House File 192 - Introduced HOUSE FILE 192 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 29) A BILL FOR An Act relating to property tax assessment by modifying 1 requirements relating to property assessment notices and 2 equalization order notices, modifying provisions relating to 3 property assessment protests and assessor informal reviews, 4 and including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1113HV (1) 86 md/sc

H.F. 192 Section 1. Section 441.26, subsection 1, Code 2015, is 1 amended to read as follows: 2 1. The director of revenue shall each year prescribe 3 the form of assessment roll to be used by all assessors in 4 assessing property, in this state, also the form of pages of 5 the assessor’s assessment book. The assessment rolls shall 6 be in a form that will permit entering, separately, the names 7 of all persons assessed, and shall also contain a notice in 8 substantially the following form: 9 If you are not satisfied that the foregoing assessment is 10 correct, you may contact the assessor on or after April 1 2 , 11 to and including May 4 April 25 , of the year of the assessment 12 to request an informal review of the assessment pursuant to 13 section 441.30 . 14 If you are not satisfied that the foregoing assessment is 15 correct, you may file a protest against such assessment with 16 the board of review on or after April 7 2 , to and including May 17 5 April 30 , of the year of the assessment, such protest to be 18 confined to the grounds specified in section 441.37 . 19 Dated: .. day of ... (month), .. (year) 20 ........... 21 County/City Assessor. 22 Sec. 2. Section 441.26, subsection 2, Code 2015, is amended 23 to read as follows: 24 2. The notice in 1981 and each odd-numbered year thereafter 25 shall contain a statement that the assessments are subject 26 to equalization pursuant to an order issued by the director 27 of revenue, that the county auditor shall give notice on or 28 before October 15 8 by publication in an official newspaper of 29 general circulation to any class of property affected by the 30 equalization order, that the county auditor shall give notice 31 by mail postmarked on or before October 8 to each property 32 owner or taxpayer whose valuation has been increased by the 33 equalization order, and that the board of review shall be in 34 session from October 15 to November 15 30 to hear protests of 35 -1- LSB 1113HV (1) 86 md/sc 1/ 9

H.F. 192 affected property owners or taxpayers whose valuations have 1 been adjusted by the equalization order. 2 Sec. 3. Section 441.28, Code 2015, is amended to read as 3 follows: 4 441.28 Assessment rolls —— change —— notice to taxpayer. 5 The assessment shall be completed not later than April 1 each 6 year. If the assessor makes any change in an assessment after 7 it has been entered on the assessor’s rolls, the assessor shall 8 note on the roll, together with the original assessment, the 9 new assessment and the reason for the change, together with the 10 assessor’s signature and the date of the change. Provided, 11 however, in the event the assessor increases any assessment the 12 assessor shall give notice of the increase in writing to the 13 taxpayer by mail postmarked no later than April 1. No changes 14 shall be made on the assessment rolls after April 1 except by 15 written agreement of the taxpayer and assessor under section 16 441.30, by order of the board of review or of the property 17 assessment appeal board, or by decree of court. 18 Sec. 4. Section 441.30, subsections 1 and 2, Code 2015, are 19 amended to read as follows: 20 1. Any property owner or aggrieved taxpayer who is 21 dissatisfied with the owner’s or taxpayer’s assessment may 22 contact the assessor by telephone or in writing by paper or 23 electronic medium on or after April 1 2 , to and including May 24 4 April 25 , of the year of the assessment to inquire about the 25 specifics and accuracy of the assessment. Such an inquiry may 26 also include a request for an informal review of the assessment 27 by the assessor under one or more of the grounds for protest 28 authorized under section 441.37 for the same assessment year. 29 2. In response to an inquiry under subsection 1 , if the 30 assessor, following an informal review, determines that the 31 assessment was incorrect under one or more of the grounds for 32 protest authorized under section 441.37 for the same assessment 33 year, the assessor may , on or before April 25, recommend that 34 the property owner or aggrieved taxpayer file a protest with 35 -2- LSB 1113HV (1) 86 md/sc 2/ 9

H.F. 192 the local board of review and may file a recommendation with 1 the local board of review related to the informal review , or 2 may enter into a signed written agreement with the property 3 owner or aggrieved taxpayer authorizing the assessor to correct 4 or modify the assessment according to the agreement of the 5 parties . 6 Sec. 5. Section 441.35, subsection 2, Code 2015, is amended 7 to read as follows: 8 2. In any year after the year in which an assessment has 9 been made of all of the real estate in any taxing district, the 10 board of review shall meet as provided in section 441.33 , and 11 where the board finds the same has changed in value, the board 12 shall revalue and reassess any part or all of the real estate 13 contained in such taxing district, and in such case, the board 14 shall determine the actual value as of January 1 of the year of 15 the revaluation and reassessment and compute the taxable value 16 thereof. If the assessment of any such property is raised 17 changed , or any property is added to the tax list by the board, 18 the clerk shall give notice in the manner provided in section 19 441.36 . However, if the assessment of If all property in any 20 taxing district is raised revalued and reassessed , the board 21 may shall, in addition to notices required to be provided in 22 the manner specified in section 441.36, instruct the clerk to 23 give immediate notice by one publication in one of the official 24 newspapers located in the taxing district , and such published 25 notice shall take the place of the mailed notice provided for 26 in section 441.36 , but all other provisions of that section 27 shall apply . The decision of the board as to the foregoing 28 matters shall be subject to appeal to the property assessment 29 appeal board within the same time and in the same manner as 30 provided in section 441.37A and to the district court within 31 the same time and in the same manner as provided in section 32 441.38 . 33 Sec. 6. Section 441.37, subsection 1, paragraph a, 34 unnumbered paragraph 1, Code 2015, is amended to read as 35 -3- LSB 1113HV (1) 86 md/sc 3/ 9

H.F. 192 follows: 1 Any property owner or aggrieved taxpayer who is dissatisfied 2 with the owner’s or taxpayer’s assessment may file a protest 3 against such assessment with the board of review on or after 4 April 7 2 , to and including May 5 April 30 , of the year of the 5 assessment. In any county which has been declared to be a 6 disaster area by proper federal authorities after March 1 and 7 prior to May 20 of said year of assessment, the board of review 8 shall be authorized to remain in session until June 15 and the 9 time for filing a protest shall be extended to and include the 10 period from May 25 to June 5 of such year. The protest shall 11 be in writing and, except as provided in subsection 3 , signed 12 by the one protesting or by the protester’s duly authorized 13 agent. The taxpayer may have an oral hearing on the protest if 14 the request for the oral hearing is made in writing at the time 15 of filing the protest. The protest must be confined to one or 16 more of the following grounds: 17 Sec. 7. Section 441.37, subsection 3, Code 2015, is amended 18 to read as follows: 19 3. For assessment years beginning on or after January 20 1, 2014, the board of review may allow property owners or 21 aggrieved taxpayers who are dissatisfied with the owner’s or 22 taxpayer’s assessment to file a protest against such assessment 23 by electronic means. Electronic filing of assessment protests 24 may be authorized for the protest period that begins April 25 7 2 , the protest period that begins October 15 9 , or both. 26 Except for the requirement that a protest be signed, all other 27 requirements of this section for an assessment protest to the 28 board of review shall apply to a protest filed electronically. 29 If electronic filing is authorized by the local board of 30 review, the availability of electronic filing shall be clearly 31 indicated on the assessment roll notice provided to the 32 property owner or taxpayer and included in both the published 33 equalization order notice and the equalization order notice 34 mailed to the property owner or taxpayer if applicable . 35 -4- LSB 1113HV (1) 86 md/sc 4/ 9

H.F. 192 Sec. 8. Section 441.49, subsection 1, paragraph b, Code 1 2015, is amended to read as follows: 2 b. However, an assessing jurisdiction may request the 3 director to permit the use of an alternative method of 4 applying the equalization order to the property values in the 5 assessing jurisdiction, provided that the final valuation 6 shall be equivalent to the director’s equalization order. The 7 assessing jurisdiction shall notify the county auditor of 8 the request for the use of an alternative method of applying 9 the equalization order and the director’s disposition of the 10 request. The request to use an alternative method of applying 11 the equalization order, including procedures for notifying 12 affected property owners and appealing valuation adjustments, 13 shall be made within ten days from the date the county auditor 14 receives the equalization order and the valuation adjustments, 15 and appeal procedures shall be completed by November 30 16 December 15 of the year of the equalization order. Compliance 17 with the provisions of section 441.21 is sufficient grounds 18 for the director to permit the use of an alternative method of 19 applying the equalization order. 20 Sec. 9. Section 441.49, subsections 2 and 4, Code 2015, are 21 amended to read as follows: 22 2. a. On or before October 15 8 the county auditor shall 23 cause to be published in official newspapers of general 24 circulation the final equalization order. The county auditor 25 shall also notify each property owner or taxpayer whose 26 valuation has been increased by the final equalization order 27 by mail postmarked on or before October 8. The publication 28 and the individual notice mailed to each property owner or 29 taxpayer whose valuation has been increased shall include, in 30 type larger than the remainder of the publication or notice , 31 the following statement statements : 32 Assessed values are equalized by the department of revenue 33 every two years. Local taxing authorities determine the final 34 tax levies and may reduce property tax rates to compensate 35 -5- LSB 1113HV (1) 86 md/sc 5/ 9

H.F. 192 for any increase in valuation due to equalization. If you 1 are not satisfied that your assessment as adjusted by the 2 equalization order is correct, you may file a protest against 3 such assessment with the board of review on or after October 4 9, to and including October 31. 5 b. Failure to publish the equalization order or to notify 6 property owners or taxpayers of the equalization order has no 7 effect upon the validity of the orders. 8 4. The local board of review shall reconvene in special 9 session from October 15 to November 15 30 for the purpose of 10 hearing the protests of affected property owners or taxpayers 11 within the jurisdiction of the board whose valuation of 12 property if adjusted pursuant to the equalization order issued 13 by the director of revenue will result in a greater value than 14 permitted under section 441.21 . The board of review shall 15 accept protests only during the first ten days following the 16 date the local board of review reconvenes period of time from 17 October 9, to and including October 31 . The board of review 18 shall limit its review to only the timely filed protests. The 19 board of review may adjust all or a part of the percentage 20 increase ordered by the director of revenue by adjusting the 21 actual value of the property under protest to one hundred 22 percent of actual value. Any adjustment so determined by 23 the board of review shall not exceed the percentage increase 24 provided for in the director’s equalization order. The 25 determination of the board of review on filed protests is 26 final, subject to appeal to the property assessment appeal 27 board. A final decision by the local board of review, or the 28 property assessment appeal board, if the local board’s decision 29 is appealed, is subject to review by the director of revenue 30 for the purpose of determining whether the board’s actions 31 substantially altered the equalization order. In making the 32 review, the director has all the powers provided in chapter 33 421 , and in exercising the powers the director is not subject 34 to chapter 17A . Not later than fifteen days following the 35 -6- LSB 1113HV (1) 86 md/sc 6/ 9

H.F. 192 adjournment of the board, the board of review shall submit to 1 the director of revenue, on forms prescribed by the director, a 2 report of all actions taken by the board of review during this 3 session. 4 Sec. 10. IMPLEMENTATION OF ACT. Section 25B.2, subsection 5 3, shall not apply to this Act. 6 Sec. 11. APPLICABILITY. This Act applies to assessment 7 years beginning on or after January 1, 2016. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to property assessment for purposes of 12 property taxation by modifying provisions relating to property 13 assessment notices and equalization order notices and by 14 modifying provisions relating to property assessment protests 15 and assessor informal reviews. 16 Current Code section 441.30 allows a property owner or 17 taxpayer to contact the assessor to inquire about the specifics 18 and accuracy of the assessment and to request an informal 19 review of the assessment on or after April 1 to and including 20 May 4 of the assessment year. The bill modifies that period 21 of time to be on or after April 2 to and including April 25. 22 The bill also authorizes a change to the assessment on or 23 before April 25 if the owner or taxpayer enters into a written 24 agreement with the assessor. This authority is in addition 25 to the assessor’s current authority to recommend that the 26 taxpayer file a protest with the local board of review and file 27 a recommendation in regards to such a protest. 28 The bill also modifies the period of time for filing an 29 assessment protest with the local board of review from the 30 current April 7 to May 5, to a period of time beginning April 2 31 to and including April 30. 32 Current Code section 441.26 requires notices of equalization 33 orders to be published in the newspaper on or before 34 October 15. The bill modifies the publication deadline for 35 -7- LSB 1113HV (1) 86 md/sc 7/ 9

H.F. 192 equalization order notices to October 8 and requires that 1 individual notices be mailed by October 8 to each owner or 2 taxpayer whose valuation has been increased by the equalization 3 order. The bill provides that the notice shall contain the 4 statement currently required in published notices and amends 5 Code section 441.49 to also require that the notice contain a 6 statement of the owner’s or taxpayer’s ability to file with the 7 local board of review a protest against an assessment adjusted 8 by the equalization order. 9 The bill also amends Code section 441.49 to modify the 10 period of time for taxpayer protests of an equalization order 11 and the dates of the local board of review’s session to hear 12 such protests. Current law allows such protests to be filed 13 on or after October 15, to and including October 25. The bill 14 makes the period of time for filing a protest from October 9 to 15 October 31. The bill changes the dates during which the local 16 board is in session to hear assessment protests resulting from 17 equalization orders to be October 15 to November 30 (previously 18 October 15 to November 15). The bill also provides that the 19 deadline for completing the appeal procedures for equalizations 20 implemented by the assessing jurisdiction using an alternative 21 method of applying the equalization order is December 15 22 instead of November 30. 23 Code section 441.35 provides that if the assessment of any 24 property is raised during the local board of review’s meeting 25 in the even-numbered year, the clerk shall give notice by 26 mail in the manner provided in Code section 441.36. The bill 27 requires the mail notice for all property where the value has 28 changed. 29 Code section 441.35, subsection 2, also authorizes the local 30 board of review to provide notice to taxpayers by publication 31 in one of the official newspapers located in the taxing 32 district if the local board of review raises the assessment 33 of all property in a taxing district during the local board 34 of review’s session in an even-numbered assessment year. 35 -8- LSB 1113HV (1) 86 md/sc 8/ 9

H.F. 192 The bill modifies this provision to require, in addition to 1 individual owner or taxpayer notices, notice by publication if 2 all property in the taxing district is revalued and reassessed. 3 The bill amends Code section 441.37 to require individual 4 assessment notices and published notices resulting from an 5 equalization order to include information on the availability 6 of electronic filing of protests if electronic filing is 7 authorized by the local board of review. 8 The bill may include a state mandate as defined in Code 9 section 25B.3. The bill makes inapplicable Code section 25B.2, 10 subsection 3, which would relieve a political subdivision from 11 complying with a state mandate if funding for the cost of 12 the state mandate is not provided or specified. Therefore, 13 political subdivisions are required to comply with any state 14 mandate included in the bill. 15 The bill applies to assessment years beginning on or after 16 January 1, 2016. 17 -9- LSB 1113HV (1) 86 md/sc 9/ 9