House File 616 - Introduced HOUSE FILE 616 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 192) (SUCCESSOR TO HSB 29) A BILL FOR An Act relating to property tax credits and assessment by 1 modifying filing deadline provisions, modifying requirements 2 relating to property assessment notices and equalization 3 order notices, modifying provisions relating to property 4 assessment protests and assessor informal reviews, and 5 including effective date and applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1113HZ (2) 86 md/sc

H.F. 616 Section 1. Section 426C.3, subsection 2, paragraph a, Code 1 2015, is amended to read as follows: 2 a. (1) Claims for the business property tax credit against 3 taxes due and payable in fiscal years beginning before July 4 1, 2016, shall be filed not later than March 15 preceding the 5 fiscal year during which the taxes for which the credit is 6 claimed are due and payable. 7 (2) Claims for the business property tax credit against 8 taxes due and payable in fiscal years beginning on or after 9 July 1, 2016, shall be filed not later than July 1 preceding 10 the fiscal year during which the taxes for which the credit is 11 claimed are due and payable. 12 Sec. 2. Section 441.26, subsection 1, Code 2015, is amended 13 to read as follows: 14 1. The director of revenue shall each year prescribe 15 the form of assessment roll to be used by all assessors in 16 assessing property, in this state, also the form of pages of 17 the assessor’s assessment book. The assessment rolls shall 18 be in a form that will permit entering, separately, the names 19 of all persons assessed, and shall also contain a notice in 20 substantially the following form: 21 If you are not satisfied that the foregoing assessment is 22 correct, you may contact the assessor on or after April 1 2 , 23 to and including May 4 April 25 , of the year of the assessment 24 to request an informal review of the assessment pursuant to 25 section 441.30 . 26 If you are not satisfied that the foregoing assessment is 27 correct, you may file a protest against such assessment with 28 the board of review on or after April 7 2 , to and including May 29 5 April 30 , of the year of the assessment, such protest to be 30 confined to the grounds specified in section 441.37 . 31 Dated: .. day of ... (month), .. (year) 32 ........... 33 County/City Assessor. 34 Sec. 3. Section 441.26, subsection 2, Code 2015, is amended 35 -1- LSB 1113HZ (2) 86 md/sc 1/ 9

H.F. 616 to read as follows: 1 2. The notice in 1981 and each odd-numbered year thereafter 2 shall contain a statement that the assessments are subject 3 to equalization pursuant to an order issued by the director 4 of revenue, that the county auditor shall give notice on or 5 before October 15 8 by publication in an official newspaper of 6 general circulation to any class of property affected by the 7 equalization order, that the county auditor shall give notice 8 by mail postmarked on or before October 8 to each property 9 owner or taxpayer whose valuation has been increased by the 10 equalization order, and that the board of review shall be in 11 session from October 15 10 to November 15 to hear protests of 12 affected property owners or taxpayers whose valuations have 13 been adjusted by the equalization order. 14 Sec. 4. Section 441.28, Code 2015, is amended to read as 15 follows: 16 441.28 Assessment rolls —— change —— notice to taxpayer. 17 The assessment shall be completed not later than April 1 each 18 year. If the assessor makes any change in an assessment after 19 it has been entered on the assessor’s rolls, the assessor shall 20 note on the roll, together with the original assessment, the 21 new assessment and the reason for the change, together with the 22 assessor’s signature and the date of the change. Provided, 23 however, in the event the assessor increases any assessment the 24 assessor shall give notice of the increase in writing to the 25 taxpayer by mail postmarked no later than April 1. No changes 26 shall be made on the assessment rolls after April 1 except by 27 written agreement of the taxpayer and assessor under section 28 441.30, by order of the board of review or of the property 29 assessment appeal board, or by decree of court. 30 Sec. 5. Section 441.30, subsections 1 and 2, Code 2015, are 31 amended to read as follows: 32 1. Any property owner or aggrieved taxpayer who is 33 dissatisfied with the owner’s or taxpayer’s assessment may 34 contact the assessor by telephone or in writing by paper or 35 -2- LSB 1113HZ (2) 86 md/sc 2/ 9

H.F. 616 electronic medium on or after April 1 2 , to and including May 1 4 April 25 , of the year of the assessment to inquire about the 2 specifics and accuracy of the assessment. Such an inquiry may 3 also include a request for an informal review of the assessment 4 by the assessor under one or more of the grounds for protest 5 authorized under section 441.37 for the same assessment year. 6 2. In response to an inquiry under subsection 1 , if the 7 assessor, following an informal review, determines that the 8 assessment was incorrect under one or more of the grounds for 9 protest authorized under section 441.37 for the same assessment 10 year, the assessor may , on or before April 25, recommend that 11 the property owner or aggrieved taxpayer file a protest with 12 the local board of review and may file a recommendation with 13 the local board of review related to the informal review , or 14 may enter into a signed written agreement with the property 15 owner or aggrieved taxpayer authorizing the assessor to correct 16 or modify the assessment according to the agreement of the 17 parties . 18 Sec. 6. Section 441.35, subsection 2, Code 2015, is amended 19 to read as follows: 20 2. In any year after the year in which an assessment has 21 been made of all of the real estate in any taxing district, the 22 board of review shall meet as provided in section 441.33 , and 23 where the board finds the same has changed in value, the board 24 shall revalue and reassess any part or all of the real estate 25 contained in such taxing district, and in such case, the board 26 shall determine the actual value as of January 1 of the year 27 of the revaluation and reassessment and compute the taxable 28 value thereof. If the assessment of any such property is 29 raised, or any property is added to the tax list by the board, 30 the clerk shall give notice in the manner provided in section 31 441.36 . However, if the assessment of If all property in any 32 taxing district is raised revalued and reassessed , the board 33 may shall, in addition to notices required to be provided in 34 the manner specified in section 441.36, instruct the clerk to 35 -3- LSB 1113HZ (2) 86 md/sc 3/ 9

H.F. 616 give immediate notice by one publication in one of the official 1 newspapers located in the taxing district , and such published 2 notice shall take the place of the mailed notice provided for 3 in section 441.36 , but all other provisions of that section 4 shall apply . The decision of the board as to the foregoing 5 matters shall be subject to appeal to the property assessment 6 appeal board within the same time and in the same manner as 7 provided in section 441.37A and to the district court within 8 the same time and in the same manner as provided in section 9 441.38 . 10 Sec. 7. Section 441.37, subsection 1, paragraph a, 11 unnumbered paragraph 1, Code 2015, is amended to read as 12 follows: 13 Any property owner or aggrieved taxpayer who is dissatisfied 14 with the owner’s or taxpayer’s assessment may file a protest 15 against such assessment with the board of review on or after 16 April 7 2 , to and including May 5 April 30 , of the year of the 17 assessment. In any county which has been declared to be a 18 disaster area by proper federal authorities after March 1 and 19 prior to May 20 of said year of assessment, the board of review 20 shall be authorized to remain in session until June 15 and the 21 time for filing a protest shall be extended to and include the 22 period from May 25 to June 5 of such year. The protest shall 23 be in writing and, except as provided in subsection 3 , signed 24 by the one protesting or by the protester’s duly authorized 25 agent. The taxpayer may have an oral hearing on the protest if 26 the request for the oral hearing is made in writing at the time 27 of filing the protest. The protest must be confined to one or 28 more of the following grounds: 29 Sec. 8. Section 441.37, subsection 3, Code 2015, is amended 30 to read as follows: 31 3. For assessment years beginning on or after January 32 1, 2014, the board of review may allow property owners or 33 aggrieved taxpayers who are dissatisfied with the owner’s or 34 taxpayer’s assessment to file a protest against such assessment 35 -4- LSB 1113HZ (2) 86 md/sc 4/ 9

H.F. 616 by electronic means. Electronic filing of assessment protests 1 may be authorized for the protest period that begins April 2 7 2 , the protest period that begins October 15 9 , or both. 3 Except for the requirement that a protest be signed, all other 4 requirements of this section for an assessment protest to the 5 board of review shall apply to a protest filed electronically. 6 If electronic filing is authorized by the local board of 7 review, the availability of electronic filing shall be clearly 8 indicated on the assessment roll notice provided to the 9 property owner or taxpayer and included in both the published 10 equalization order notice and the equalization order notice 11 mailed to the property owner or taxpayer if applicable . 12 Sec. 9. Section 441.49, subsections 2 and 4, Code 2015, are 13 amended to read as follows: 14 2. a. On or before October 15 8 the county auditor shall 15 cause to be published in official newspapers of general 16 circulation the final equalization order. The county auditor 17 shall also notify each property owner or taxpayer whose 18 valuation has been increased by the final equalization order 19 by mail postmarked on or before October 8. The publication 20 and the individual notice mailed to each property owner or 21 taxpayer whose valuation has been increased shall include, in 22 type larger than the remainder of the publication or notice , 23 the following statement statements : 24 Assessed values are equalized by the department of revenue 25 every two years. Local taxing authorities determine the final 26 tax levies and may reduce property tax rates to compensate 27 for any increase in valuation due to equalization. If you 28 are not satisfied that your assessment as adjusted by the 29 equalization order is correct, you may file a protest against 30 such assessment with the board of review on or after October 31 9, to and including October 31. 32 b. Failure to publish the equalization order or to notify 33 property owners or taxpayers of the equalization order has no 34 effect upon the validity of the orders. 35 -5- LSB 1113HZ (2) 86 md/sc 5/ 9

H.F. 616 4. The local board of review shall reconvene in special 1 session from October 15 10 to November 15 for the purpose of 2 hearing the protests of affected property owners or taxpayers 3 within the jurisdiction of the board whose valuation of 4 property if adjusted pursuant to the equalization order issued 5 by the director of revenue will result in a greater value than 6 permitted under section 441.21 . The board of review shall 7 accept protests only during the first ten days following the 8 date the local board of review reconvenes period of time from 9 October 9, to and including October 31 . The board of review 10 shall limit its review to only the timely filed protests. The 11 board of review may adjust all or a part of the percentage 12 increase ordered by the director of revenue by adjusting the 13 actual value of the property under protest to one hundred 14 percent of actual value. Any adjustment so determined by 15 the board of review shall not exceed the percentage increase 16 provided for in the director’s equalization order. The 17 determination of the board of review on filed protests is 18 final, subject to appeal to the property assessment appeal 19 board. A final decision by the local board of review, or the 20 property assessment appeal board, if the local board’s decision 21 is appealed, is subject to review by the director of revenue 22 for the purpose of determining whether the board’s actions 23 substantially altered the equalization order. In making the 24 review, the director has all the powers provided in chapter 25 421 , and in exercising the powers the director is not subject 26 to chapter 17A . Not later than fifteen days following the 27 adjournment of the board, the board of review shall submit to 28 the director of revenue, on forms prescribed by the director, a 29 report of all actions taken by the board of review during this 30 session. 31 Sec. 10. IMPLEMENTATION OF ACT. Section 25B.2, subsection 32 3, shall not apply to this Act. 33 Sec. 11. EFFECTIVE UPON ENACTMENT. The following provision 34 of this Act, being deemed of immediate importance, takes effect 35 -6- LSB 1113HZ (2) 86 md/sc 6/ 9

H.F. 616 upon enactment: 1 1. The section of this Act amending section 426C.3. 2 Sec. 12. APPLICABILITY. Except for the section of this Act 3 amending section 426C.3, this Act applies to assessment years 4 beginning on or after January 1, 2016. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to property tax credits and assessment 9 by modifying filing deadline provisions, modifying provisions 10 relating to property assessment notices and equalization order 11 notices, and by modifying provisions relating to property 12 assessment protests and assessor informal reviews. 13 Current Code section 426C.3 requires claims for the business 14 property tax credit to be filed not later than March 15 15 preceding the fiscal year during which the taxes for which the 16 credits is claimed are due and payable. The bill provides that 17 claims for the business property tax credit against taxes due 18 and payable in fiscal years beginning on or after July 1, 2016, 19 shall be filed not later than July 1 preceding the fiscal year 20 during which the taxes for which the credit is claimed are due 21 and payable. 22 Current Code section 441.30 allows a property owner or 23 taxpayer to contact the assessor to inquire about the specifics 24 and accuracy of the assessment and to request an informal 25 review of the assessment on or after April 1 to and including 26 May 4 of the assessment year. The bill modifies that period 27 of time to be on or after April 2 to and including April 25. 28 The bill also authorizes a change to the assessment on or 29 before April 25 if the owner or taxpayer enters into a written 30 agreement with the assessor. This authority is in addition 31 to the assessor’s current authority to recommend that the 32 taxpayer file a protest with the local board of review and file 33 a recommendation in regards to such a protest. 34 The bill also modifies the period of time for filing an 35 -7- LSB 1113HZ (2) 86 md/sc 7/ 9

H.F. 616 assessment protest with the local board of review from the 1 current April 7 to May 5, to a period of time beginning April 2 2 to and including April 30. 3 Current Code section 441.26 requires notices of equalization 4 orders to be published in the newspaper on or before 5 October 15. The bill modifies the publication deadline for 6 equalization order notices to October 8 and requires that 7 individual notices be mailed by October 8 to each owner or 8 taxpayer whose valuation has been increased by the equalization 9 order. The bill provides that the notice shall contain the 10 statement currently required in published notices and amends 11 Code section 441.49 to also require that the notice contain a 12 statement of the owner’s or taxpayer’s ability to file with the 13 local board of review a protest against an assessment adjusted 14 by the equalization order. 15 The bill also amends Code section 441.49 to modify the 16 period of time for taxpayer protests of an equalization order 17 and the dates of the local board of review’s session to hear 18 such protests. Current law allows such protests to be filed 19 on or after October 15, to and including October 25. The bill 20 makes the period of time for filing a protest from October 9 to 21 October 31. The bill changes the dates during which the local 22 board is in session to hear assessment protests resulting from 23 equalization orders to be October 10 to November 15 (previously 24 October 15 to November 15). 25 Code section 441.35, subsection 2, also authorizes the local 26 board of review to provide notice to taxpayers by publication 27 in one of the official newspapers located in the taxing 28 district if the local board of review raises the assessment 29 of all property in a taxing district during the local board 30 of review’s session in an even-numbered assessment year. 31 The bill modifies this provision to require, in addition to 32 individual owner or taxpayer notices, notice by publication if 33 all property in the taxing district is revalued and reassessed. 34 The bill amends Code section 441.37 to require individual 35 -8- LSB 1113HZ (2) 86 md/sc 8/ 9

H.F. 616 assessment notices and published notices resulting from an 1 equalization order to include information on the availability 2 of electronic filing of protests if electronic filing is 3 authorized by the local board of review. 4 The bill may include a state mandate as defined in Code 5 section 25B.3. The bill makes inapplicable Code section 25B.2, 6 subsection 3, which would relieve a political subdivision from 7 complying with a state mandate if funding for the cost of 8 the state mandate is not provided or specified. Therefore, 9 political subdivisions are required to comply with any state 10 mandate included in the bill. 11 The section of the bill amending Code section 426C.3 takes 12 effect upon enactment. 13 Except for the section of the bill amending Code section 14 426C.3, the bill applies to assessment years beginning on or 15 after January 1, 2016. 16 -9- LSB 1113HZ (2) 86 md/sc 9/ 9