HF 478 (LSB 1923HV (2) 87)

HOUSE FILE 478

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 44)

A BILL FOR

An Act relating to the property assessment appeal board by striking the future repeal of provisions relating to the board, modifying procedures and requirements for appeals to the board, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.559, subsection 20, Code 2017, is amended to read as follows:
   20.  Apportion and collect the costs assessed by the district court against the board of review or any taxing body district resulting from an appeal of property assessments as provided in section 441.40.
    Sec. 2.  Section 428.4, subsection 1, Code 2017, is amended to read as follows:
   1.  Property shall be assessed for taxation each year. Real estate shall be listed and assessed in 1981 and every two years thereafter. The assessment of real estate shall be the value of the real estate as of January 1 of the year of the assessment. The year 1981 and each odd-numbered year thereafter shall be a reassessment year. In any year, after the year in which an assessment has been made of all the real estate in an assessing jurisdiction, the assessor shall value and assess or revalue and reassess, as the case may require, any real estate that the assessor finds was incorrectly valued or assessed, or was not listed, valued, and assessed, in the assessment year immediately preceding, also any real estate the assessor finds has changed in value subsequent to January 1 of the preceding real estate assessment year. However, a percentage increase on a class of property shall not be made in a year not subject to an equalization order unless ordered by the department of revenue. The assessor shall determine the actual value and compute the taxable value thereof as of January 1 of the year of the revaluation and reassessment. The assessment shall be completed as specified in section 441.28, but no reduction or increase in actual value shall be made for prior years. If an assessor makes a change in the valuation of the real estate as provided for, sections 441.23, 441.37, 441.37A, and 441.38, and 441.39 apply.
    Sec. 3.  Section 441.37A, subsection 1, Code 2017, is amended to read as follows:
   1.  a.  For the assessment year beginning January 1, 2007, and all subsequent assessment years beginning before January 1, 2021, appeals Appeals may be taken from the action of the board of review with reference to protests of assessment, valuation, or application of an equalization order to the property assessment appeal board created in section 421.1A. However, a property owner or aggrieved taxpayer or an appellant described in section 441.42 may bypass the property assessment appeal board and appeal the decision of the local board of review to the district court pursuant to section 441.38.
   b.  For an appeal to the property assessment appeal board to be valid, written notice must be filed by the party appealing the decision with the secretary of the property assessment appeal board a party must file an appeal with the board within twenty days after the date of adjournment of the local board of review or May 31, whichever is later. The written notice of appeal shall include a petition setting forth the basis of the appeal and the relief sought. No new grounds in addition to those set out in the protest to the local board of review as provided in section 441.37 can be pleaded, but additional evidence to sustain those grounds may be introduced. The assessor shall have the same right to appeal to the assessment appeal board as an individual taxpayer, public body, or other public officer as provided in section 441.42. An appeal to the board is a contested case under chapter 17A.
   c.  Filing of the written notice of appeal and petition with the secretary of the property assessment appeal board shall preserve all rights of appeal of the appellant, except as otherwise provided in subsection 2. A copy of the appellant’s written notice of appeal and petition shall be mailed by the secretary of the property assessment appeal board to the local board of review whose decision is being appealed.
   d.  In all cases where a change in assessed valuation of one hundred thousand dollars or more is petitioned for, the local board of review shall mail a copy of the written notice of appeal and petition to all affected taxing districts as shown on the last available tax list.  A copy of the appellant’s appeal shall be sent by the property assessment appeal board to the local board of review whose decision is being appealed.
   e.   The property assessment appeal board may, by rule, provide for the filing of a notice of appeal and petition with the secretary of the board an appeal by electronic means. All requirements of this section for an appeal to the board shall apply to an appeal filed electronically.
    Sec. 4.  Section 441.37A, subsection 2, paragraph b, Code 2017, is amended to read as follows:
   b.   Each appeal may be considered by one or more members of the board, and the chairperson of the board may assign members to consider appeals. If a hearing is requested, it shall be open to the public and shall be conducted in accordance with the rules of practice and procedure adopted by the board. The board may provide by rule for participation in such hearings by telephone or other means of electronic communication. However, any deliberation of the board or of board members considering the appeal in reaching a decision on any appeal shall be confidential. Any deliberation of the board or of board members to rule on procedural motions in a pending appeal or to deliberate on the decision to be reached in an appeal is exempt from the provisions of chapter 21. The property assessment appeal board or any member of the board considering the appeal may require the production of any books, records, papers, or documents as evidence in any matter pending before the board that may be material, relevant, or necessary for the making of a just decision. Any books, records, papers, or documents produced as evidence shall become part of the record of the appeal. Any testimony given relating to the appeal shall be transcribed electronically recorded and made a part of the record of the appeal.
    Sec. 5.  Section 441.37A, subsection 3, Code 2017, is amended to read as follows:
   3.  a.  The burden of proof for all appeals before the board shall be as stated in section 441.21, subsection 3. The board members considering the appeal shall determine anew all questions arising before the local board of review which that relate to the liability of the property to assessment or the amount thereof of the assessment. All of the evidence shall be considered and there shall be no presumption as to the correctness of the valuation of assessment appealed from. The property assessment appeal board shall issue a decision in each appeal filed with the board. If the appeal is considered by less than the full membership of the board, the determination made by such members shall be forwarded to the full board for approval, rejection, or modification. If the initial determination is rejected by the board, it shall be returned for reconsideration to the board members making the initial determination. Any deliberation of the board regarding an initial determination shall be confidential.
   b.  The decision of the board shall be considered the final agency action for purposes of further appeal, and is subject to judicial review as provided in section 441.37B, except as otherwise provided in section 441.49. The decision shall be final unless appealed to district court as provided in section 441.38.  A decision of the board modifying an assessment shall be sent to the county auditor and the assessor, who shall correct the assessment books accordingly. An appeal of the board’s decision under section 441.37B shall not itself stay execution or enforcement of the board’s decision.
   c.  The levy of taxes on any assessment appealed to the board shall not be delayed by any proceeding before the board, and if the assessment appealed from is reduced by the decision of the board, any taxes levied upon that portion of the assessment reduced shall be abated or, if already paid, shall, by order of the board, be refunded or credited against future property taxes levied against the property at the option of the property owner or aggrieved taxpayer.
   d.  If the subject of an appeal is the application of an equalization order, the property assessment appeal board shall not order a reduction in assessment greater than the amount that the assessment was increased due to application of the equalization order.
   e.  Each party to the appeal shall be responsible for the costs of the appeal incurred by that party.
    Sec. 6.  NEW SECTION.  441.37B  Appeal to district court from property assessment appeal board.
   A party who is aggrieved or adversely affected by a final action of the property assessment appeal board may seek judicial review of the action as provided in chapter 17A. Notwithstanding section 17A.19, subsection 2, a petition for judicial review of the action of the property assessment appeal board shall be filed in the district court of the county where the property that is subject to the appeal is located.
    Sec. 7.  Section 441.38, Code 2017, is amended to read as follows:
   441.38  Appeal to district court from local board of review.
   1.  Appeals may be taken from the action of the local board of review with reference to protests of assessment, to the district court of the county in which the board holds its sessions within twenty days after its the board’s adjournment or May 31, whichever date is later. Appeals may be taken from the action of the property assessment appeal board to the district court of the county where the property which is the subject of the appeal is located within twenty days after the letter of disposition of the appeal by the property assessment appeal board is postmarked to the appellant. No new grounds in addition to those set out in the protest to the local board of review as provided in section 441.37, or in addition to those set out in the appeal to the property assessment appeal board, if applicable, can be pleaded. Additional evidence to sustain those grounds may be introduced in an appeal from the local board of review to the district court. However, no new evidence to sustain those grounds may be introduced in an appeal from the property assessment appeal board to the district court. The assessor shall have the same right to appeal and in the same manner as an individual taxpayer, public body, or other public officer as provided in section 441.42. Appeals shall be taken by filing a written notice of appeal with the clerk of district court. Filing of the written notice of appeal shall preserve all rights of appeal of the appellant.
   2.  If the appeal to district court is taken from the action of the local board of review, notice Notice of appeal shall be served as an original notice on the chairperson, presiding officer, or clerk of the board of review after the filing of notice under subsection 1 with the clerk of district court. If the appeal to district court is taken from the action of the property assessment appeal board, notice of appeal shall be served as an original notice on the secretary of the property assessment appeal board after the filing of notice under subsection 1 with the clerk of district court.
   3.  The court shall hear the appeal in equity and determine anew all questions arising before the board of review that relate to the liability of the property to assessment or the amount of the assessment. The court shall consider all of the evidence and there shall be no presumption as to the correctness of the valuation or assessment appealed from. The court’s decision shall be certified by the clerk of the court to the county auditor and the assessor, who shall correct the assessment books accordingly.
    Sec. 8.  Section 441.39, Code 2017, is amended by striking the section and inserting in lieu thereof the following:
   441.39  Notice of assessment protests and appeals to taxing districts.
   1.  If a property owner or aggrieved taxpayer appeals a decision of the board of review to the property assessment appeal board or to district court and requests an adjustment in valuation of one hundred thousand dollars or more, the assessor shall notify all affected taxing districts as shown on the last available tax list.
   2.  In addition to any other requirement for providing of notice, if a property owner or aggrieved taxpayer files a protest against the assessment of property valued by the assessor at five million dollars or more or files an appeal to the property assessment appeal board or the district court with regard to such property, the assessor shall provide notice to the school district in which such property is located within ten days of the filing of the protest or the appeal, as applicable.
    Sec. 9.  Section 441.40, Code 2017, is amended to read as follows:
   441.40  Costs, fees, and expenses apportioned.
   The clerk of the court shall likewise certify to the county treasurer the costs assessed by the court on any appeal from a board of review to the district court, in all cases where said the costs are taxed against the board of review or any taxing body district. Thereupon the county treasurer shall compute and apportion the said costs between the various taxing bodies districts participating in the proceeds of the collection of the taxes involved in any such appeal, and said the treasurer shall so compute and apportion the various amounts which said the taxing bodies districts are required to pay in proportion to the amount of taxes each of said the taxing bodies districts is entitled to receive from the whole amount of taxes involved in each of such appeals. The said county treasurer shall deduct from the proceeds of all general taxes collected the amount of costs so computed and apportioned by the treasurer from the moneys due to each taxing body district from general taxes collected. The amount so deducted shall be certified to each taxing body district in lieu of moneys collected. Said The county treasurer shall pay to the clerk of the district court the amount of said the costs so computed, apportioned, and collected by the treasurer in all cases now on file or hereafter filed in which said the costs have not been paid.
    Sec. 10.  Section 441.41, Code 2017, is amended to read as follows:
   441.41  Legal counsel.
   In the case of cities having an assessor, the city legal department shall represent the assessor and board of review in all litigation dealing with assessments. In the case of counties, the county attorney shall represent the assessor and board of review in all litigation dealing with assessments. Any taxing body district interested in the taxes received from such assessments may be represented by an attorney and shall be required to appear by attorney upon written request of the assessor to the presiding officer of any such taxing body district. The conference board may employ special counsel to assist the city legal department or county attorney as the case may be.
    Sec. 11.  Section 441.44, Code 2017, is amended to read as follows:
   441.44  Notice of voluntary settlement.
   1.  The property assessment appeal board may adopt rules establishing requirements for notices of voluntary settlements in appeals before the board to be served upon affected taxing districts.
   2.  No A voluntary court settlement of an assessment appeal shall not be valid unless written notice thereof of the settlement shall first be served upon each of the affected taxing bodies interested in the taxes derived from such assessment districts.
    Sec. 12.  Section 443.11, Code 2017, is amended to read as follows:
   443.11  Procedure on appeal.
   The appeal provided for in section 443.8 shall be taken within ten days from the time of the final action of the assessor or auditor, by a written notice to that effect to the assessor or auditor, and served as an original notice. The court on appeal shall hear and determine the rights of the parties in the same manner as appeals from the board of review, as prescribed in sections 441.39 441.38 and 441.43.
    Sec. 13.  Section 602.8102, subsection 61, Code 2017, is amended to read as follows:
   61.  Certify the final decision of the district court in an appeal of the tax assessments as provided in section 441.39 441.37B or 441.38. Costs of the appeal to be assessed against the board of review or a taxing body district shall be certified to the treasurer as provided in section 441.40.
    Sec. 14.  REPEAL.  2005 Iowa Acts, chapter 150, section 134, as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 Iowa Acts, chapter 109, section 1, is repealed.
    Sec. 15.  REPEAL.  Sections 441.38A and 441.38B, Code 2017, are repealed.
    Sec. 16.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2018.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   In 2005, the property assessment appeal board was established. The legislation establishing the property assessment appeal board included a future repeal of the board effective July 1, 2013. This future repeal provision was amended in 2013 to extend the date of the repeal to July 1, 2018. In 2015, the future repeal provision was again extended from July 1, 2018, to July 1, 2021.
   This bill repeals the property assessment appeal board’s future repeal provisions, including the 2013 and 2015 amendments to those provisions, and makes corresponding changes.
   The bill also modifies language regarding the form of filing of appeals with the property assessment appeal board by no longer requiring a separate notice of appeal and a petition, but instead only requiring the appeal to include the contents currently required to be in the petition.
   The bill provides that testimony given relating to an appeal before the board is required to be electronically recorded, instead of transcribed as required under current law.
   The bill strikes a provision of current law that requires any deliberation of the board regarding an initial determination to be confidential.
   The bill strikes provisions in Code section 441.38 governing appeals from the property assessment appeal board to district court and specifies that judicial review of board decisions are governed by Code chapter 17A (Iowa administrative procedure Act). However, the bill requires petitions for judicial review to be filed in the county where the property subject to the appeal is located, without the option of filing in Polk county district court.
   Current law requires that tax amounts reduced due to a reduction in the assessment by the property assessment appeal board be refunded if the taxes have already been paid. The bill provides that the reduced amount may be refunded or credited against future property tax liability at the option of the property owner or aggrieved taxpayer.
   The bill authorizes the property assessment appeal board to adopt rules establishing requirements for notices of voluntary settlements in appeals before the board to be served upon affected taxing districts.
   The bill also makes corresponding changes and reorganizes some provisions governing the property assessment appeal board.
   The bill applies to assessment years beginning on or after January 1, 2018.