a 23 representative number of comparable properties, as described 24 by the aggrieved taxpayer shall be listed on the protest, 25 otherwise said protest shall not be considered on this ground 26 consideration shall be given to whether the other like property 27 in the assessing jurisdiction was appraised using a different 28 appraisal methodology than the methodology used to appraise the 29 property that is the subject of the protest . 30 (2) (b) That the property is assessed for more than the 31 value authorized by law , stating . When this ground is relied 32 upon, the specific amount which the protesting party believes 33 the property to be overassessed, and the amount which the party 34 considers to be its actual value and the amount the party 35 -2- LSB 2507HC (4) 85 md/sc 2/ 7

H.F. _____ considers a fair assessment shall be stated . 1 (3) (c) That the property is not assessable, is exempt 2 from taxes, or is misclassified and stating the reasons for the 3 protest. 4 (4) (d) That there is an error in the assessment and state 5 the specific alleged error. When this ground is relied upon, 6 it may include but is not limited to listing errors, clerical 7 or mathematical errors, or other errors that result in an error 8 in the assessment. 9 (5) (e) That there is fraud in the assessment which shall 10 be specifically stated. 11 (2) For even-numbered assessment years for properties 12 having no change in assessment from the previous assessment 13 year, that there has been a decrease in actual value from the 14 previous assessment year. When this ground is relied upon, 15 the protesting party shall provide specific evidence that the 16 market value of the property is less than the actual value of 17 the property as determined by the assessor for that assessment 18 year. Such protest shall be made under the provisions of 19 section 441.35, subsection 2, but in the same manner and upon 20 the same terms as described in this section. 21 b. In addition to the above, the property owner may protest 22 annually to the board of review under the provisions of section 23 441.35 , but such protest shall be in the same manner and upon 24 the same terms as heretofore prescribed in this section . The 25 burden of proof for all protests filed under this section shall 26 be as stated in section 441.21, subsection 3, paragraph “b” . 27 Sec. 5. Section 441.37A, subsection 1, paragraph b, Code 28 2013, is amended to read as follows: 29 b. For an appeal to the property assessment appeal board to 30 be valid, written notice must be filed by the party appealing 31 the decision with the secretary of the property assessment 32 appeal board within twenty days after the date the board of 33 review’s letter of disposition of the appeal is postmarked to 34 the party making the protest adjournment of the local board 35 -3- LSB 2507HC (4) 85 md/sc 3/ 7

H.F. _____ of review or May 31, whichever is later . The written notice 1 of appeal shall include a petition setting forth the basis of 2 the appeal and the relief sought. No new grounds in addition 3 to those set out in the protest to the local board of review 4 as provided in section 441.37 can be pleaded, but additional 5 evidence to sustain those grounds may be introduced. The 6 assessor shall have the same right to appeal to the assessment 7 appeal board as an individual taxpayer, public body, or other 8 public officer as provided in section 441.42 . An appeal to the 9 board is a contested case under chapter 17A . 10 Sec. 6. Section 441.37A, subsection 2, paragraph a, Code 11 2013, is amended to read as follows: 12 a. A party to the appeal may request a hearing or the appeal 13 may proceed without a hearing. If a hearing is requested, 14 the appellant and the local board of review from which the 15 appeal is taken shall be given at least thirty days’ written 16 notice by the property assessment appeal board of the date 17 the appeal shall be heard and the local board of review may 18 be present and participate at such hearing. Notice to all 19 affected taxing districts shall be deemed to have been given 20 when written notice is provided to the local board of review. 21 The requirement of thirty days’ written notice may be waived 22 by mutual agreement of all parties to the appeal. Failure by 23 the appellant to appear at the property assessment appeal board 24 hearing shall be grounds for dismissal of the appeal unless 25 a continuance is granted to the appellant. If an appeal is 26 dismissed for failure to appear, the property assessment appeal 27 board shall have no jurisdiction to consider any subsequent 28 appeal on the appellant’s protest. 29 Sec. 7. Section 441.37A, subsection 3, paragraph a, Code 30 2013, is amended to read as follows: 31 a. The board member considering the appeal shall determine 32 anew all questions arising before the local board of review 33 which relate to the liability of the property to assessment or 34 the amount thereof. All of the evidence shall be considered 35 -4- LSB 2507HC (4) 85 md/sc 4/ 7

H.F. _____ and there shall be no presumption as to the correctness of the 1 valuation of assessment appealed from. The burden of proof 2 for all appeals before the board shall be as stated in section 3 441.21, subsection 3, paragraph “b” . The property assessment 4 appeal board shall make a decision in each appeal filed with 5 the board. If the appeal is considered by less than a majority 6 of the board, the determination made by that member shall 7 be forwarded to the full board for approval, rejection, or 8 modification. If the initial determination is rejected by the 9 board, it shall be returned for reconsideration to the board 10 member making the initial determination. Any deliberation 11 of the board regarding an initial determination shall be 12 confidential. 13 Sec. 8. REPEAL. 2005 Iowa Acts, chapter 150, section 134, 14 is repealed. 15 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 Sec. 10. APPLICABILITY. The following provisions of this 18 Act apply to assessment years beginning on or after January 1, 19 2014: 20 1. The section of this Act amending section 441.37. 21 2. The sections of this Act amending section 441.37A. 22 EXPLANATION 23 This bill relates to the protest and appeal of property 24 assessments. 25 The bill amends provisions relating to the grounds upon 26 which a property assessment protest may be brought under Code 27 section 441.37. The bill specifies the grounds for protest 28 in an odd-numbered assessment year (reassessment year), the 29 grounds for protest in an even-numbered assessment year for 30 those properties having a change in actual value from the 31 previous assessment year, and the grounds for protest in an 32 even-numbered assessment year for those properties having no 33 change in actual value from the previous assessment year. 34 Under current law, for an appeal to the property assessment 35 -5- LSB 2507HC (4) 85 md/sc 5/ 7

H.F. _____ appeal board to be valid, written notice must be filed by the 1 party appealing the decision with the secretary of the property 2 assessment appeal board within 20 days after the date the 3 local board of review’s letter of disposition of the appeal is 4 postmarked to the party making the protest. The bill changes 5 the deadline for filing a valid appeal to within 20 days after 6 the date of adjournment of the local board of review or May 31, 7 whichever is later. 8 Current Code section 441.37A provides that if a hearing is 9 requested in an appeal before the property assessment appeal 10 board, the appellant and the local board of review from which 11 the appeal is taken must be given at least 30 days’ written 12 notice by the property assessment appeal board of the date the 13 appeal shall be heard. The bill provides that the requirement 14 of 30 days’ written notice may be waived by mutual agreement 15 of all parties to the appeal. 16 The bill specifies that the burden of proof in protests 17 to the local board of review or in appeals to the property 18 assessment appeal board shall be as provided in current Code 19 section 441.21(3). Current Code section 441.21(3) states that 20 the burden of proof shall be upon any complainant attacking the 21 valuation as excessive, inadequate, inequitable, or capricious; 22 however, in protest or appeal proceedings when the complainant 23 offers competent evidence by at least two disinterested 24 witnesses that the market value of the property is less than 25 the market value determined by the assessor, the burden of 26 proof thereafter shall be upon the officials or persons seeking 27 to uphold such valuation to be assessed. 28 The bill repeals 2005 Iowa Acts, chapter 150, section 134, 29 which provided for the repeal of the property assessment appeal 30 board on July 1, 2013, and makes a corresponding change related 31 to the salary to be paid to members of the property assessment 32 appeal board. The bill also strikes provisions relating to 33 the property assessment appeal board review committee that was 34 established on January 1, 2012, and filed its report with the 35 -6- LSB 2507HC (4) 85 md/sc 6/ 7