House Study Bill 758 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON NORDMAN) A BILL FOR An Act relating to evidence and burdens of proof in property 1 tax assessment protests and appeals and including 2 retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6094YC (2) 91 ms/md

H.F. _____ Section 1. Section 441.21, subsection 3, paragraph b, Code 1 2026, is amended to read as follows: 2 b. (1) For assessment years beginning before January 3 1, 2018, the burden of proof shall be upon any complainant 4 attacking such valuation as excessive, inadequate, inequitable, 5 or capricious. However, in protest or appeal proceedings when 6 the complainant offers competent evidence by at least two 7 disinterested witnesses that the market value of the property 8 is less than the market value determined by the assessor, the 9 burden of proof thereafter shall be upon the officials or 10 persons seeking to uphold such valuation to be assessed. 11 (2) (1) For assessment years beginning on or after January 12 1, 2018, but before January 1, 2026, the burden of proof shall 13 be upon any complainant attacking such valuation as excessive, 14 inadequate, inequitable, or capricious. However, in protest 15 or appeal proceedings when the complainant offers competent 16 evidence that the market value of the property is different 17 than the market value determined by the assessor, the burden of 18 proof thereafter shall be upon the officials or persons seeking 19 to uphold such valuation to be assessed. 20 (2) For assessment years beginning on or after January 1, 21 2026, when the complainant offers evidence that the market 22 value of the property is different than the market value 23 determined by the assessor, the burden of proof shall be upon 24 the officials or persons seeking to uphold such valuation to 25 be assessed. 26 (3) If the classification of a property has been previously 27 adjudicated by the property assessment appeal board or a 28 court as part of an appeal under this chapter , there is a 29 presumption that the classification of the property has not 30 changed for each of the four subsequent assessment years, 31 unless a subsequent such adjudication of the classification of 32 the property has occurred, and the burden of demonstrating a 33 change in use shall be upon the person asserting a change to 34 the property’s classification. 35 -1- LSB 6094YC (2) 91 ms/md 1/ 3

H.F. _____ Sec. 2. Section 441.37, subsection 1, paragraph a, 1 subparagraph (1), subparagraph division (a), Code 2026, is 2 amended to read as follows: 3 (a) That said assessment is not equitable as compared with 4 assessments of other like property in the taxing district. 5 For assessment years beginning on or after January 1, 2026, 6 an assessment shall not be deemed equitable if the appraised 7 value of the property exceeds the median appraised value of a 8 reasonable number of similar and comparable properties in the 9 same geographical area. 10 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 11 retroactively to January 1, 2026, for assessment years 12 beginning on or after that date. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 Under current law, for assessment years on or after January 17 1, 2018, the burden of proof shall be upon any complainant 18 attacking a property valuation as excessive, inadequate, 19 inequitable, or capricious. When the complainant offers 20 competent evidence that the market value of the property is 21 different than the market value determined by the assessor, 22 the burden of proof thereafter shall be upon the officials or 23 persons seeking to uphold such valuation to be assessed. 24 This bill provides that, for assessment years beginning on 25 or after January 1, 2026, when the complainant offers evidence 26 that the market value of the property is different than the 27 market value determined by the assessor, the burden of proof 28 shall be upon the officials or persons seeking to uphold such 29 valuation to be assessed. 30 Under current law, when a property owner or aggrieved 31 taxpayer files an assessment protest, the protest must be 32 confined to certain grounds. One such ground is that the 33 assessment is not equitable as compared with assessments of 34 other like property in the taxing district. The bill specifies 35 -2- LSB 6094YC (2) 91 ms/md 2/ 3

H.F. _____ that an assessment shall not be deemed equitable if the 1 appraised value of the property exceeds the median appraised 2 value of a reasonable number of similar and comparable 3 properties in the same geographical area. 4 The bill applies retroactively to January 1, 2026, for 5 assessment years beginning on or after that date. 6 -3- LSB 6094YC (2) 91 ms/md 3/ 3