H.F. _____ 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 the 35 -1- LSB 2693YC (1) 87 md/sc/jh 1/ 12

H.F. _____ board, the assessor shall be responsible for a percentage of 1 the property owner’s or aggrieved taxpayer’s reasonable costs 2 incurred equal to the percentage by which the assessment is 3 reduced by the board. For purposes of this section, costs 4 include by are not limited to legal fees, appraisal fees, and 5 witness fees. 6 Sec. 3. Section 441.40, Code 2017, is amended to read as 7 follows: 8 441.40 Costs, fees, and expenses apportioned. 9 The clerk of the court shall likewise certify to the county 10 treasurer the costs assessed by the court on any appeal from a 11 board of review to the district court, in all cases where said 12 costs are taxed against the board of review or any taxing body. 13 For assessment years beginning on or after January 1, 2018, if 14 the district court decides in favor of the property owner or 15 aggrieved taxpayer and the amount of the assessment appealed 16 from is reduced by the decision of the district court, the 17 board of review or applicable taxing body shall be responsible 18 for the payment of a percentage of the property owner’s or 19 taxpayer’s reasonable costs incurred equal to the percentage 20 by which the assessment is reduced by the district court. For 21 purposes of this section, costs include but are not limited 22 to legal fees, appraisal fees, and witness fees. Thereupon 23 the county treasurer shall compute and apportion the said 24 costs between the various taxing bodies participating in the 25 proceeds of the collection of the taxes involved in any such 26 appeal, and said treasurer shall so compute and apportion the 27 various amounts which said taxing bodies are required to pay in 28 proportion to the amount of taxes each of said taxing bodies is 29 entitled to receive from the whole amount of taxes involved in 30 each of such appeals. The said county treasurer shall deduct 31 from the proceeds of all general taxes collected the amount of 32 costs so computed and apportioned by the treasurer from the 33 moneys due to each taxing body from general taxes collected. 34 The amount so deducted shall be certified to each taxing body 35 -2- LSB 2693YC (1) 87 md/sc/jh 2/ 12

H.F. _____ in lieu of moneys collected. Said county treasurer shall pay 1 to the clerk of the district court the amount of said costs so 2 computed, apportioned and collected by the treasurer in all 3 cases now on file or hereafter filed in which said costs have 4 not been paid. 5 Sec. 4. REPEAL. 2005 Iowa Acts, chapter 150, section 134, 6 as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 7 Iowa Acts, chapter 109, section 1, is repealed. 8 DIVISION II 9 PROTEST AND APPEAL BURDEN OF PROOF 10 Sec. 5. Section 441.21, subsection 3, paragraph b, Code 11 2017, is amended to read as follows: 12 b. (1) The For assessment years beginning before January 13 1, 2018, the burden of proof shall be upon any complainant 14 attacking such valuation as excessive, inadequate, inequitable, 15 or capricious ; however . However , in protest or appeal 16 proceedings when the complainant offers competent evidence by 17 at least two disinterested witnesses that the market value of 18 the property is less than the market value determined by the 19 assessor, the burden of proof thereafter shall be upon the 20 officials or persons seeking to uphold such valuation to be 21 assessed. 22 (2) For assessment years beginning on or after January 23 1, 2018, when a valuation is attacked by a complainant, the 24 burden of proof shall be upon the assessor to demonstrate that 25 such valuation is not excessive, inadequate, inequitable, or 26 capricious. 27 DIVISION III 28 CONFERENCE BOARDS 29 Sec. 6. Section 39.21, Code 2017, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 5. Public members of a conference board as 32 provided in section 441.2. 33 Sec. 7. Section 49.41, subsection 4, Code 2017, is amended 34 to read as follows: 35 -3- LSB 2693YC (1) 87 md/sc/jh 3/ 12

H.F. _____ 4. For purposes of township office and city and county 1 conference board public membership , “nomination papers” as used 2 in this section means the affidavit of candidacy required in 3 section 45.3 . 4 Sec. 8. Section 441.2, Code 2017, is amended to read as 5 follows: 6 441.2 Conference board. 7 1. a. In each county and each city having an assessor there 8 shall be established a conference board. 9 b. In counties the conference board shall consist of 10 the mayors of all incorporated cities in the county whose 11 property is assessed by the county assessor, one representative 12 from the board of directors of each high school district of 13 the county, who is a resident of the county, said board of 14 directors appointing said representative for a one-year term 15 and notifying the clerk of the conference board as to their 16 representative, and members of the board of supervisors , and 17 four public members . The four public members shall be elected 18 by the voters of the county within the assessing jurisdiction, 19 at the general election in the manner provided in paragraph 20 “d” . Each public member seat on the conference board shall be 21 held by an individual who owns or holds an interest in taxable 22 property located in the assessing jurisdiction of the county 23 that is classified as residential, agricultural, commercial, or 24 industrial property. Each of the four property classifications 25 shall be assigned to one of the four public member seats and 26 designated as such on the ballot unless one or more of the 27 property classifications is not present within the assessing 28 jurisdiction. If a property classification is not present 29 within the assessing jurisdiction, that public member seat 30 shall not be assigned a classification, shall not be designated 31 on the ballot as being limited to a property classification, 32 and may be occupied by an individual owning or having an 33 interest in any property classification that is present within 34 the assessing jurisdiction. 35 -4- LSB 2693YC (1) 87 md/sc/jh 4/ 12

H.F. _____ c. In cities having an assessor the conference board shall 1 consist of the members of the city council, school board , and 2 county board of supervisors , and four public members . The four 3 public members shall be elected by the voters of the city at 4 the regular city election in the manner provided in paragraph 5 “d” . Each public member seat on the conference board shall be 6 held by an individual who owns or holds an interest in taxable 7 property located in the city that is classified as residential, 8 agricultural, commercial, or industrial property. Each of 9 the four property classifications shall be assigned to one of 10 the four public member seats and designated as such on the 11 ballot unless one or more of the property classifications is 12 not present within the city. If a property classification is 13 not present within the city, that public member seat shall not 14 be assigned a classification, shall not be designated on the 15 ballot as being limited to a property classification, and may 16 be occupied by an individual owning or having an interest in 17 any property classification that is present within the city. 18 d. The election of the four public members of a conference 19 board shall take place at the election specified in paragraphs 20 “b” and “c” on ballots which shall not reflect a nominee’s 21 political affiliation. A person seeking election as a public 22 member of a conference board shall file an affidavit of 23 candidacy with the county commissioner of elections pursuant to 24 section 45.3. A plurality is sufficient to elect the public 25 members of a conference board. The four public members shall 26 each be elected for a four-year term and may be reelected for 27 additional four-year terms. A vacancy among the public member 28 seats prior to the expiration of a term shall be filled by 29 appointment by the remaining public members of the conference 30 board. The appointment shall be for the period until the next 31 pending election as defined in section 69.12, and shall be made 32 within forty days after the vacancy occurs. 33 2. In the counties the chairperson of the board of 34 supervisors shall act as chairperson of the conference board, 35 -5- LSB 2693YC (1) 87 md/sc/jh 5/ 12

H.F. _____ and in cities having an assessor the mayor of the city council 1 shall act as chairperson of the conference board. 2 3. In any action taken by the conference board, the mayors 3 of all incorporated cities in the county whose property is 4 assessed by the county assessor shall constitute one voting 5 unit, the members of the city board of education or one 6 representative from the board of directors of each high school 7 district of the county shall constitute one voting unit, the 8 members of the city council shall constitute one voting unit, 9 and the county board of supervisors shall constitute one voting 10 unit, and the four public members shall each constitute a 11 separate voting unit, each unit having a single vote and no 12 action shall be valid except by the vote of not less than two 13 four out of the three seven units. The majority vote of the 14 members present of each unit shall determine the vote of the 15 unit. 16 4. The assessor shall be clerk of the conference board. 17 DIVISION IV 18 PROPERTY ASSESSMENT CHANGES 19 Sec. 9. Section 428.4, subsection 1, Code 2017, is amended 20 to read as follows: 21 1. Property shall be assessed for taxation each year. 22 Real estate shall be listed and assessed in 1981 and every 23 two years thereafter. The assessment of real estate shall 24 be the value of the real estate as of January 1 of the year 25 of the assessment. The year 1981 and each odd-numbered year 26 thereafter shall be a reassessment year. In any even-numbered 27 year, after the year in which an assessment has been made 28 of all the real estate in an assessing jurisdiction, the 29 assessor shall value and assess or revalue and reassess, as 30 the case may require, any individual real estate parcel that 31 the assessor finds was incorrectly valued or assessed for more 32 than the value authorized by law , or was not listed , valued, 33 and assessed, in the assessment year immediately preceding, 34 also any real estate the assessor finds has changed in value 35 -6- LSB 2693YC (1) 87 md/sc/jh 6/ 12

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

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

H.F. _____ subparagraph. 1 Sec. 13. Section 441.41, Code 2017, is amended to read as 2 follows: 3 441.41 Legal counsel. 4 In the case of cities having an assessor, the city legal 5 department shall represent the assessor and board of review 6 in all litigation dealing with assessments. In the case of 7 counties, the county attorney shall represent the assessor and 8 board of review in all litigation dealing with assessments. 9 The board of review shall be represented by the county attorney 10 or the city legal department in all litigation dealing with 11 assessments. However, if the county attorney or the city legal 12 department is representing the assessor, the county attorney 13 or city legal department shall not represent the board of 14 review and the conference board shall select an attorney to 15 serve as counsel for the board of review as provided in this 16 section. Any taxing body interested in the taxes received 17 from such assessments may be represented by an attorney and 18 shall be required to appear by attorney upon written request 19 of the assessor to the presiding officer of any such taxing 20 body. The conference board may employ special counsel to 21 assist the city legal department or county attorney as the case 22 may be. The conference board may select an attorney to act as 23 county attorney or the city legal department, as applicable, in 24 litigation dealing with assessments only if the county attorney 25 or city legal department is disqualified because of a conflict 26 of interest. However, the county attorney or city legal 27 department shall be responsible for the payment of reasonable 28 attorney fees and costs of the selected attorney. 29 Sec. 14. APPLICABILITY. This division of this Act applies 30 to assessment years beginning on or after January 1, 2018. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to property tax assessments, composition 35 -9- LSB 2693YC (1) 87 md/sc/jh 9/ 12

H.F. _____ of conference boards, and property tax protests and appeals. 1 In 2005, the property assessment appeal board was 2 established. The legislation establishing the property 3 assessment appeal board included a future repeal of the board 4 effective July 1, 2013. This future repeal provision was 5 amended in 2013 to extend the date of the repeal to July 1, 6 2018. In 2015, the future repeal provision was again extended 7 from July 1, 2018, to July 1, 2021. 8 Division I of the bill repeals the property assessment 9 appeal board’s future repeal provisions, including the 2013 and 10 2015 amendments to those provisions. The bill also strikes a 11 limitation in Code section 441.37A regarding the assessment 12 years for which the property assessment appeal board may hear 13 appeals. 14 For appeals to the property assessment appeal board for 15 assessment years beginning on or after January 1, 2018, 16 the bill provides that if the board decides in favor of the 17 property owner or taxpayer and the assessment is reduced, the 18 assessor is responsible for a percentage of the reasonable 19 costs of the appeal incurred by the owner or taxpayer that is 20 equal to the percentage reduction in the assessment. The bill 21 also establishes similar provisions for the reasonable costs of 22 the owner or taxpayer related to an appeal to district court 23 for assessment years beginning on or after January 1, 2018. 24 Current Code section 441.21(3) specifies a burden of proof 25 for taxpayer protests or appeals of property assessments 26 made by local assessors. The current standard imposes a 27 burden of proof on the complainant attacking the valuation as 28 excessive, inadequate, inequitable, or capricious. Only after 29 the complainant, at the protest or appeal proceedings, offers 30 competent evidence by at least two disinterested witnesses 31 that the market value of the property is less than the market 32 value determined by the assessor does the burden of proof shift 33 to the officials or persons seeking to uphold the assessor’s 34 valuation. 35 -10- LSB 2693YC (1) 87 md/sc/jh 10/ 12

H.F. _____ Division II of the bill provides that for assessment years 1 beginning on or after January 1, 2018, when a valuation is 2 protested or appealed by a complainant, the burden of proof 3 shall be upon the assessor to demonstrate that such valuation 4 is not excessive, inadequate, inequitable, or capricious. 5 Division III of the bill increases the membership of county 6 and city conference boards by requiring the addition of four 7 elected public members. The four public members are elected 8 on a nonpartisan basis by the applicable voters of the county 9 or city at the general election or regular city election, 10 as applicable. The bill provides that a person seeking 11 election as a public member of a conference board must only 12 file an affidavit of candidacy. Each public member seat on 13 the conference board may only be held by an individual who 14 owns or holds an interest in taxable property located in the 15 appropriate jurisdiction that is classified as residential, 16 agricultural, commercial, or industrial property. Each of 17 the four property classifications is assigned to one of the 18 four public member seats and designated as such on the ballot. 19 The bill provides that a public member seat is not limited by 20 property classification if that property classification is not 21 present within the jurisdiction. The four public members each 22 serve a four-year term and may be reelected for additional 23 four-year terms. The four public members each constitute a 24 separate voting unit. A vacancy among the public member seats 25 prior to the expiration of a term is filled by appointment by 26 the remaining public members of the conference board. Such an 27 appointment is for the period until the next pending election. 28 By operation of current Code section 441.3, the addition 29 of the four public members to the conference board results in 30 an additional four appointments to the examining board of the 31 applicable assessing jurisdiction. 32 Division IV of the bill modifies provisions relating to 33 even-numbered assessment years by providing that the assessor 34 shall value and assess or revalue and reassess, as the case 35 -11- LSB 2693YC (1) 87 md/sc/jh 11/ 12

H.F. _____ may require, any individual real estate parcel that the 1 assessor finds was assessed for more than the value authorized 2 by law or was not listed in the assessment year immediately 3 preceding, and any real estate the assessor finds has changed 4 in value subsequent to January 1 of the preceding real estate 5 assessment year based on buildings erected, improvements made, 6 or buildings or improvements removed in a year after the 7 assessment. The bill also provides that a percentage increase 8 for an even-numbered assessment year shall be applied to all 9 property within the class and shall not be applied only to 10 a subset of the class unless approved by the department of 11 revenue. 12 Division IV of the bill also modifies the grounds upon 13 which a property owner or aggrieved taxpayer may protest 14 an assessment under Code section 441.37. The bill strikes 15 the grounds in current law that are applicable only to 16 even-numbered assessment years and allows those grounds only 17 authorized for odd-numbered assessment years to be asserted in 18 any assessment year. 19 Division IV of the bill applies to assessment years 20 beginning on or after January 1, 2018. 21 Division IV of the bill also removes the local board of 22 review from the representation duties of the county attorney 23 and the city legal department in litigation involving 24 assessments when the county attorney or the city legal 25 department is representing the assessor. 26 Under the bill, the conference board may select an attorney 27 to act as county attorney or the city legal department, as 28 applicable, in litigation dealing with assessments only if 29 the county attorney or city legal department is disqualified 30 because of a conflict of interest. The bill specifies that the 31 county attorney or city legal department is responsible for the 32 payment of reasonable attorney fees and costs of the selected 33 attorney. 34 -12- LSB 2693YC (1) 87 md/sc/jh 12/ 12