S.F. 356 Section 1. Section 331.559, subsection 20, Code 2017, is 1 amended to read as follows: 2 20. Apportion and collect the costs assessed by the district 3 court against the board of review or any taxing body district 4 resulting from an appeal of property assessments as provided 5 in section 441.40 . 6 Sec. 2. Section 428.4, subsection 1, Code 2017, is amended 7 to read as follows: 8 1. Property shall be assessed for taxation each year. 9 Real estate shall be listed and assessed in 1981 and every 10 two years thereafter. The assessment of real estate shall 11 be the value of the real estate as of January 1 of the year 12 of the assessment. The year 1981 and each odd-numbered year 13 thereafter shall be a reassessment year. In any year, after 14 the year in which an assessment has been made of all the real 15 estate in an assessing jurisdiction, the assessor shall value 16 and assess or revalue and reassess, as the case may require, 17 any real estate that the assessor finds was incorrectly valued 18 or assessed, or was not listed, valued, and assessed, in the 19 assessment year immediately preceding, also any real estate 20 the assessor finds has changed in value subsequent to January 21 1 of the preceding real estate assessment year. However, a 22 percentage increase on a class of property shall not be made 23 in a year not subject to an equalization order unless ordered 24 by the department of revenue. The assessor shall determine 25 the actual value and compute the taxable value thereof as of 26 January 1 of the year of the revaluation and reassessment. The 27 assessment shall be completed as specified in section 441.28 , 28 but no reduction or increase in actual value shall be made for 29 prior years. If an assessor makes a change in the valuation 30 of the real estate as provided for, sections 441.23 , 441.37 , 31 441.37A , and 441.38 , and 441.39 apply. 32 Sec. 3. Section 441.37A, subsection 1, Code 2017, is amended 33 to read as follows: 34 1. a. For the assessment year beginning January 1, 2007, 35 -1- LSB 1923SV (1) 87 md/sc/jh 1/ 10

S.F. 356 and all subsequent assessment years beginning before January 1, 1 2021, appeals Appeals may be taken from the action of the board 2 of review with reference to protests of assessment, valuation, 3 or application of an equalization order to the property 4 assessment appeal board created in section 421.1A . However, a 5 property owner or aggrieved taxpayer or an appellant described 6 in section 441.42 may bypass the property assessment appeal 7 board and appeal the decision of the local board of review to 8 the district court pursuant to section 441.38 . 9 b. For an appeal to the property assessment appeal board to 10 be valid, written notice must be filed by the party appealing 11 the decision with the secretary of the property assessment 12 appeal board a party must file an appeal with the board within 13 twenty days after the date of adjournment of the local board 14 of review or May 31, whichever is later. The written notice 15 of appeal shall include a petition setting forth the basis of 16 the appeal and the relief sought. No new grounds in addition 17 to those set out in the protest to the local board of review 18 as provided in section 441.37 can be pleaded, but additional 19 evidence to sustain those grounds may be introduced. The 20 assessor shall have the same right to appeal to the assessment 21 appeal board as an individual taxpayer, public body, or other 22 public officer as provided in section 441.42 . An appeal to the 23 board is a contested case under chapter 17A . 24 c. Filing of the written notice of appeal and petition 25 with the secretary of the property assessment appeal board 26 shall preserve all rights of appeal of the appellant, except as 27 otherwise provided in subsection 2 . A copy of the appellant’s 28 written notice of appeal and petition shall be mailed by the 29 secretary of the property assessment appeal board to the local 30 board of review whose decision is being appealed. 31 d. In all cases where a change in assessed valuation of one 32 hundred thousand dollars or more is petitioned for, the local 33 board of review shall mail a copy of the written notice of 34 appeal and petition to all affected taxing districts as shown 35 -2- LSB 1923SV (1) 87 md/sc/jh 2/ 10

S.F. 356 on the last available tax list. A copy of the appellant’s 1 appeal shall be sent by the property assessment appeal board to 2 the local board of review whose decision is being appealed. 3 e. The property assessment appeal board may, by rule, 4 provide for the filing of a notice of appeal and petition with 5 the secretary of the board an appeal by electronic means. All 6 requirements of this section for an appeal to the board shall 7 apply to an appeal filed electronically. 8 Sec. 4. Section 441.37A, subsection 2, paragraph b, Code 9 2017, is amended to read as follows: 10 b. Each appeal may be considered by one or more members of 11 the board, and the chairperson of the board may assign members 12 to consider appeals. If a hearing is requested, it shall be 13 open to the public and shall be conducted in accordance with 14 the rules of practice and procedure adopted by the board. The 15 board may provide by rule for participation in such hearings 16 by telephone or other means of electronic communication. 17 However, any deliberation of the board or of board members 18 considering the appeal in reaching a decision on any appeal 19 shall be confidential. Any deliberation of the board or of 20 board members to rule on procedural motions in a pending appeal 21 or to deliberate on the decision to be reached in an appeal 22 is exempt from the provisions of chapter 21 . The property 23 assessment appeal board or any member of the board considering 24 the appeal may require the production of any books, records, 25 papers, or documents as evidence in any matter pending before 26 the board that may be material, relevant, or necessary for the 27 making of a just decision. Any books, records, papers, or 28 documents produced as evidence shall become part of the record 29 of the appeal. Any testimony given relating to the appeal 30 shall be transcribed electronically recorded and made a part of 31 the record of the appeal. 32 Sec. 5. Section 441.37A, subsection 3, Code 2017, is amended 33 to read as follows: 34 3. a. The burden of proof for all appeals before the 35 -3- LSB 1923SV (1) 87 md/sc/jh 3/ 10

S.F. 356 board shall be as stated in section 441.21, subsection 3 . The 1 board members considering the appeal shall determine anew all 2 questions arising before the local board of review which that 3 relate to the liability of the property to assessment or the 4 amount thereof of the assessment . All of the evidence shall 5 be considered and there shall be no presumption as to the 6 correctness of the valuation of assessment appealed from. The 7 property assessment appeal board shall issue a decision in each 8 appeal filed with the board. If the appeal is considered by 9 less than the full membership of the board, the determination 10 made by such members shall be forwarded to the full board 11 for approval, rejection, or modification. If the initial 12 determination is rejected by the board, it shall be returned 13 for reconsideration to the board members making the initial 14 determination. Any deliberation of the board regarding an 15 initial determination shall be confidential. 16 b. The decision of the board shall be considered the final 17 agency action for purposes of further appeal, and is subject 18 to judicial review as provided in section 441.37B, except as 19 otherwise provided in section 441.49 . The decision shall be 20 final unless appealed to district court as provided in section 21 441.38 . A decision of the board modifying an assessment shall 22 be sent to the county auditor and the assessor, who shall 23 correct the assessment books accordingly. An appeal of the 24 board’s decision under section 441.37B shall not itself stay 25 execution or enforcement of the board’s decision. 26 c. The levy of taxes on any assessment appealed to the board 27 shall not be delayed by any proceeding before the board, and 28 if the assessment appealed from is reduced by the decision of 29 the board, any taxes levied upon that portion of the assessment 30 reduced shall be abated or, if already paid, shall , by order 31 of the board, be refunded or credited against future property 32 taxes levied against the property . 33 d. If the subject of an appeal is the application of an 34 equalization order, the property assessment appeal board shall 35 -4- LSB 1923SV (1) 87 md/sc/jh 4/ 10

S.F. 356 not order a reduction in assessment greater than the amount 1 that the assessment was increased due to application of the 2 equalization order. 3 e. Each party to the appeal shall be responsible for the 4 costs of the appeal incurred by that party. 5 Sec. 6. NEW SECTION . 441.37B Appeal to district court from 6 property assessment appeal board. 7 A party who is aggrieved or adversely affected by an 8 action of the property assessment appeal board may seek 9 judicial review of the action as provided in chapter 17A. 10 Notwithstanding section 17A.19, subsection 2, a petition for 11 judicial review of the action of the property assessment appeal 12 board shall be filed in the district court of the county where 13 the property that is subject to the appeal is located. 14 Sec. 7. Section 441.38, Code 2017, is amended to read as 15 follows: 16 441.38 Appeal to district court from local board of review . 17 1. Appeals may be taken from the action of the local board 18 of review with reference to protests of assessment, to the 19 district court of the county in which the board holds its 20 sessions within twenty days after its the board’s adjournment 21 or May 31, whichever date is later. Appeals may be taken from 22 the action of the property assessment appeal board to the 23 district court of the county where the property which is the 24 subject of the appeal is located within twenty days after the 25 letter of disposition of the appeal by the property assessment 26 appeal board is postmarked to the appellant. No new grounds 27 in addition to those set out in the protest to the local board 28 of review as provided in section 441.37 , or in addition to 29 those set out in the appeal to the property assessment appeal 30 board, if applicable, can be pleaded. Additional evidence 31 to sustain those grounds may be introduced in an appeal from 32 the local board of review to the district court . However, no 33 new evidence to sustain those grounds may be introduced in 34 an appeal from the property assessment appeal board to the 35 -5- LSB 1923SV (1) 87 md/sc/jh 5/ 10

S.F. 356 district court. The assessor shall have the same right to 1 appeal and in the same manner as an individual taxpayer, public 2 body, or other public officer as provided in section 441.42 . 3 Appeals shall be taken by filing a written notice of appeal 4 with the clerk of district court. Filing of the written notice 5 of appeal shall preserve all rights of appeal of the appellant. 6 2. If the appeal to district court is taken from the action 7 of the local board of review, notice Notice of appeal shall 8 be served as an original notice on the chairperson, presiding 9 officer, or clerk of the board of review after the filing of 10 notice under subsection 1 with the clerk of district court. If 11 the appeal to district court is taken from the action of the 12 property assessment appeal board, notice of appeal shall be 13 served as an original notice on the secretary of the property 14 assessment appeal board after the filing of notice under 15 subsection 1 with the clerk of district court. 16 3. The court shall hear the appeal in equity and determine 17 anew all questions arising before the board of review that 18 relate to the liability of the property to assessment or 19 the amount of the assessment. The court shall consider all 20 of the evidence and there shall be no presumption as to the 21 correctness of the valuation or assessment appealed from. The 22 court’s decision shall be certified by the clerk of the court 23 to the county auditor and the assessor, who shall correct the 24 assessment books accordingly. 25 Sec. 8. Section 441.39, Code 2017, is amended by striking 26 the section and inserting in lieu thereof the following: 27 441.39 Notice of assessment protests and appeals to taxing 28 districts. 29 1. If a property owner or aggrieved taxpayer appeals a 30 decision of the board of review to the property assessment 31 appeal board or to district court and requests an adjustment in 32 valuation of one hundred thousand dollars or more, the assessor 33 shall notify all affected taxing districts as shown on the last 34 available tax list. 35 -6- LSB 1923SV (1) 87 md/sc/jh 6/ 10

S.F. 356 2. In addition to any other requirement for providing 1 of notice, if a property owner or aggrieved taxpayer files 2 a protest against the assessment of property valued by the 3 assessor at five million dollars or more or files an appeal 4 to the property assessment appeal board or the district court 5 with regard to such property, the assessor shall provide notice 6 to the school district in which such property is located 7 within ten days of the filing of the protest or the appeal, as 8 applicable. 9 Sec. 9. Section 441.40, Code 2017, is amended to read as 10 follows: 11 441.40 Costs, fees, and expenses apportioned. 12 The clerk of the court shall likewise certify to the county 13 treasurer the costs assessed by the court on any appeal from a 14 board of review to the district court, in all cases where said 15 the costs are taxed against the board of review or any taxing 16 body district . Thereupon the county treasurer shall compute 17 and apportion the said costs between the various taxing bodies 18 districts participating in the proceeds of the collection of 19 the taxes involved in any such appeal, and said the treasurer 20 shall so compute and apportion the various amounts which said 21 the taxing bodies districts are required to pay in proportion 22 to the amount of taxes each of said the taxing bodies districts 23 is entitled to receive from the whole amount of taxes involved 24 in each of such appeals. The said county treasurer shall 25 deduct from the proceeds of all general taxes collected the 26 amount of costs so computed and apportioned by the treasurer 27 from the moneys due to each taxing body district from general 28 taxes collected. The amount so deducted shall be certified to 29 each taxing body district in lieu of moneys collected. Said 30 The county treasurer shall pay to the clerk of the district 31 court the amount of said the costs so computed, apportioned , 32 and collected by the treasurer in all cases now on file or 33 hereafter filed in which said the costs have not been paid. 34 Sec. 10. Section 441.41, Code 2017, is amended to read as 35 -7- LSB 1923SV (1) 87 md/sc/jh 7/ 10

S.F. 356 follows: 1 441.41 Legal counsel. 2 In the case of cities having an assessor, the city legal 3 department shall represent the assessor and board of review 4 in all litigation dealing with assessments. In the case of 5 counties, the county attorney shall represent the assessor and 6 board of review in all litigation dealing with assessments. 7 Any taxing body district interested in the taxes received from 8 such assessments may be represented by an attorney and shall 9 be required to appear by attorney upon written request of the 10 assessor to the presiding officer of any such taxing body 11 district . The conference board may employ special counsel to 12 assist the city legal department or county attorney as the case 13 may be. 14 Sec. 11. Section 441.44, Code 2017, is amended to read as 15 follows: 16 441.44 Notice of voluntary settlement. 17 1. The property assessment appeal board may adopt rules 18 establishing requirements for notices of voluntary settlements 19 in appeals before the board to be served upon affected taxing 20 districts. 21 2. No A voluntary court settlement of an assessment appeal 22 shall not be valid unless written notice thereof of the 23 settlement shall first be served upon each of the affected 24 taxing bodies interested in the taxes derived from such 25 assessment districts . 26 Sec. 12. Section 443.11, Code 2017, is amended to read as 27 follows: 28 443.11 Procedure on appeal. 29 The appeal provided for in section 443.8 shall be taken 30 within ten days from the time of the final action of the 31 assessor or auditor, by a written notice to that effect to the 32 assessor or auditor, and served as an original notice. The 33 court on appeal shall hear and determine the rights of the 34 parties in the same manner as appeals from the board of review, 35 -8- LSB 1923SV (1) 87 md/sc/jh 8/ 10

S.F. 356 as prescribed in sections 441.39 441.38 and 441.43 . 1 Sec. 13. Section 602.8102, subsection 61, Code 2017, is 2 amended to read as follows: 3 61. Certify the final decision of the district court 4 in an appeal of the tax assessments as provided in section 5 441.39 441.37B or 441.38 . Costs of the appeal to be assessed 6 against the board of review or a taxing body district shall be 7 certified to the treasurer as provided in section 441.40 . 8 Sec. 14. REPEAL. 2005 Iowa Acts, chapter 150, section 134, 9 as amended by 2013 Iowa Acts, chapter 123, section 62, and 2015 10 Iowa Acts, chapter 109, section 1, is repealed. 11 Sec. 15. REPEAL. Sections 441.38A and 441.38B, Code 2017, 12 are repealed. 13 Sec. 16. APPLICABILITY. This Act applies to assessment 14 years beginning on or after January 1, 2018. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 In 2005, the property assessment appeal board was 19 established. The legislation establishing the property 20 assessment appeal board included a future repeal of the board 21 effective July 1, 2013. This future repeal provision was 22 amended in 2013 to extend the date of the repeal to July 1, 23 2018. In 2015, the future repeal provision was again extended 24 from July 1, 2018, to July 1, 2021. 25 This bill repeals the property assessment appeal board’s 26 future repeal provisions, including the 2013 and 2015 27 amendments to those provisions, and makes corresponding 28 changes. 29 The bill also modifies language regarding the form of filing 30 of appeals with the property assessment appeal board by no 31 longer requiring a separate notice of appeal and a petition, 32 but instead only requiring the appeal to include the contents 33 currently required to be in the petition. 34 The bill provides that testimony given relating to an appeal 35 -9- LSB 1923SV (1) 87 md/sc/jh 9/ 10

S.F. 356 before the board is required to be electronically recorded, 1 instead of transcribed as required under current law. 2 The bill strikes a provision of current law that requires any 3 deliberation of the board regarding an initial determination 4 to be confidential. 5 The bill strikes provisions in Code section 441.38 governing 6 appeals from the property assessment appeal board to district 7 court and specifies that judicial review of board decisions are 8 governed by Code chapter 17A (Iowa administrative procedure 9 Act). However, the bill requires petitions for judicial review 10 to be filed in the county where the property subject to the 11 appeal is located, without the option of filing in Polk county 12 district court. 13 Current law requires that tax amounts reduced due to a 14 reduction in the assessment by the property assessment appeal 15 board be refunded if the taxes have already been paid. The 16 bill provides that the reduced amount may be refunded or 17 credited against future property tax liability. 18 The bill authorizes the property assessment appeal board to 19 adopt rules establishing requirements for notices of voluntary 20 settlements in appeals before the board to be served upon 21 affected taxing districts. 22 The bill also makes corresponding changes and reorganizes 23 some provisions governing the property assessment appeal board. 24 The bill applies to assessment years beginning on or after 25 January 1, 2018. 26 -10- LSB 1923SV (1) 87 md/sc/jh 10/ 10