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House
File
563
-
Introduced
HOUSE
FILE
563
BY
SIECK
,
JENEARY
,
BAGNIEWSKI
,
MOORE
,
COLLINS
,
GOSA
,
SHIPLEY
,
MOMMSEN
,
SIEGRIST
,
WENGRYN
,
VONDRAN
,
DETERMANN
,
C.
JOHNSON
,
and
THOMPSON
A
BILL
FOR
An
Act
relating
to
property
assessment
standards
and
1
litigation.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
421.17,
subsection
6,
paragraph
b,
Code
1
2025,
is
amended
to
read
as
follows:
2
b.
(1)
The
director
shall
require
all
city
and
county
3
assessors
to
prepare
a
quarterly
report
in
the
manner
and
form
4
to
be
prescribed
by
the
director
showing
for
each
warranty
deed
5
or
contract
of
sale
of
real
estate,
divided
between
rural
and
6
urban,
during
the
last
completed
quarter
the
amount
of
real
7
property
transfer
tax,
the
sale
price
or
consideration,
and
the
8
equalized
value
at
which
that
property
was
assessed
that
year.
9
This
report
with
further
information
required
by
the
director
10
shall
be
submitted
to
the
department
within
sixty
days
after
11
the
end
of
each
quarter.
12
(2)
The
department
shall
prepare
annual
summaries
of
the
13
records
of
the
ratio
of
assessments
to
actual
sales
prices
14
for
all
counties,
and
for
cities
having
city
assessors
,
and
15
the
.
The
information
for
the
preceding
year
shall
be
available
16
for
public
inspection
by
May
1
,
and
shall
be
available
on
the
17
department’s
internet
website
for
a
minimum
of
twenty
years
18
from
the
date
of
publication
.
19
Sec.
2.
Section
421.17,
subsection
17,
Code
2025,
is
amended
20
to
read
as
follows:
21
17.
a.
To
prepare
and
issue
a
state
appraisal
manual
22
which
each
county
and
city
assessor
shall
use
in
assessing
and
23
valuing
all
classes
of
property
in
the
state.
24
b.
The
appraisal
manual
shall
be
continuously
revised
and
25
the
manual
and
revisions
shall
be
issued
to
the
county
and
26
city
assessors
in
such
form
and
manner
as
prescribed
by
the
27
director.
28
c.
Each
county
and
city
assessor
shall
use
the
most
recently
29
issued
manual
in
assessing
and
valuing
all
classes
of
property
30
in
the
state
within
two
years
of
the
publication
date
of
the
31
most
recently
issued
manual.
The
department
may
grant
an
32
extension
of
up
to
two
years
to
a
county
or
city
assessor
33
upon
request
and
demonstration
of
substantial
hardship
by
an
34
assessor.
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d.
When
preparing
the
state
appraisal
manual,
the
director
1
shall
adopt
standards
for
assessing
property
developed
and
2
published
by
the
international
association
of
assessing
3
officers.
Such
standards
must
include
all
of
the
following:
4
(1)
Use
of
a
coefficient
of
dispersion
analysis
in
5
determining
whether
properties
are
equitably
assessed.
6
Assessments
shall
maintain
a
coefficient
of
dispersion
less
7
than
fifteen
and
ninety-nine
hundredths
percent
unless
there
8
is
good
cause
for
a
variance.
9
(2)
Use
of
a
price-related
differential
analysis
in
10
determining
whether
properties
are
equitably
assessed.
11
Assessments
shall
maintain
a
price-related
differential
between
12
ninety-eight
hundredths
and
one
and
three
hundredths
unless
13
there
is
good
cause
for
a
variance.
14
Sec.
3.
Section
441.21,
subsection
1,
Code
2025,
is
amended
15
by
adding
the
following
new
paragraph:
16
NEW
PARAGRAPH
.
0i.
The
coefficient
of
dispersion
and
17
price-related
differentials
of
a
class
of
property
shall
be
18
calculated
based
on
comparisons
of
the
actual
value
of
property
19
in
the
same
class
within
the
state.
20
Sec.
4.
Section
441.37,
subsection
1,
paragraph
a,
21
subparagraph
(1),
subparagraph
division
(a),
Code
2025,
is
22
amended
to
read
as
follows:
23
(a)
That
said
assessment
is
not
equitable
as
compared
with
24
assessments
of
other
like
property
in
the
taxing
district.
25
Sec.
5.
Section
441.37,
subsection
1,
paragraph
a,
Code
26
2025,
is
amended
by
adding
the
following
new
subparagraph:
27
NEW
SUBPARAGRAPH
.
(04)
For
purposes
of
this
section,
“like
28
property”
means
all
property
within
a
given
class
of
property.
29
Sec.
6.
Section
441.41,
subsection
1,
Code
2025,
is
amended
30
to
read
as
follows:
31
1.
a.
In
the
case
of
cities
having
an
assessor,
the
city
32
legal
department
shall
represent
the
assessor
and
board
of
33
review
in
all
litigation
dealing
with
assessments.
In
the
case
34
of
counties,
the
county
attorney
shall
represent
the
assessor
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and
board
of
review
in
all
litigation
dealing
with
assessments.
1
Any
taxing
district
interested
in
the
taxes
received
from
such
2
assessments
may
be
represented
by
an
attorney
and
shall
be
3
required
to
appear
by
attorney
upon
written
request
of
the
4
assessor
to
the
presiding
officer
of
any
such
taxing
district.
5
Subject
6
b.
In
cases
where
the
opposing
party
is
a
legal
business
7
entity,
including
nonprofit
entities,
and
subject
to
review
and
8
prior
approval
by
either
the
city
legal
department
in
the
case
9
of
a
city
or
the
county
attorney
in
the
case
of
a
county,
the
10
conference
board
may
employ
special
counsel
to
assist
the
city
11
legal
department
or
county
attorney
as
the
case
may
be.
12
Sec.
7.
Section
441.42,
Code
2025,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
1A.
A
property
owner
may
appeal
the
15
assessment
of
any
property
to
the
board
of
review
or
a
court
16
with
jurisdiction
over
the
assessed
property
provided
that
the
17
assessed
property
is
located
in
a
taxing
district
to
which
the
18
property
owner
appealing
the
assessment
owns
property
of
the
19
same
class.
Appeals
made
pursuant
to
this
subsection
shall
be
20
made
in
accordance
with
section
441.37.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
property
assessment
standards
and
25
litigation.
26
The
international
association
of
assessing
officers
27
(IAAO)
is
a
nonprofit
professional
membership
organization
28
of
government
assessment
officials
and
others
interested
in
29
the
administration
of
the
property
tax.
The
IAAO
regularly
30
publishes
standards
related
to
property
assessments
with
31
the
goal
of
advancing
more
equitable
property
appraisals,
32
assessment
administration,
and
property
tax
policies.
33
Current
law
requires
the
director
of
the
department
of
34
revenue
(director)
to
prepare
and
issue
a
state
appraisal
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manual
which
each
county
and
city
assessor
must
use
to
assess
1
and
value
all
classes
of
property.
The
bill
requires
the
2
director
to
adopt
real
estate
property
assessment
standards
for
3
the
state
appraisal
manual
in
conformance
with
the
standards
4
developed
and
published
by
the
IAAO.
Such
standards
must
5
include
the
use
of
the
coefficient
of
dispersion
(COD)
and
6
price-related
differentials
(PRD).
7
COD
is
the
measure
of
the
spread
of
values
about
the
median
8
value
of
a
class
of
properties.
When
the
difference
between
9
the
median
value
of
a
class
of
properties
and
the
actual
value
10
to
sales
value
ratio
of
a
property
increases,
the
COD
will
11
increase
as
well.
CODs
above
a
certain
percentage
are
seen
as
12
inequitable.
The
bill
requires
assessors
to
maintain
a
COD
13
of
less
than
15.99
percent
unless
there
is
good
cause
for
a
14
variance.
15
PRD,
or
analysis
of
assessment
bias,
is
used
in
order
to
16
determine
whether
higher-valued
properties
are
overvalued
or
17
undervalued
in
relation
to
lower-valued
properties.
The
bill
18
requires
assessors
to
maintain
a
PRD
between
.98
and
1.03
19
unless
there
is
good
cause
for
a
variance.
20
The
bill
requires
the
COD
and
PRD
of
a
class
of
property
21
to
be
calculated
based
on
comparisons
of
the
actual
value
of
22
property
in
the
same
class.
23
The
bill
defines,
for
the
purposes
of
protesting
an
24
assessment,
“like
property”
as
all
property
within
a
given
25
class
of
property.
26
The
bill
limits
the
employment
of
special
counsel
to
assist
a
27
city
legal
department
or
county
attorney
in
litigation
dealing
28
with
assessments
to
cases
where
the
opposing
party
is
a
legal
29
business
entity,
including
a
nonprofit
entity.
Under
current
30
law,
a
city
legal
department
or
county
attorney
may
employ
31
special
counsel
to
assist
the
city
legal
department
or
county
32
attorney
in
any
litigation
dealing
with
assessments.
33
The
bill
allows
a
property
owner
to
appeal
the
assessment
34
of
any
other
property
provided
that
the
property
with
the
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assessment
to
be
appealed
is
located
in
a
taxing
district
to
1
which
the
property
owner
appealing
the
assessment
owns
property
2
of
the
same
class.
The
bill
requires
such
appeals
to
be
made
3
in
accordance
with
Code
section
441.37
(protest
of
assessment
4
——
grounds).
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