H.F. 651 DIVISION I 1 PROPERTY ASSESSMENT APPEAL BOARD AND APPEAL COSTS 2 Section 1. Section 441.37A, subsection 1, paragraph a, Code 3 2017, is amended to read as follows: 4 a. For the assessment year beginning January 1, 2007, and 5 all subsequent assessment years beginning before January 1, 6 2021 , appeals may be taken from the action of the board of 7 review with reference to protests of assessment, valuation, or 8 application of an equalization order to the property assessment 9 appeal board created in section 421.1A . However, a property 10 owner or aggrieved taxpayer or an appellant described in 11 section 441.42 may bypass the property assessment appeal board 12 and appeal the decision of the local board of review to the 13 district court pursuant to section 441.38 . 14 Sec. 2. Section 441.37A, subsection 3, paragraph b, Code 15 2017, is amended to read as follows: 16 b. The decision of the board shall be considered the 17 final agency action for purposes of further appeal, except as 18 otherwise provided in section 441.49 . The decision shall be 19 final unless appealed to district court as provided in section 20 441.38 . The levy of taxes on any assessment appealed to the 21 board shall not be delayed by any proceeding before the board, 22 and if the assessment appealed from is reduced by the decision 23 of the board, any taxes levied upon that portion of the 24 assessment reduced shall be abated or, if already paid, shall 25 be refunded. If the subject of an appeal is the application 26 of an equalization order, the property assessment appeal board 27 shall not order a reduction in assessment greater than the 28 amount that the assessment was increased due to application 29 of the equalization order. Each party to the appeal shall be 30 responsible for the costs of the appeal incurred by that party. 31 However, for assessment years beginning on or after January 1, 32 2018, if the property assessment appeal board decides in favor 33 of the property owner or aggrieved taxpayer and the amount of 34 the assessment appealed from is reduced by the decision of 35 -1- LSB 2693HV (2) 87 md/sc/jh 1/ 13

H.F. 651 the board, the office of assessor shall be responsible for a 1 percentage of the property owner’s or aggrieved taxpayer’s 2 reasonable costs incurred equal to the percentage by which the 3 assessment is reduced by the board payable from the assessment 4 expense fund authorized by section 441.16. For purposes of 5 this section, costs include but are not limited to legal fees, 6 appraisal fees, and witness fees. The responsibility for the 7 payment of a percentage of the property owner’s or aggrieved 8 taxpayer’s reasonable costs by the office of assessor shall not 9 apply to the first appeal to the board for which the assessment 10 is reduced for the assessment year beginning January 1, 2018, 11 or the first such reduction for a subsequent assessment year if 12 no such reduction is ordered by the board for the assessment 13 year beginning January 1, 2018. 14 Sec. 3. Section 441.40, Code 2017, is amended to read as 15 follows: 16 441.40 Costs, fees, and expenses apportioned. 17 The clerk of the court shall likewise certify to the county 18 treasurer the costs assessed by the court on any appeal from a 19 board of review to the district court, in all cases where said 20 costs are taxed against the board of review or any taxing body. 21 For assessment years beginning on or after January 1, 2018, if 22 the district court decides in favor of the property owner or 23 aggrieved taxpayer and the amount of the assessment appealed 24 from is reduced by the decision of the district court, the 25 board of review or applicable taxing body shall be responsible 26 for the payment of a percentage of the property owner’s or 27 taxpayer’s reasonable costs incurred equal to the percentage 28 by which the assessment is reduced by the district court. For 29 purposes of this section, costs include but are not limited 30 to legal fees, appraisal fees, and witness fees. Thereupon 31 the county treasurer shall compute and apportion the said 32 costs between the various taxing bodies participating in the 33 proceeds of the collection of the taxes involved in any such 34 appeal, and said treasurer shall so compute and apportion the 35 -2- LSB 2693HV (2) 87 md/sc/jh 2/ 13

H.F. 651 various amounts which said taxing bodies are required to pay in 1 proportion to the amount of taxes each of said taxing bodies is 2 entitled to receive from the whole amount of taxes involved in 3 each of such appeals. The said county treasurer shall deduct 4 from the proceeds of all general taxes collected the amount of 5 costs so computed and apportioned by the treasurer from the 6 moneys due to each taxing body from general taxes collected. 7 The amount so deducted shall be certified to each taxing body 8 in lieu of moneys collected. Said county treasurer shall pay 9 to the clerk of the district court the amount of said costs so 10 computed, apportioned and collected by the treasurer in all 11 cases now on file or hereafter filed in which said costs have 12 not been paid. 13 Sec. 4. REPEAL. 2005 Iowa Acts, chapter 150, section 134, 14 as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 15 Iowa Acts, chapter 109, section 1, is repealed. 16 DIVISION II 17 PROTEST AND APPEAL BURDEN OF PROOF 18 Sec. 5. Section 441.21, subsection 3, paragraph b, Code 19 2017, is amended to read as follows: 20 b. (1) The For assessment years beginning before January 21 1, 2018, the burden of proof shall be upon any complainant 22 attacking such valuation as excessive, inadequate, inequitable, 23 or capricious ; however . However , in protest or appeal 24 proceedings when the complainant offers competent evidence by 25 at least two disinterested witnesses that the market value of 26 the property is less than the market value determined by the 27 assessor, the burden of proof thereafter shall be upon the 28 officials or persons seeking to uphold such valuation to be 29 assessed. 30 (2) For assessment years beginning on or after January 1, 31 2018, when a valuation is attacked by a complainant, the burden 32 of proof shall be upon the office of assessor to demonstrate 33 that such valuation is not excessive, inadequate, inequitable, 34 or capricious. 35 -3- LSB 2693HV (2) 87 md/sc/jh 3/ 13

H.F. 651 DIVISION III 1 CONFERENCE BOARDS 2 Sec. 6. Section 39.21, Code 2017, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 5. Public members of a conference board as 5 provided in section 441.2. 6 Sec. 7. Section 49.41, subsection 4, Code 2017, is amended 7 to read as follows: 8 4. For purposes of township office and city and county 9 conference board public membership , “nomination papers” as used 10 in this section means the affidavit of candidacy required in 11 section 45.3 . 12 Sec. 8. Section 441.2, Code 2017, is amended to read as 13 follows: 14 441.2 Conference board. 15 1. a. In each county and each city having an assessor there 16 shall be established a conference board. 17 b. In counties the conference board shall consist of 18 the mayors of all incorporated cities in the county whose 19 property is assessed by the county assessor, one representative 20 from the board of directors of each high school district of 21 the county, who is a resident of the county, said board of 22 directors appointing said representative for a one-year term 23 and notifying the clerk of the conference board as to their 24 representative, and members of the board of supervisors , and 25 four public members . The four public members shall be elected 26 by the voters of the county within the assessing jurisdiction, 27 at the general election in the manner provided in paragraph 28 “d” . Each public member seat on the conference board shall be 29 held by an individual who owns or holds an interest in taxable 30 property located in the assessing jurisdiction of the county 31 that is classified as residential, agricultural, commercial, or 32 industrial property. Each of the four property classifications 33 shall be assigned to one of the four public member seats and 34 designated as such on the ballot unless one or more of the 35 -4- LSB 2693HV (2) 87 md/sc/jh 4/ 13

H.F. 651 property classifications is not present within the assessing 1 jurisdiction. If a property classification is not present 2 within the assessing jurisdiction, that public member seat 3 shall not be assigned a classification, shall not be designated 4 on the ballot as being limited to a property classification, 5 and may be occupied by an individual owning or having an 6 interest in any property classification that is present within 7 the assessing jurisdiction. 8 c. In cities having an assessor the conference board shall 9 consist of the members of the city council, school board , and 10 county board of supervisors , and four public members . The four 11 public members shall be elected by the voters of the city at 12 the regular city election in the manner provided in paragraph 13 “d” . Each public member seat on the conference board shall be 14 held by an individual who owns or holds an interest in taxable 15 property located in the city that is classified as residential, 16 agricultural, commercial, or industrial property. Each of 17 the four property classifications shall be assigned to one of 18 the four public member seats and designated as such on the 19 ballot unless one or more of the property classifications is 20 not present within the city. If a property classification is 21 not present within the city, that public member seat shall not 22 be assigned a classification, shall not be designated on the 23 ballot as being limited to a property classification, and may 24 be occupied by an individual owning or having an interest in 25 any property classification that is present within the city. 26 d. The election of the four public members of a conference 27 board shall take place at the election specified in paragraphs 28 “b” and “c” on ballots which shall not reflect a nominee’s 29 political affiliation. A person seeking election as a public 30 member of a conference board shall file an affidavit of 31 candidacy with the county commissioner of elections pursuant to 32 section 45.3. A plurality is sufficient to elect the public 33 members of a conference board. The four public members shall 34 each be elected for a four-year term and may be reelected for 35 -5- LSB 2693HV (2) 87 md/sc/jh 5/ 13

H.F. 651 additional four-year terms. A vacancy among the public member 1 seats prior to the expiration of a term shall be filled by 2 appointment by the remaining public members of the conference 3 board. The appointment shall be for the period until the next 4 pending election as defined in section 69.12, and shall be made 5 within forty days after the vacancy occurs. 6 2. In the counties the chairperson of the board of 7 supervisors shall act as chairperson of the conference board, 8 and in cities having an assessor the mayor of the city council 9 shall act as chairperson of the conference board. 10 3. In any action taken by the conference board, the mayors 11 of all incorporated cities in the county whose property is 12 assessed by the county assessor shall constitute one voting 13 unit, the members of the city board of education or one 14 representative from the board of directors of each high school 15 district of the county shall constitute one voting unit, the 16 members of the city council shall constitute one voting unit, 17 and the county board of supervisors shall constitute one voting 18 unit, and the four public members shall each constitute a 19 separate voting unit, each unit having a single vote and no 20 action shall be valid except by the vote of not less than two 21 four out of the three seven units. The majority vote of the 22 members present of each unit shall determine the vote of the 23 unit. 24 4. The assessor shall be clerk of the conference board. 25 DIVISION IV 26 PROPERTY ASSESSMENT CHANGES 27 Sec. 9. Section 428.4, subsection 1, Code 2017, is amended 28 to read as follows: 29 1. Property shall be assessed for taxation each year. 30 Real estate shall be listed and assessed in 1981 and every 31 two years thereafter. The assessment of real estate shall 32 be the value of the real estate as of January 1 of the year 33 of the assessment. The year 1981 and each odd-numbered year 34 thereafter shall be a reassessment year. In any even-numbered 35 -6- LSB 2693HV (2) 87 md/sc/jh 6/ 13

H.F. 651 year, after the year in which an assessment has been made 1 of all the real estate in an assessing jurisdiction, the 2 assessor shall value and assess or revalue and reassess, as 3 the case may require, any individual real estate parcel that 4 the assessor finds was incorrectly valued or assessed for more 5 than the value authorized by law , or was not listed , valued, 6 and assessed, in the assessment year immediately preceding, 7 also any real estate the assessor finds has changed in value 8 subsequent to January 1 of the preceding real estate assessment 9 year in accordance with subsection 3 . However, a percentage 10 increase on a class of property shall not be made in a year 11 not subject to an equalization order unless ordered by the 12 department of revenue , and any such increase must apply to 13 all property within the class . A percentage increase for an 14 even-numbered year shall be applied to all property within the 15 class and shall not be applied only to a subset of the class 16 unless approved by the department of revenue. The assessor 17 shall determine the actual value and compute the taxable value 18 thereof as of January 1 of the year of the revaluation and 19 reassessment of all real estate . The assessment shall be 20 completed as specified in section 441.28 , but no reduction or 21 increase in actual value shall be made for prior years. If an 22 assessor makes a change in the valuation of the real estate as 23 provided for, sections 441.23 , 441.37 , 441.37A , 441.38 , and 24 441.39 apply. 25 Sec. 10. Section 441.30, subsections 1 and 2, Code 2017, are 26 amended to read as follows: 27 1. Any property owner or aggrieved taxpayer who is 28 dissatisfied with the owner’s or taxpayer’s assessment may 29 contact the assessor by telephone or in writing by paper 30 or electronic medium on or after April 2, to and including 31 April 25, of the year of the assessment to inquire about the 32 specifics and accuracy of the assessment. Such an inquiry may 33 also include a request for an informal review of the assessment 34 by the assessor under one or more of the grounds for protest 35 -7- LSB 2693HV (2) 87 md/sc/jh 7/ 13

H.F. 651 authorized under section 441.37 for the same assessment year . 1 2. In response to an inquiry under subsection 1 , if the 2 assessor, following an informal review, determines that the 3 assessment was incorrect under one or more of the grounds for 4 protest authorized under section 441.37 for the same assessment 5 year , the assessor may, on or before April 25, recommend that 6 the property owner or aggrieved taxpayer file a protest with 7 the local board of review and may file a recommendation with 8 the local board of review related to the informal review, or 9 may enter into a signed written agreement with the property 10 owner or aggrieved taxpayer authorizing the assessor to correct 11 or modify the assessment according to the agreement of the 12 parties. 13 Sec. 11. Section 441.37, subsection 1, paragraph a, 14 subparagraph (1), Code 2017, is amended to read as follows: 15 (1) For odd-numbered assessment years and for even-numbered 16 assessment years for property that was reassessed in such 17 even-numbered assessment year: 18 (a) (1) That said assessment is not equitable as compared 19 with assessments of other like property in the taxing district. 20 When this ground is relied upon as the basis of a protest the 21 legal description and assessments of a representative number of 22 comparable properties, as described by the aggrieved taxpayer 23 shall be listed on the protest, otherwise said protest shall 24 not be considered on this ground. 25 (b) (2) That the property is assessed for more than the 26 value authorized by law. When this ground is relied upon, the 27 protesting party shall state the specific amount which the 28 protesting party believes the property to be overassessed, and 29 the amount which the party considers to be its actual value and 30 fair assessment. 31 (c) (3) That the property is not assessable, is exempt 32 from taxes, or is misclassified and stating the reasons for the 33 protest. 34 (d) (4) That there is an error in the assessment and state 35 -8- LSB 2693HV (2) 87 md/sc/jh 8/ 13

H.F. 651 the specific alleged error. When this ground is relied upon, 1 the error may include but is not limited to listing errors, 2 clerical or mathematical errors, or other errors that result 3 in an error in the assessment. 4 (e) (5) That there is fraud in the assessment which shall 5 be specifically stated. 6 Sec. 12. Section 441.37, subsection 1, paragraph a, 7 subparagraph (2), Code 2017, is amended by striking the 8 subparagraph. 9 Sec. 13. Section 441.41, Code 2017, is amended to read as 10 follows: 11 441.41 Legal counsel. 12 In the case of cities having an assessor, the city legal 13 department shall represent the assessor and board of review 14 in all litigation dealing with assessments. In the case of 15 counties, the county attorney shall represent the assessor and 16 board of review in all litigation dealing with assessments. 17 Any taxing body interested in the taxes received from such 18 assessments may be represented by an attorney and shall be 19 required to appear by attorney upon written request of the 20 assessor to the presiding officer of any such taxing body. The 21 Subject to review and approval by the city legal department or 22 the county attorney, as applicable, the conference board may 23 employ special counsel to assist the city legal department or 24 county attorney as the case may be , including employing special 25 counsel if the city legal department or county attorney is 26 disqualified because of a conflict of interest . 27 Sec. 14. APPLICABILITY. This division of this Act applies 28 to assessment years beginning on or after January 1, 2018. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to property tax assessments, composition 33 of conference boards, and property tax protests and appeals. 34 In 2005, the property assessment appeal board was 35 -9- LSB 2693HV (2) 87 md/sc/jh 9/ 13

H.F. 651 established. The legislation establishing the property 1 assessment appeal board included a future repeal of the board 2 effective July 1, 2013. This future repeal provision was 3 amended in 2013 to extend the date of the repeal to July 1, 4 2018. In 2015, the future repeal provision was again extended 5 from July 1, 2018, to July 1, 2021. 6 Division I of the bill repeals the property assessment 7 appeal board’s future repeal provisions, including the 2013 and 8 2015 amendments to those provisions. The bill also strikes a 9 limitation in Code section 441.37A regarding the assessment 10 years for which the property assessment appeal board may hear 11 appeals. 12 For appeals to the property assessment appeal board for 13 assessment years beginning on or after January 1, 2018, 14 the bill provides that if the board decides in favor of the 15 property owner or taxpayer and the assessment is reduced, 16 the office of assessor is responsible for a percentage of 17 the reasonable costs of the appeal incurred by the owner or 18 taxpayer that is equal to the percentage reduction in the 19 assessment payable from the assessment expense fund. The bill 20 also provides that the responsibility for the payment of a 21 percentage of the property owner’s or aggrieved taxpayer’s 22 reasonable costs by the office of assessor shall not apply 23 to the first appeal to the property assessment appeal board 24 for which the assessment is reduced for the assessment year 25 beginning January 1, 2018, or the first such reduction for a 26 subsequent assessment year if no such reduction is ordered by 27 the board for the assessment year beginning January 1, 2018. 28 The bill also establishes similar provisions for the reasonable 29 costs of the owner or taxpayer related to an appeal to district 30 court for assessment years beginning on or after January 1, 31 2018. 32 Current Code section 441.21(3) specifies a burden of proof 33 for taxpayer protests or appeals of property assessments 34 made by local assessors. The current standard imposes a 35 -10- LSB 2693HV (2) 87 md/sc/jh 10/ 13

H.F. 651 burden of proof on the complainant attacking the valuation as 1 excessive, inadequate, inequitable, or capricious. Only after 2 the complainant, at the protest or appeal proceedings, offers 3 competent evidence by at least two disinterested witnesses 4 that the market value of the property is less than the market 5 value determined by the assessor does the burden of proof shift 6 to the officials or persons seeking to uphold the assessor’s 7 valuation. 8 Division II of the bill provides that for assessment years 9 beginning on or after January 1, 2018, when a valuation is 10 protested or appealed by a complainant, the burden of proof 11 shall be upon the office of assessor to demonstrate that 12 such valuation is not excessive, inadequate, inequitable, or 13 capricious. 14 Division III of the bill increases the membership of county 15 and city conference boards by requiring the addition of four 16 elected public members. The four public members are elected 17 on a nonpartisan basis by the applicable voters of the county 18 or city at the general election or regular city election, 19 as applicable. The bill provides that a person seeking 20 election as a public member of a conference board must only 21 file an affidavit of candidacy. Each public member seat on 22 the conference board may only be held by an individual who 23 owns or holds an interest in taxable property located in the 24 appropriate jurisdiction that is classified as residential, 25 agricultural, commercial, or industrial property. Each of 26 the four property classifications is assigned to one of the 27 four public member seats and designated as such on the ballot. 28 The bill provides that a public member seat is not limited by 29 property classification if that property classification is not 30 present within the jurisdiction. The four public members each 31 serve a four-year term and may be reelected for additional 32 four-year terms. The four public members each constitute a 33 separate voting unit. A vacancy among the public member seats 34 prior to the expiration of a term is filled by appointment by 35 -11- LSB 2693HV (2) 87 md/sc/jh 11/ 13

H.F. 651 the remaining public members of the conference board. Such an 1 appointment is for the period until the next pending election. 2 By operation of current Code section 441.3, the addition 3 of the four public members to the conference board results in 4 an additional four appointments to the examining board of the 5 applicable assessing jurisdiction. 6 Division IV of the bill modifies provisions relating to 7 even-numbered assessment years by providing that the assessor 8 shall value and assess or revalue and reassess, as the case 9 may require, any individual real estate parcel that the 10 assessor finds was assessed for more than the value authorized 11 by law or was not listed in the assessment year immediately 12 preceding, and any real estate the assessor finds has changed 13 in value subsequent to January 1 of the preceding real estate 14 assessment year based on buildings erected, improvements made, 15 or buildings or improvements removed in a year after the 16 assessment. The bill also provides that a percentage increase 17 for an even-numbered assessment year shall be applied to all 18 property within the class and shall not be applied only to 19 a subset of the class unless approved by the department of 20 revenue. 21 Division IV of the bill also modifies the grounds upon 22 which a property owner or aggrieved taxpayer may protest 23 an assessment under Code section 441.37. The bill strikes 24 the grounds in current law that are applicable only to 25 even-numbered assessment years and allows those grounds only 26 authorized for odd-numbered assessment years to be asserted in 27 any assessment year. 28 Division IV of the bill applies to assessment years 29 beginning on or after January 1, 2018. 30 Current Code section 441.41 authorizes the conference board 31 to employ special counsel to assist the city legal department 32 or the county attorney in litigation dealing with assessments. 33 The bill provides that such authority is subject to review and 34 approval by the city legal department or the county attorney, 35 -12- LSB 2693HV (2) 87 md/sc/jh 12/ 13