Bill Text: IA HF443 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act providing for the future repeal of the state board of tax review, providing for appeals to the director of revenue for certain tax matters and modifying the powers and duties of the director of revenue, and including effective date and applicability provisions. (Formerly HSB 73) (See Cmte. Bill HF 626)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-04-14 - Withdrawn. H.J. 835. [HF443 Detail]

Download: Iowa-2015-HF443-Introduced.html

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House File 443 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON STATE
                                     GOVERNMENT

                                 (SUCCESSOR TO HSB 73)

                                      A BILL FOR

  1 An Act providing for the future repeal of the state board of
  2    tax review, providing for appeals to the director of revenue
  3    for certain tax matters and modifying the powers and duties
  4    of the director of revenue, and including effective date and
  5    applicability provisions.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1383HV (3) 86
    mm/sc

PAG LIN



  1  1                           DIVISION I
  1  2                        FUTURE REPEAL OF
  1  3             STATE BOARD OF TAX REVIEW == TRANSITION
  1  4    Section 1.  Section 421.1, Code 2015, is amended by adding
  1  5 the following new subsection:
  1  6    NEW SUBSECTION.  6.  Future repeal.
  1  7    a.  Notwithstanding subsection 5 or any other provision of
  1  8 law to the contrary, a party shall not appeal to the state
  1  9 board, nor shall the state board accept for review, any
  1 10 decision, order, directive, or assessment of the director of
  1 11 revenue or the department on or after the effective date of
  1 12 this division of this Act.
  1 13    b.  This section is repealed upon the occurrence of one of
  1 14 the following, whichever is earlier:
  1 15    (1)  The final disposition by the state board of all cases
  1 16 pending before the board on the effective date of this division
  1 17 of this Act.  The chairperson of the board shall notify the
  1 18 Iowa Code editor upon the occurrence of this condition.
  1 19    (2)  July 1, 2016.
  1 20    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This division of this
  1 21 Act, being deemed of immediate importance, takes effect upon
  1 22 enactment.
  1 23                           DIVISION II
  1 24                      CORRESPONDING CHANGES
  1 25    Sec. 3.  Section 68B.35, subsection 2, paragraph e, Code
  1 26 2015, is amended to read as follows:
  1 27    e.  Members of the state banking council, the ethics and
  1 28 campaign disclosure board, the credit union review board, the
  1 29 economic development authority, the employment appeal board,
  1 30 the environmental protection commission, the health facilities
  1 31 council, the Iowa finance authority, the Iowa public employees'
  1 32 retirement system investment board, the board of the Iowa
  1 33 lottery authority, the natural resource commission, the board
  1 34 of parole, the petroleum underground storage tank fund board,
  1 35 the public employment relations board, the state racing and
  2  1 gaming commission, the state board of regents, the tax review
  2  2 board, the transportation commission, the office of consumer
  2  3 advocate, the utilities board, the Iowa telecommunications
  2  4 and technology commission, and any full=time members of other
  2  5 boards and commissions as defined under section 7E.4 who
  2  6 receive an annual salary for their service on the board or
  2  7 commission. The Iowa ethics and campaign disclosure board
  2  8 shall conduct an annual review to determine if members of any
  2  9 other board, commission, or authority should file a statement
  2 10 and shall require the filing of a statement pursuant to rules
  2 11 adopted pursuant to chapter 17A.
  2 12    Sec. 4.  Section 421.17, subsection 19, paragraph b, Code
  2 13 2015, is amended to read as follows:
  2 14    b.  (1)  The provisions of sections 17A.10 to 17A.18A
  2 15 relating to contested cases shall not apply to any matters
  2 16 involving the equalization of valuations of classes of property
  2 17 as authorized by this chapter and chapter 441.
  2 18    (2)  (a)  This exemption from the provisions of sections
  2 19 17A.10 to 17A.18A shall not apply to a hearing before the state
  2 20 board of tax review.
  2 21    (b)  This subparagraph is repealed July 1, 2016.
  2 22    (3)  This exemption from the provisions of sections 17A.10
  2 23 to 17A.18A shall not apply to a hearing before the director as
  2 24 provided in section 441.49, subsection 5.
  2 25    Sec. 5.  Section 421.60, subsection 4, paragraph a,
  2 26 unnumbered paragraph 1, Code 2015, is amended to read as
  2 27 follows:
  2 28    A prevailing taxpayer in an administrative hearing or a
  2 29 court proceeding related to the determination, collection, or
  2 30 refund of a tax, penalty, or interest may be awarded reasonable
  2 31 litigation costs by the department, state board of tax review,
  2 32  or a court, that are incurred subsequent to the issuance of
  2 33 the notice of assessment or denial of claim for refund in the
  2 34 proceeding, based upon the following:
  2 35    Sec. 6.  Section 425.7, subsection 3, Code 2015, is amended
  3  1 to read as follows:
  3  2    3.  a.  If the director department of revenue determines
  3  3 that a claim for homestead credit has been allowed by the board
  3  4 of supervisors which is not justifiable under the law and not
  3  5 substantiated by proper facts, the director department may, at
  3  6 any time within thirty=six months from July 1 of the year in
  3  7 which the claim is allowed, set aside the allowance. Notice
  3  8 of the disallowance shall be given to the county auditor of
  3  9 the county in which the claim has been improperly granted and
  3 10 a written notice of the disallowance shall also be addressed
  3 11 to the claimant at the claimant's last known address. The
  3 12 claimant or board of supervisors may appeal to the state board
  3 13 of tax review pursuant to section 421.1, subsection 5
  3 14 director of revenue within thirty days from the date of the
  3 15 notice of disallowance.  The director shall grant a hearing
  3 16 and if, upon the hearing, the director determines that the
  3 17 disallowance was incorrect, the director shall set aside the
  3 18 disallowance.  The director shall notify the claimant and
  3 19 the board of supervisors of the result of the hearing. The
  3 20 claimant or the board of supervisors may seek judicial review
  3 21 of the action of the state board of tax review director of
  3 22 revenue in accordance with chapter 17A.
  3 23    b.  If a claim is disallowed by the director department
  3 24  of revenue and not appealed to the state board of tax review
  3 25  director of revenue or appealed to the state board of tax
  3 26 review director of revenue and thereafter upheld upon final
  3 27 resolution, including any judicial review, any amounts of
  3 28 credits allowed and paid from the homestead credit fund
  3 29 including the penalty, if any, become a lien upon the property
  3 30 on which credit was originally granted, if still in the hands
  3 31 of the claimant, and not in the hands of a bona fide purchaser,
  3 32 and any amount so erroneously paid including the penalty, if
  3 33 any, shall be collected by the county treasurer in the same
  3 34 manner as other taxes and the collections shall be returned to
  3 35 the department of revenue and credited to the homestead credit
  4  1 fund. The director of revenue may institute legal proceedings
  4  2 against a homestead credit claimant for the collection of
  4  3 payments made on disallowed credits and the penalty, if any.
  4  4 If a person makes a false claim or affidavit with fraudulent
  4  5 intent to obtain the homestead credit, the person is guilty
  4  6 of a fraudulent practice and the claim shall be disallowed in
  4  7 full. If the credit has been paid, the amount of the credit
  4  8 plus a penalty equal to twenty=five percent of the amount of
  4  9 credit plus interest, at the rate in effect under section
  4 10 421.7, from the time of payment shall be collected by the
  4 11 county treasurer in the same manner as other property taxes,
  4 12 penalty, and interest are collected and when collected shall
  4 13 be paid to the director of revenue. If a homestead credit is
  4 14 disallowed and the claimant failed to give written notice to
  4 15 the assessor as required by section 425.2 when the property
  4 16 ceased to be used as a homestead by the claimant, a civil
  4 17 penalty equal to five percent of the amount of the disallowed
  4 18 credit is assessed against the claimant.
  4 19    Sec. 7.  Section 425.17, subsection 3, Code 2015, is amended
  4 20 to read as follows:
  4 21    3.  "Gross rent" means rental paid at arm's length for the
  4 22 right of occupancy of a homestead or manufactured or mobile
  4 23 home, including rent for space occupied by a manufactured or
  4 24 mobile home not to exceed one acre. If the director department
  4 25  of revenue determines that the landlord and tenant have
  4 26 not dealt with each other at arm's length, and the director
  4 27  department of revenue is satisfied that the gross rent charged
  4 28 was excessive, the director department shall adjust the gross
  4 29 rent to a reasonable amount as determined by the director
  4 30  department.
  4 31    Sec. 8.  Section 425.18, Code 2015, is amended to read as
  4 32 follows:
  4 33    425.18  Right to file a claim.
  4 34    The right to file a claim for reimbursement or credit under
  4 35 this division may be exercised by the claimant or on behalf
  5  1 of a claimant by the claimant's legal guardian, spouse, or
  5  2 attorney, or by the executor or administrator of the claimant's
  5  3 estate. If a claimant dies after having filed a claim for
  5  4 reimbursement for rent constituting property taxes paid, the
  5  5 amount of the reimbursement may be paid to another member of
  5  6 the household as determined by the director department of
  5  7 revenue. If the claimant was the only member of the household,
  5  8 the reimbursement may be paid to the claimant's executor or
  5  9 administrator, but if neither is appointed and qualified
  5 10 within one year from the date of the filing of the claim, the
  5 11 reimbursement shall escheat to the state. If a claimant dies
  5 12 after having filed a claim for credit for property taxes due,
  5 13 the amount of credit shall be paid as if the claimant had not
  5 14 died.
  5 15    Sec. 9.  Section 425.26, subsection 2, Code 2015, is amended
  5 16 to read as follows:
  5 17    2.  The director department may require any additional proof
  5 18 necessary to support a claim.
  5 19    Sec. 10.  Section 425.27, Code 2015, is amended to read as
  5 20 follows:
  5 21    425.27  Audit ==== recalculation or denial ==== appeals.
  5 22    If on the audit of a claim for credit or reimbursement
  5 23 under this division, the director department of revenue
  5 24  determines the amount of the claim to have been incorrectly
  5 25 calculated or that the claim is not allowable, the director
  5 26  department shall recalculate the claim and notify the claimant
  5 27 of the recalculation or denial and the reasons for it.  The
  5 28 recalculation of the claim shall be final unless appealed to
  5 29 the director within thirty days from the date of notice of
  5 30 recalculation or denial.  The director shall grant a hearing,
  5 31 and upon hearing determine the correct claim, if any, and
  5 32 notify the claimant of the decision by mail. The director
  5 33  department of revenue shall not adjust a claim after three
  5 34 years from October 31 of the year in which the claim was filed.
  5 35 If the claim for reimbursement has been paid, the amount may
  6  1 be recovered by assessment in the same manner that income
  6  2 taxes are assessed under sections 422.26 and 422.30. If the
  6  3 claim for credit has been paid, the director department of
  6  4 revenue shall give notification to the claimant and the county
  6  5 treasurer of the recalculation or denial of the claim and the
  6  6 county treasurer shall proceed to collect the tax owed in
  6  7 the same manner as other property taxes due and payable are
  6  8 collected, if the property on which the credit was granted
  6  9 is still owned by the claimant, and repay the amount to
  6 10 the director upon collection. If the property on which the
  6 11 credit was granted is not owned by the claimant, the amount
  6 12 may be recovered from the claimant by assessment in the same
  6 13 manner that income taxes are assessed under sections 422.26
  6 14 and 422.30. The recalculation of the claim decision of the
  6 15 director shall be final unless appealed as provided in section
  6 16 425.31. Section 422.70 is applicable with respect to this
  6 17 division.
  6 18    Sec. 11.  Section 425.29, Code 2015, is amended to read as
  6 19 follows:
  6 20    425.29  False claim == penalty.
  6 21    A person who makes a false affidavit for the purpose
  6 22 of obtaining credit or reimbursement provided for in this
  6 23 division or who knowingly receives the credit or reimbursement
  6 24 without being legally entitled to it or makes claim for the
  6 25 credit or reimbursement in more than one county in the state
  6 26 without being legally entitled to it is guilty of a fraudulent
  6 27 practice. The claim for credit or reimbursement shall be
  6 28 disallowed in full and if the claim has been paid the amount
  6 29 shall be recovered in the manner provided in section 425.27.
  6 30 The director department of revenue shall send a notice of
  6 31 disallowance of the claim.
  6 32    Sec. 12.  Section 425.31, Code 2015, is amended to read as
  6 33 follows:
  6 34    425.31  Appeals.
  6 35    Any person aggrieved by an act or decision of the director
  7  1 of revenue or the department of revenue under this division
  7  2 shall have the same rights of appeal and review as provided
  7  3 in sections 421.1 and section 423.38 and the rules of the
  7  4 department of revenue.
  7  5    Sec. 13.  Section 426A.6, Code 2015, is amended to read as
  7  6 follows:
  7  7    426A.6  Setting aside allowance.
  7  8    If the director department of revenue determines that a
  7  9 claim for military service tax exemption has been allowed by a
  7 10 board of supervisors which is not justifiable under the law and
  7 11 not substantiated by proper facts, the director department may,
  7 12 at any time within thirty=six months from July 1 of the year in
  7 13 which the claim is allowed, set aside the allowance. Notice
  7 14 of the disallowance shall be given to the county auditor of
  7 15 the county in which the claim has been improperly granted and
  7 16 a written notice of the disallowance shall also be addressed
  7 17 to the claimant at the claimant's last known address. The
  7 18 claimant or the board of supervisors may appeal to the state
  7 19 board of tax review pursuant to section 421.1, subsection 5
  7 20 director of revenue within thirty days from the date of the
  7 21 notice of disallowance.  The director shall grant a hearing
  7 22 and if, upon the hearing, the director determines that the
  7 23 disallowance was incorrect, the director shall set aside
  7 24 the disallowance.  The director shall notify the claimant
  7 25 and the board of supervisors of the result of the hearing.
  7 26 The claimant or the board of supervisors may seek judicial
  7 27 review of the action of the state board of tax review director
  7 28 of revenue in accordance with chapter 17A.  If a claim is
  7 29 disallowed by the director department of revenue and not
  7 30 appealed to the state board of tax review director of revenue
  7 31  or appealed to the state board of tax review director of
  7 32 revenue and thereafter upheld upon final resolution, including
  7 33 judicial review, the credits allowed and paid from the general
  7 34 fund of the state become a lien upon the property on which
  7 35 the credit was originally granted, if still in the hands of
  8  1 the claimant and not in the hands of a bona fide purchaser,
  8  2 the amount so erroneously paid shall be collected by the
  8  3 county treasurer in the same manner as other taxes, and the
  8  4 collections shall be returned to the department of revenue
  8  5 and credited to the general fund of the state. The director
  8  6 of revenue may institute legal proceedings against a military
  8  7 service tax exemption claimant for the collection of payments
  8  8 made on disallowed exemptions.
  8  9    Sec. 14.  Section 426C.7, Code 2015, is amended to read as
  8 10 follows:
  8 11    426C.7  Audit == recalculation or denial.
  8 12    1.  If on the audit of a credit provided under this chapter,
  8 13 the director department of revenue determines the amount of the
  8 14 credit to have been incorrectly calculated or that the credit
  8 15 is not allowable, the director department shall recalculate the
  8 16 credit and notify the claimant and the county auditor of the
  8 17 recalculation or denial and the reasons for it. The director
  8 18  department shall not adjust a credit after three years from
  8 19 October 31 of the year in which the claim for the credit was
  8 20 filed. If the credit has been paid, the director department
  8 21  shall give notification to the claimant, the county treasurer,
  8 22 and the applicable assessor of the recalculation or denial of
  8 23 the credit and the county treasurer shall proceed to collect
  8 24 the tax owed in the same manner as other property taxes due
  8 25 and payable are collected, if the parcel or property unit for
  8 26 which the credit was allowed is still owned by the claimant.
  8 27 If the parcel or property unit for which the credit was allowed
  8 28 is not owned by the claimant, the amount may be recovered from
  8 29 the claimant by assessment in the same manner that income taxes
  8 30 are assessed under sections 422.26 and 422.30. The amount of
  8 31 such erroneous credit, when collected, shall be deposited in
  8 32 the fund.
  8 33    2.  The claimant or board of supervisors may appeal any
  8 34 decision of the director department of revenue to the state
  8 35 board of tax review pursuant to section 421.1, subsection 5
  9  1 director of revenue within thirty days from the date of the
  9  2 notice of the recalculation or denial provided to the claimant
  9  3 and county auditor.  The director shall grant a hearing, and
  9  4 upon hearing the director shall determine the correct credit,
  9  5 if any, and notify the claimant, board of supervisors, county
  9  6 auditor, and county treasurer of the decision by mail. The
  9  7 claimant, or the board of supervisors, or the director of
  9  8 revenue may seek judicial review of the action of the state
  9  9 board of tax review director of revenue in accordance with
  9 10 chapter 17A.
  9 11    Sec. 15.  Section 426C.8, Code 2015, is amended to read as
  9 12 follows:
  9 13    426C.8  False claim == penalty.
  9 14    A person who makes a false claim for the purpose of obtaining
  9 15 a credit provided for in this chapter or who knowingly receives
  9 16 the credit without being legally entitled to it is guilty of a
  9 17 fraudulent practice. The claim for a credit of such a person
  9 18 shall be disallowed and if the credit has been paid the amount
  9 19 shall be recovered in the manner provided in section 426C.7.
  9 20 In such cases, the director department of revenue shall send a
  9 21 notice of disallowance of the credit.
  9 22    Sec. 16.  Section 428.28, Code 2015, is amended to read as
  9 23 follows:
  9 24    428.28  Annual report by utility.
  9 25    1.  Every individual, partnership, corporation, or
  9 26 association operating for profit, waterworks, other than
  9 27 waterworks taxed under chapter 437B, or gasworks or pipelines
  9 28 other than natural gas pipelines permitted pursuant to
  9 29 chapter 479, annually on or before May 1 of each calendar
  9 30 year, shall make a report on blanks to be provided by the
  9 31 department of revenue of all of the property owned by such
  9 32 individual, partnership, corporation, or association within the
  9 33 incorporated limits of any city in the state, and give such
  9 34 other information as the director department of revenue shall
  9 35 require.
 10  1    2.  Every individual, partnership, corporation, or
 10  2 association which operates a public utility on a nonprofit
 10  3 basis other than a utility subject to tax under chapter 437A
 10  4 or chapter 437B, as defined in section 428.24 shall annually,
 10  5 on or before May 1 of each calendar year, make a report on
 10  6 blanks to be provided by the department of revenue of all of
 10  7 the property owned by the individual, partnership, corporation,
 10  8 or association within the incorporated limits of any city in
 10  9 the state, and give other information the director department
 10 10  of revenue requires.
 10 11    Sec. 17.  Section 428.29, Code 2015, is amended to read as
 10 12 follows:
 10 13    428.29  Assessment and certification.
 10 14    The director department of revenue shall on or before
 10 15 October 31 each year proceed to determine, upon the basis
 10 16 of the data required in the report under section 428.28 and
 10 17 any other information the director department may obtain,
 10 18 the actual value of all property, subject to the director's
 10 19  department's jurisdiction, of said individual, partnership,
 10 20 corporation, or association, and shall make assessments upon
 10 21 the taxable value of the property, as provided by section
 10 22 441.21. The director department of revenue shall, on or before
 10 23 October 31, certify to the county auditor of every county in
 10 24 the state the valuations fixed for assessment upon all such
 10 25 property in each and every taxing district in each county by
 10 26 the department of revenue. This valuation shall then be spread
 10 27 upon the books in the same manner as other valuations fixed
 10 28 by the department of revenue upon property assessed under the
 10 29 department's jurisdiction.
 10 30    Sec. 18.  Section 429.1, Code 2015, is amended to read as
 10 31 follows:
 10 32    429.1  Notice of assessment.
 10 33    The director department of revenue shall, at the time of
 10 34 making the assessment of property as provided in chapters 428,
 10 35 433, 434, 437, and 438, inform the person assessed, by mail,
 11  1 of the valuation put upon the taxpayer's property. The notice
 11  2 shall contain a notice of the taxpayer's right of appeal to the
 11  3 state board of tax review director of revenue as provided in
 11  4 section 429.2.
 11  5    Sec. 19.  Section 429.2, Code 2015, is amended to read as
 11  6 follows:
 11  7    429.2  Appeal.
 11  8    1.  Notwithstanding the provisions of chapter 17A, the The
 11  9  taxpayer shall have thirty days from the date of the notice of
 11 10 assessment to appeal the assessment to the state board of tax
 11 11 review director of revenue. Thereafter, the proceedings before
 11 12 the state board of tax review director of revenue shall conform
 11 13 to the provisions of subsection 2, section 421.1, subsection
 11 14 5, and chapter 17A.
 11 15    2.  The following rules shall apply to the appeal proceedings
 11 16 in addition to those stated in section 421.1, subsection 5, and
 11 17  chapter 17A:
 11 18    a.  The department's assessment shall be presumed correct
 11 19 and the burden of proof shall be on the taxpayer with respect
 11 20 to all issues raised on appeal, including any challenge of the
 11 21 director's department's valuation.
 11 22    b.  The burden of proof must be carried by a preponderance of
 11 23 the evidence.
 11 24    c.  The board director of revenue shall consider all evidence
 11 25 and witnesses offered by the taxpayer and the department,
 11 26 including, but not limited to, evidence relating to the proper
 11 27 valuation of the property involved.
 11 28    d.  The board director of revenue shall make an independent
 11 29 determination of the value of the property based solely upon
 11 30 its the director's review of the evidence presented.
 11 31    e.  Upon the request of a party, the board director of
 11 32 revenue shall set the case for hearing within one year of
 11 33 the date of the request, unless for good cause shown, by
 11 34 application and ruling thereon after notice and not ex parte,
 11 35 the hearing date is continued by the board director of revenue.
 12  1    Sec. 20.  Section 429.3, Code 2015, is amended to read as
 12  2 follows:
 12  3    429.3  Judicial review.
 12  4    Judicial review of the action of the state board of tax
 12  5 review director of revenue may be sought by the taxpayer or the
 12  6 director of revenue in accordance with the terms of chapter
 12  7 17A.
 12  8    Sec. 21.  Section 433.1, unnumbered paragraph 1, Code 2015,
 12  9 is amended to read as follows:
 12 10    Every telegraph and telephone company operating a line in
 12 11 this state shall, on or before the first day of May in each
 12 12 year, furnish to the director department of revenue a statement
 12 13 verified by its president or secretary showing:
 12 14    Sec. 22.  Section 433.2, Code 2015, is amended to read as
 12 15 follows:
 12 16    433.2  Additional statement.
 12 17    Upon the receipt of the statements required in section 433.1
 12 18 from the several companies, the director department of revenue
 12 19 shall examine the statements. If the director department deems
 12 20 the statements insufficient and that further information is
 12 21 requisite, the director department shall require the officer
 12 22 making the statements to make such other or further statement
 12 23 as the director department may desire.
 12 24    Sec. 23.  Section 433.3, Code 2015, is amended to read as
 12 25 follows:
 12 26    433.3  Failure to make statement.
 12 27    In case of failure or refusal of any company to make out or
 12 28 deliver to the director department of revenue the statements
 12 29 required in section 433.1, such company shall forfeit and pay
 12 30 to the state one hundred dollars for each day such report is
 12 31 delayed beyond the first day of May, to be sued and recovered
 12 32 in any proper form of action in the name of the state, and on
 12 33 the relation of the director of revenue, and such penalty, when
 12 34 collected, shall be paid into the general fund of the state.
 12 35    Sec. 24.  Section 433.4, subsection 1, Code 2015, is amended
 13  1 to read as follows:
 13  2    1.  The director department of revenue shall on or before
 13  3 October 31 each year, find the actual value of the property of
 13  4 telegraph and telephone companies in this state that is used
 13  5 by the companies in the transaction of telegraph and telephone
 13  6 business, taking into consideration the information obtained
 13  7 from the statements required, and any further information the
 13  8 director department can obtain, using the same as a means for
 13  9 determining the actual value of the property of the companies
 13 10 within this state. The director department shall also take
 13 11 into consideration the valuation of all property of the
 13 12 companies, including franchises and the use of the property
 13 13 in connection with lines outside the state, and making these
 13 14 deductions as may be necessary on account of extra value of
 13 15 property outside the state as compared with the value of
 13 16 property in the state, in order that the actual value of the
 13 17 property of the company within this state may be ascertained.
 13 18 The assessment shall include all property of every kind
 13 19 and character whatsoever, real, personal, or mixed, used by
 13 20 the companies in the transaction of telegraph and telephone
 13 21 business. The property so included in the assessment shall not
 13 22 be taxed in any other manner than as provided in this chapter.
 13 23    Sec. 25.  Section 433.5, Code 2015, is amended to read as
 13 24 follows:
 13 25    433.5  Actual value per mile == exemption value per mile.
 13 26    1.  The director department of revenue shall ascertain the
 13 27 actual value per mile of the property of each company within
 13 28 this state by dividing the total actual value, as ascertained
 13 29 under section 433.4, subsection 1, by the number of miles of
 13 30 line of such company within the state, and the result shall be
 13 31 deemed and held to be the actual value per mile of line of the
 13 32 property of such company within this state.
 13 33    2.  The director department of revenue shall ascertain the
 13 34 exemption value per mile of the property of each company within
 13 35 this state by dividing the amount of the exemption for that
 14  1 company determined under section 433.4, subsection 2, by the
 14  2 number of miles of line of such company within the state, and
 14  3 the result shall be deemed and held to be the exemption value
 14  4 per mile of line for that company.
 14  5    Sec. 26.  Section 433.7, Code 2015, is amended to read as
 14  6 follows:
 14  7    433.7  Hearing.
 14  8    At the time of determination of value by the director
 14  9  department of revenue, any company interested shall have the
 14 10 right to appear, by its officers or agents, before the director
 14 11  department of revenue and be heard on the question of the
 14 12 valuation of its property for taxation.
 14 13    Sec. 27.  Section 433.8, Code 2015, is amended to read as
 14 14 follows:
 14 15    433.8  Assessment in each county == how certified.
 14 16    The director department of revenue shall, for the purpose
 14 17 of determining what amount shall be assessed to each company
 14 18 in each county of the state into which the line of the said
 14 19 company extends, certify to the several county auditors of the
 14 20 respective counties into, over, or through which said line
 14 21 extends the number of miles of line in the county for that
 14 22 company, the actual value per mile of line for that company,
 14 23 and the exemption value per mile of line for that company.
 14 24    Sec. 28.  Section 433.9, Code 2015, is amended to read as
 14 25 follows:
 14 26    433.9  Entry of certificate.
 14 27    At the first meeting of the board of supervisors held after
 14 28 the certification made under section 433.8 is received by
 14 29 the county auditor, the board shall cause such certification
 14 30 to be entered in its minute book, and make and enter therein
 14 31 an order stating the length of the lines, the actual value
 14 32 of the property, and the exempted value of the property of
 14 33 each of said companies situated in each city, township, or
 14 34 lesser taxing district in its county, as fixed by the director
 14 35  department of revenue. The value certified by the director
 15  1  department of revenue, following application of the percentage
 15  2 of actual value under section 441.21, and following the
 15  3 application of the exemption value certified by the director
 15  4  department of revenue, shall constitute the taxable value
 15  5 of said property for taxing purposes, and the taxes on said
 15  6 property when collected by the county treasurer shall be
 15  7 disposed of as other taxes on real estate. The county auditor
 15  8 shall transmit a copy of said order to the council or trustees
 15  9 of each city or township in which the lines of said company
 15 10 extend.
 15 11    Sec. 29.  Section 434.2, unnumbered paragraph 1, Code 2015,
 15 12 is amended to read as follows:
 15 13    On or before October 31 each year, the director department
 15 14  of revenue shall assess all the property of each railway
 15 15 corporation in the state, excepting the lands, lots, and other
 15 16 real estate belonging thereto not used in the operation of any
 15 17 railway, and excepting railway bridges across the Mississippi
 15 18 and Missouri rivers, and excepting grain elevators; and for
 15 19 the purpose of making such assessment its president, vice
 15 20 president, general manager, general superintendent, receiver,
 15 21 or such other officer as the director department of revenue
 15 22 may designate, shall, on or before the first day of April
 15 23 in each year, furnish the department of revenue a verified
 15 24 statement showing in detail for the year ended December 31 next
 15 25 preceding:
 15 26    Sec. 30.  Section 434.2, subsection 8, Code 2015, is amended
 15 27 to read as follows:
 15 28    8.  Any and all other movable property owned by said railway
 15 29 within the state, classified and scheduled in such manner as
 15 30 may be required by the director department of revenue.
 15 31    Sec. 31.  Section 434.12, Code 2015, is amended to read as
 15 32 follows:
 15 33    434.12  Refusal to obey.
 15 34    If any railway company shall fail or refuse to obey or
 15 35 conform to the rules, regulations, method, and requirements
 16  1 so made or prescribed by the director of revenue under the
 16  2 provisions of sections 434.7 to 434.11 or to make the reports
 16  3 therein provided, the director department of revenue shall
 16  4 proceed to assess the property of such railway company so
 16  5 failing or refusing, according to the best information
 16  6 obtainable, and shall then add to the taxable valuation of such
 16  7 railway company twenty=five percent thereof, which valuation
 16  8 and penalty shall be separately shown, and together shall
 16  9 constitute the assessment for that year.
 16 10    Sec. 32.  Section 434.14, Code 2015, is amended to read as
 16 11 follows:
 16 12    434.14  Amended statement.
 16 13    The director department of revenue may demand, in writing,
 16 14 detailed, explanatory, and amended statements of any of the
 16 15 items mentioned in section 434.2, or any other items deemed by
 16 16 the director department important, to be furnished the director
 16 17  department by such railway corporation within thirty days
 16 18 from such demand, in such form as the director department may
 16 19 designate, which shall be verified as required for the original
 16 20 statement. The returns, both original and amended, shall show
 16 21 such other facts as the director department, in writing, shall
 16 22 require.
 16 23    Sec. 33.  Section 434.15, unnumbered paragraph 1, Code 2015,
 16 24 is amended to read as follows:
 16 25    The said property shall be valued at its actual value, and
 16 26 the assessments shall be made upon the taxable value of the
 16 27 entire railway within the state, except as otherwise provided,
 16 28 and the actual value so ascertained shall be assessed as
 16 29 provided by section 441.21, and shall include the right=of=way,
 16 30 roadbed, bridges, culverts, rolling stock, depots, station
 16 31 grounds, shops, buildings, gravel beds, and all other property,
 16 32 real and personal, exclusively used in the operation of such
 16 33 railway. In assessing said railway and its equipments, the
 16 34 director department of revenue shall take into consideration
 16 35 the gross earnings per mile for the year ending January 1,
 17  1 preceding, and any and all other matters necessary to enable
 17  2 the director department to make a just and equitable assessment
 17  3 of said railway property. If a part of any railway is without
 17  4 this state, then, in estimating the value of its rolling stock
 17  5 and movable property, the director department shall take into
 17  6 consideration the proportion which the business of that part
 17  7 of the railway lying within the state bears to the business of
 17  8 the railway without this state.
 17  9    Sec. 34.  Section 434.16, Code 2015, is amended to read as
 17 10 follows:
 17 11    434.16  Assessment of sleeping and dining cars.
 17 12    The director department of revenue shall, at the time of
 17 13 the assessment of other railway property for taxation, assess
 17 14 for taxation the average number of sleeping and dining cars
 17 15 as provided in section 434.6 so used by such corporation each
 17 16 month and the assessed value of said cars shall bear the same
 17 17 proportion to the entire value thereof that the monthly average
 17 18 number of miles such cars have been run or operated within
 17 19 the state shall bear to the monthly average number of miles
 17 20 such cars have been used or operated within and without the
 17 21 state. Such valuation shall be in the same ratio as that of
 17 22 the property of individuals, and shall be added to the assessed
 17 23 valuation of the corporation, fixed under section 434.15.
 17 24    Sec. 35.  Section 434.17, Code 2015, is amended to read as
 17 25 follows:
 17 26    434.17  Certification to county auditors.
 17 27    On or before October 31 each year, the director department of
 17 28 revenue shall transmit to the county auditor of each county,
 17 29 through and into which any railway may extend, a statement
 17 30 showing the length of the main track within the county, and
 17 31 the assessed value per mile of the same, as fixed by a ratable
 17 32 distribution per mile of the assessed valuation of the whole
 17 33 property.
 17 34    Sec. 36.  Section 434.22, Code 2015, is amended to read as
 17 35 follows:
 18  1    434.22  Levy and collection of tax.
 18  2    At the first meeting of the board of supervisors held after
 18  3 said statement is received by the county auditor, the board
 18  4 shall cause the same to be entered on its minute book, and make
 18  5 and enter in the minute book an order stating the length of
 18  6 the main track and the assessed value of each railway lying in
 18  7 each city, township, or lesser taxing district in its county,
 18  8 through or into which the railway extends, as fixed by the
 18  9 director department of revenue, which shall constitute the
 18 10 taxable value of the property for taxing purposes; and the
 18 11 taxes on the property, when collected by the county treasurer,
 18 12 shall be disposed of as other taxes. The county auditor shall
 18 13 transmit a copy of the order to the council or trustees of the
 18 14 city or township.
 18 15    Sec. 37.  Section 437.2, unnumbered paragraph 1, Code 2015,
 18 16 is amended to read as follows:
 18 17    Every company owning or operating a transmission line or
 18 18 lines for the conduct of electric energy and which line or
 18 19 lines are located within the state, and which said line or
 18 20 lines are also located wholly or partly outside cities, shall,
 18 21 on or before the first day of May in each year, furnish to the
 18 22 director department of revenue a verified statement as to its
 18 23 entire line or lines within this state, when all of said line
 18 24 or lines are located outside cities, and as to such portion
 18 25 of its line or lines within this state as are located outside
 18 26 cities, when such line or lines are located partly outside and
 18 27 partly inside cities, showing:
 18 28    Sec. 38.  Section 437.4, Code 2015, is amended to read as
 18 29 follows:
 18 30    437.4  Additional statement.
 18 31    Upon receipt of the statements from the companies, the
 18 32 director department of revenue shall examine the statements,
 18 33 and if the director department deems them insufficient, and
 18 34 that further information is required, the director department
 18 35  shall require the company making the statements to make
 19  1 other or further statement as the director department deems
 19  2 necessary, notifying the company by mail.
 19  3    Sec. 39.  Section 437.5, Code 2015, is amended to read as
 19  4 follows:
 19  5    437.5  Failure to furnish.
 19  6    In case of the total failure or refusal to make any statement
 19  7 required by sections 437.2 and 437.4 to be made by May 1 in
 19  8 any year, or of failure or refusal to make other or further
 19  9 statement within thirty days from the time the notice is
 19 10 received by the company that the additional statement is
 19 11 required by the director department of revenue, the company
 19 12 shall forfeit and pay to the state, one hundred dollars for
 19 13 each day the total failure or refusal to make any report is
 19 14 continued beyond the first day of May of the year in which it is
 19 15 required, or in case of any other or further report required
 19 16 by the director department for each day it is delayed beyond
 19 17 thirty days from the receipt of the notice by the company that
 19 18 the additional report is required. The forfeiture shall be
 19 19 sued for and recovered in any proper form of action in the name
 19 20 of the state and on relation of the director of revenue of the
 19 21 state, and the penalty, when collected, shall be paid into the
 19 22 general fund of the state.
 19 23    Sec. 40.  Section 437.6, Code 2015, is amended to read as
 19 24 follows:
 19 25    437.6  Actual value.
 19 26    On or before October 31 each year, the director department of
 19 27 revenue shall proceed to find the actual value of that part of
 19 28 such transmission line or lines referred to in section 437.2,
 19 29 owned or operated by any company, that is located within this
 19 30 state but outside cities, including the whole of such line
 19 31 or lines when all of such line or lines owned or operated by
 19 32 said company is located wholly outside of cities, taking into
 19 33 consideration the information obtained from the statements
 19 34 required by this chapter, and any further information
 19 35 obtainable, using the same as a means of determining the
 20  1 actual cash value of such transmission line or lines or part
 20  2 thereof, within this state, located outside of cities. The
 20  3 director department shall then ascertain the value per mile
 20  4 of such transmission line or lines owned or operated by each
 20  5 company specified in section 437.2, by dividing the total value
 20  6 as above ascertained by the number of miles of line of such
 20  7 company within the state located outside of cities, and the
 20  8 result shall be deemed and held to be the actual value per mile
 20  9 of said transmission line or lines of each of said companies
 20 10 within the state located outside of cities.
 20 11    Sec. 41.  Section 437.7, Code 2015, is amended to read as
 20 12 follows:
 20 13    437.7  Taxable value.
 20 14    The taxable value of such line or lines of which the director
 20 15  department of revenue by this chapter is required to find the
 20 16 value, shall be determined by taking the percentage of the
 20 17 actual value so ascertained, as provided by section 441.21,
 20 18 and the ratio between the actual value and the assessed or
 20 19 taxable value of the transmission line or lines of each of said
 20 20 companies located outside of cities shall be the same as in the
 20 21 case of the property of private individuals.
 20 22    Sec. 42.  Section 437.8, Code 2015, is amended to read as
 20 23 follows:
 20 24    437.8  Hearing.
 20 25    At the time of determination of value by the director
 20 26  department of revenue, any company interested shall have the
 20 27 right to appear by its officers, agents, and attorneys before
 20 28 the director department, and be heard on the question of the
 20 29 value of its property for taxation.
 20 30    Sec. 43.  Section 437.9, Code 2015, is amended to read as
 20 31 follows:
 20 32    437.9  County assessment == certification.
 20 33    The director department of revenue shall, for the purpose
 20 34 of determining what amount shall be assessed to any one of
 20 35 said companies in each county of the state into which the
 21  1 line or lines of the company extend, multiply the assessed or
 21  2 taxable value per mile of line of said company, as ascertained
 21  3 according to the provisions of this chapter, by the number of
 21  4 miles of line in each of said counties, and the result thereof
 21  5 shall be by the director department certified to the several
 21  6 county auditors of the respective counties into, over, or
 21  7 through which said line or lines extend.
 21  8    Sec. 44.  Section 437.10, Code 2015, is amended to read as
 21  9 follows:
 21 10    437.10  Entry of certificate.
 21 11    At the first meeting of the board of supervisors held after
 21 12 said statements are received by the county auditor, the board
 21 13 shall cause such statement to be entered in its minute book
 21 14 and make and enter in the minute book an order stating the
 21 15 length of the lines and the assessed value of the property
 21 16 of each of the companies situated in each township or lesser
 21 17 taxing district in each county outside cities, as fixed by the
 21 18 director department of revenue, which shall constitute the
 21 19 taxable value of the property for taxing purposes. The county
 21 20 auditor shall transmit a copy of the order to the trustees of
 21 21 each township and to the proper taxing boards in lesser taxing
 21 22 districts into which the line or lines of the company extend
 21 23 in the county. The taxes on the property when collected by the
 21 24 county treasurer shall be disposed of as other taxes on real
 21 25 estate.
 21 26    Sec. 45.  Section 437.12, Code 2015, is amended to read as
 21 27 follows:
 21 28    437.12  Assessment exclusive.
 21 29    Every transmission line or part of a transmission line,
 21 30 of which the director department of revenue is required by
 21 31 this chapter to find the value, shall be exempt from other
 21 32 assessment or taxation either under sections 428.24 to 428.26,
 21 33 or under any other law of this state except as provided in this
 21 34 chapter.
 21 35    Sec. 46.  Section 438.3, unnumbered paragraph 1, Code 2015,
 22  1 is amended to read as follows:
 22  2    Every pipeline company having lines in the state of Iowa
 22  3 shall annually, on or before the first day of April in each
 22  4 year, make out and deliver to the director department of
 22  5 revenue a statement, verified by the oath of an officer or
 22  6 agent of such pipeline company making such statement, showing
 22  7 in detail for the year ended December 31 next preceding:
 22  8    Sec. 47.  Section 438.4, Code 2015, is amended to read as
 22  9 follows:
 22 10    438.4  Real estate holdings.
 22 11    Every pipeline company required by law to report to the
 22 12 director department of revenue under the provisions of this
 22 13 chapter shall, on or before the first day of April 1932, make
 22 14 to the director department a detailed statement showing the
 22 15 amount of real estate owned or used by it on December 31, 1931,
 22 16 for pipeline purposes, the county in which said real estate
 22 17 is situated, including the rights=of=way, pumping or station
 22 18 grounds, buildings, storage or tank yards, equipment grounds
 22 19 for any and all purposes, with the estimated actual value
 22 20 thereof, in such manner as may be required by the director
 22 21  department.
 22 22    Sec. 48.  Section 438.5, Code 2015, is amended to read as
 22 23 follows:
 22 24    438.5  Statement deemed permanent.
 22 25    Only one such detailed statement by any pipeline company
 22 26 shall be necessary, and when received by the director
 22 27  department of revenue, it shall become the record of the
 22 28 pipeline lands of such company, and be deemed as annually
 22 29 thereafter reported for valuation and assessment by the
 22 30 director department.
 22 31    Sec. 49.  Section 438.6, Code 2015, is amended to read as
 22 32 follows:
 22 33    438.6  Additional corrective statements.
 22 34    On or before the first day of April of each subsequent
 22 35 year, such company shall, in like manner, report all real
 23  1 estate acquired for any of the pipeline purposes above named
 23  2 during the preceding calendar year; and also, a list of any
 23  3 real estate, previously reported, disposed of during the same
 23  4 period, which disposition shall be noted by the director
 23  5  department of revenue in an appropriate column opposite to the
 23  6 description of said tract in the original report of the same
 23  7 in the record of pipeline land.
 23  8    Sec. 50.  Section 438.7, Code 2015, is amended to read as
 23  9 follows:
 23 10    438.7  Consolidated list of real estate.
 23 11    The director department of revenue shall, by some convenient
 23 12 method of binding, arrange the statements required to be made
 23 13 by sections 438.4 to 438.6 so as to form a consolidated list of
 23 14 all real estate reported to the director department as being
 23 15 owned or used for pipeline purposes within the state of Iowa.
 23 16    Sec. 51.  Section 438.8, Code 2015, is amended to read as
 23 17 follows:
 23 18    438.8  Gross earnings.
 23 19    For the purpose of making reports to the director department
 23 20  of revenue, the gross earnings of a pipeline company, owning or
 23 21 operating a line or lines within this state, shall be computed
 23 22 and reported by said company upon such bases as the director
 23 23 may by rule require.
 23 24    Sec. 52.  Section 438.9, Code 2015, is amended to read as
 23 25 follows:
 23 26    438.9  Accounts == regulation.
 23 27    The director of revenue may prescribe such rules with
 23 28 respect to the keeping of accounts by the pipeline companies
 23 29 doing business or having property in this state as will insure
 23 30 the accurate division of the accounts and the information to be
 23 31 reported, and uniformity in reporting the same to the director
 23 32  department.
 23 33    Sec. 53.  Section 438.11, Code 2015, is amended to read as
 23 34 follows:
 23 35    438.11  Refusal to comply == penalty.
 24  1 If any pipeline company shall fail or refuse to obey and
 24  2 conform to the rules, method and requirements so made and
 24  3 prescribed by the director of revenue under the provisions
 24  4 of this chapter, or to make the reports herein provided, the
 24  5 director department shall proceed to assess the property of
 24  6 such pipeline company so failing or refusing, according to
 24  7 the best information obtainable, and shall then add to the
 24  8 director's department's valuation of such pipeline company
 24  9 twenty=five percent thereof, which valuation and penalty
 24 10 shall be separately shown, and together shall constitute the
 24 11 assessment for that year.
 24 12    Sec. 54.  Section 438.12, Code 2015, is amended to read as
 24 13 follows:
 24 14    438.12  Amended and explanatory statements.
 24 15    The director department of revenue may demand, in writing,
 24 16 detailed, explanatory and amended statements of any of the
 24 17 items mentioned in section 438.3, or any other item deemed
 24 18 to be important, to be furnished to the director department
 24 19  by such pipeline company within thirty days from such demand
 24 20 in such form as the director department may designate, which
 24 21 shall be verified as required for the original statement. The
 24 22 returns, both original and amended, shall show such other facts
 24 23 as the director department, in writing, shall require.
 24 24    Sec. 55.  Section 438.13, Code 2015, is amended to read as
 24 25 follows:
 24 26    438.13  Basis of valuation and assessment.
 24 27    The said property shall be valued at its actual value,
 24 28 and the assessments shall be made upon the taxable value
 24 29 of the entire pipeline property within the state, except
 24 30 as otherwise provided, and the actual and taxable value so
 24 31 ascertained shall be assessed as provided by section 441.21;
 24 32 and shall include the rights=of=way, easements, the pipelines,
 24 33 stations, grounds, shops, buildings, pumps and all other
 24 34 property, real and personal exclusively used in the operation
 24 35 of such pipeline. In assessing said pipeline company and its
 25  1 equipment, the director department of revenue shall take into
 25  2 consideration the gross earnings and the net earnings for the
 25  3 entire property, and per mile, for the year ending December 31
 25  4 preceding, and any and all other matters necessary to enable
 25  5 the director department to make a just and equitable assessment
 25  6 of said pipeline property.
 25  7    Sec. 56.  Section 438.14, Code 2015, is amended to read as
 25  8 follows:
 25  9    438.14  Valuation and certification.
 25 10    The director department of revenue shall on or before
 25 11 October 31 each year determine the value of pipeline property
 25 12 located in each taxing district of the state, and in fixing the
 25 13 value shall take into consideration the structures, equipment,
 25 14 pumping stations, etc., located in the taxing district, and
 25 15 shall transmit to the county auditor of each such county
 25 16 through and into which any pipeline may extend, a statement
 25 17 showing the assessed value of the property in each of the
 25 18 taxing districts of the county. The property shall then be
 25 19 taxed in the county and lesser taxing districts, based upon
 25 20 the valuation so certified, in the same manner as in other
 25 21 property.
 25 22    Sec. 57.  Section 438.15, Code 2015, is amended to read as
 25 23 follows:
 25 24    438.15  Assessed value in each taxing district == record.
 25 25    At the first meeting of the board of supervisors held after
 25 26 said statement is received by the county auditor, the board
 25 27 shall cause the same to be entered on its minute book, and
 25 28 make and enter in the minute book an order describing and
 25 29 stating the assessed value of each pipeline lying in each city,
 25 30 township, or lesser taxing district in its county, through
 25 31 or into which the pipeline extends, as fixed by the director
 25 32  department of revenue, which shall constitute the assessed
 25 33 value of the property for taxing purposes; and the taxes on
 25 34 the property, when collected by the county treasurer, shall be
 25 35 disposed of as other taxes. The county auditor shall transmit
 26  1 a copy of the order to the council of the city, or the trustees
 26  2 of the township, as the case may be.
 26  3    Sec. 58.  Section 441.17, subsection 9, Code 2015, is amended
 26  4 to read as follows:
 26  5    9.  Furnish to the director department of revenue any
 26  6 information which the assessor may have relative to the
 26  7 ownership of any property that may be assessable within this
 26  8 state, but not assessable or subject to being listed for
 26  9 taxation by the assessor.
 26 10    Sec. 59.  Section 441.21, subsection 1, paragraph i,
 26 11 subparagraphs (2), (4), and (5), Code 2015, are amended to read
 26 12 as follows:
 26 13    (2)  The conference board shall respond to the department
 26 14 within thirty days of receipt of the notice of noncompliance.
 26 15 The conference board may respond to the notice by asserting
 26 16 that the assessor is in compliance with the rules, guidelines,
 26 17 and forms of the department or by informing the department that
 26 18 the conference board intends to submit a plan of action to
 26 19 achieve compliance. If the conference board responds to the
 26 20 notification by asserting that the assessor is in compliance, a
 26 21 hearing before the director of revenue shall be scheduled on
 26 22 the matter.  Judicial review of the decision of the director
 26 23 of revenue may be sought by the conference board in accordance
 26 24 with chapter 17A. 
 26 25    (4)  By January 1 of the assessment year following
 26 26 the calendar year in which the plan was submitted to the
 26 27 department, the conference board shall submit a report to the
 26 28 department indicating that the plan of action was followed and
 26 29 compliance has been achieved. The department may conduct a
 26 30 field inspection to ensure that the assessor is in compliance.
 26 31 By January 31, the department shall notify the assessor and the
 26 32 conference board, by restricted certified mail, either that
 26 33 compliance has been achieved or that the assessor remains in
 26 34 noncompliance. If the department determines that the assessor
 26 35 remains in noncompliance, the department shall take steps
 27  1 to withhold up to five percent of the reimbursement payment
 27  2 authorized in section 425.1 until the director department of
 27  3 revenue determines that the assessor is in compliance.
 27  4    (5)  If the conference board disputes the determination
 27  5 of the department, the chairperson of the conference board
 27  6 may appeal the determination to the state board of tax
 27  7 review director of revenue within thirty days from the date
 27  8 of the notice that the assessor remains in noncompliance.
 27  9 The director of revenue shall grant a hearing, and upon
 27 10 hearing shall determine the correctness of the department's
 27 11 determination of noncompliance.  The director of revenue shall
 27 12 notify the conference board of the decision by mail.  Judicial
 27 13 review of the decision of the director of revenue may be sought
 27 14 by the chairperson of the conference board in accordance with
 27 15 chapter 17A.
 27 16    Sec. 60.  Section 441.21, subsection 4, Code 2015, is amended
 27 17 to read as follows:
 27 18    4.  For valuations established as of January 1, 1979,
 27 19 the percentage of actual value at which agricultural and
 27 20 residential property shall be assessed shall be the quotient
 27 21 of the dividend and divisor as defined in this section. The
 27 22 dividend for each class of property shall be the dividend
 27 23 as determined for each class of property for valuations
 27 24 established as of January 1, 1978, adjusted by the product
 27 25 obtained by multiplying the percentage determined for that
 27 26 year by the amount of any additions or deletions to actual
 27 27 value, excluding those resulting from the revaluation of
 27 28 existing properties, as reported by the assessors on the
 27 29 abstracts of assessment for 1978, plus six percent of the
 27 30 amount so determined. However, if the difference between the
 27 31 dividend so determined for either class of property and the
 27 32 dividend for that class of property for valuations established
 27 33 as of January 1, 1978, adjusted by the product obtained by
 27 34 multiplying the percentage determined for that year by the
 27 35 amount of any additions or deletions to actual value, excluding
 28  1 those resulting from the revaluation of existing properties,
 28  2 as reported by the assessors on the abstracts of assessment
 28  3 for 1978, is less than six percent, the 1979 dividend for the
 28  4 other class of property shall be the dividend as determined for
 28  5 that class of property for valuations established as of January
 28  6 1, 1978, adjusted by the product obtained by multiplying
 28  7 the percentage determined for that year by the amount of
 28  8 any additions or deletions to actual value, excluding those
 28  9 resulting from the revaluation of existing properties, as
 28 10 reported by the assessors on the abstracts of assessment for
 28 11 1978, plus a percentage of the amount so determined which is
 28 12 equal to the percentage by which the dividend as determined
 28 13 for the other class of property for valuations established
 28 14 as of January 1, 1978, adjusted by the product obtained by
 28 15 multiplying the percentage determined for that year by the
 28 16 amount of any additions or deletions to actual value, excluding
 28 17 those resulting from the revaluation of existing properties,
 28 18 as reported by the assessors on the abstracts of assessment
 28 19 for 1978, is increased in arriving at the 1979 dividend for
 28 20 the other class of property. The divisor for each class of
 28 21 property shall be the total actual value of all such property
 28 22 in the state in the preceding year, as reported by the
 28 23 assessors on the abstracts of assessment submitted for 1978,
 28 24 plus the amount of value added to said total actual value by
 28 25 the revaluation of existing properties in 1979 as equalized
 28 26 by the director of revenue pursuant to section 441.49. The
 28 27 director shall utilize information reported on abstracts of
 28 28 assessment submitted pursuant to section 441.45 in determining
 28 29 such percentage. For valuations established as of January 1,
 28 30 1980, and each assessment year thereafter beginning before
 28 31 January 1, 2013, the percentage of actual value as equalized
 28 32 by the director of revenue as provided in section 441.49 at
 28 33 which agricultural and residential property shall be assessed
 28 34 shall be calculated in accordance with the methods provided
 28 35 in this subsection, including the limitation of increases in
 29  1 agricultural and residential assessed values to the percentage
 29  2 increase of the other class of property if the other class
 29  3 increases less than the allowable limit adjusted to include
 29  4 the applicable and current values as equalized by the director
 29  5 of revenue, except that any references to six percent in this
 29  6 subsection shall be four percent. For valuations established
 29  7 as of January 1, 2013, and each assessment year thereafter,
 29  8 the percentage of actual value as equalized by the director
 29  9  department of revenue as provided in section 441.49 at which
 29 10 agricultural and residential property shall be assessed shall
 29 11 be calculated in accordance with the methods provided in
 29 12 this subsection, including the limitation of increases in
 29 13 agricultural and residential assessed values to the percentage
 29 14 increase of the other class of property if the other class
 29 15 increases less than the allowable limit adjusted to include
 29 16 the applicable and current values as equalized by the director
 29 17  department of revenue, except that any references to six
 29 18 percent in this subsection shall be three percent.
 29 19    Sec. 61.  Section 441.21, subsection 5, paragraphs b and c,
 29 20 Code 2015, are amended to read as follows:
 29 21    b.  For valuations established on or after January 1, 2013,
 29 22 commercial property, excluding properties referred to in
 29 23 section 427A.1, subsection 8, shall be assessed at a percentage
 29 24 of its actual value, as determined in this paragraph "b".
 29 25 For valuations established for the assessment year beginning
 29 26 January 1, 2013, the percentage of actual value as equalized
 29 27 by the director department of revenue as provided in section
 29 28 441.49 at which commercial property shall be assessed shall
 29 29 be ninety=five percent. For valuations established for the
 29 30 assessment year beginning January 1, 2014, and each assessment
 29 31 year thereafter, the percentage of actual value as equalized
 29 32 by the director department of revenue as provided in section
 29 33 441.49 at which commercial property shall be assessed shall be
 29 34 ninety percent.
 29 35    c.  For valuations established on or after January 1, 2013,
 30  1 industrial property, excluding properties referred to in
 30  2 section 427A.1, subsection 8, shall be assessed at a percentage
 30  3 of its actual value, as determined in this paragraph "c".
 30  4 For valuations established for the assessment year beginning
 30  5 January 1, 2013, the percentage of actual value as equalized
 30  6 by the director department of revenue as provided in section
 30  7 441.49 at which industrial property shall be assessed shall
 30  8 be ninety=five percent. For valuations established for the
 30  9 assessment year beginning January 1, 2014, and each assessment
 30 10 year thereafter, the percentage of actual value as equalized
 30 11 by the director department of revenue as provided in section
 30 12 441.49 at which industrial property shall be assessed shall be
 30 13 ninety percent.
 30 14    Sec. 62.  Section 441.21, subsection 10, Code 2015, is
 30 15 amended to read as follows:
 30 16    10.  The percentage of actual value computed by the
 30 17 director department of revenue for agricultural property,
 30 18 residential property, commercial property, industrial property,
 30 19 multiresidential property, property valued by the department
 30 20 of revenue pursuant to chapter 434, and property valued by the
 30 21 department of revenue pursuant to chapters 428, 433, 437, and
 30 22 438 and used to determine assessed values of those classes
 30 23 of property does not constitute a rule as defined in section
 30 24 17A.2, subsection 11.
 30 25    Sec. 63.  Section 441.21, subsection 13, paragraph b, Code
 30 26 2015, is amended to read as follows:
 30 27    b.  For valuations established for the assessment year
 30 28 beginning January 1, 2015, the percentage of actual value
 30 29 as equalized by the director department of revenue as
 30 30 provided in section 441.49 at which multiresidential property
 30 31 shall be assessed shall be the greater of eighty=six and
 30 32 twenty=five hundredths percent or the percentage of actual
 30 33 value determined by the director department of revenue at which
 30 34 property assessed as residential property is assessed for
 30 35 the same assessment year under subsection 4. For valuations
 31  1 established for the assessment year beginning January 1,
 31  2 2016, the percentage of actual value as equalized by the
 31  3 director department of revenue as provided in section 441.49
 31  4 at which multiresidential property shall be assessed shall
 31  5 be the greater of eighty=two and five=tenths percent or
 31  6 the percentage of actual value determined by the director
 31  7  department of revenue at which property assessed as residential
 31  8 property is assessed for the same assessment year under
 31  9 subsection 4. For valuations established for the assessment
 31 10 year beginning January 1, 2017, the percentage of actual
 31 11 value as equalized by the director department of revenue as
 31 12 provided in section 441.49 at which multiresidential property
 31 13 shall be assessed shall be the greater of seventy=eight and
 31 14 seventy=five hundredths percent or the percentage of actual
 31 15 value determined by the director department of revenue at which
 31 16 property assessed as residential property is assessed for
 31 17 the same assessment year under subsection 4. For valuations
 31 18 established for the assessment year beginning January 1, 2018,
 31 19 the percentage of actual value as equalized by the director
 31 20  department of revenue as provided in section 441.49 at which
 31 21 multiresidential property shall be assessed shall be the
 31 22 greater of seventy=five percent or the percentage of actual
 31 23 value determined by the director department of revenue at which
 31 24 property assessed as residential property is assessed for
 31 25 the same assessment year under subsection 4. For valuations
 31 26 established for the assessment year beginning January 1, 2019,
 31 27 the percentage of actual value as equalized by the director
 31 28  department of revenue as provided in section 441.49 at which
 31 29 multiresidential property shall be assessed shall be the
 31 30 greater of seventy=one and twenty=five hundredths percent or
 31 31 the percentage of actual value determined by the director
 31 32  department of revenue at which property assessed as residential
 31 33 property is assessed for the same assessment year under
 31 34 subsection 4. For valuations established for the assessment
 31 35 year beginning January 1, 2020, the percentage of actual value
 32  1 as equalized by the director department of revenue as provided
 32  2 in section 441.49 at which multiresidential property shall be
 32  3 assessed shall be the greater of sixty=seven and five=tenths
 32  4 percent or the percentage of actual value determined by the
 32  5 director department of revenue at which property assessed
 32  6 as residential property is assessed for the same assessment
 32  7 year under subsection 4. For valuations established for the
 32  8 assessment year beginning January 1, 2021, the percentage
 32  9 of actual value as equalized by the director department of
 32 10 revenue as provided in section 441.49 at which multiresidential
 32 11 property shall be assessed shall be the greater of sixty=three
 32 12 and seventy=five hundredths percent or the percentage of actual
 32 13 value determined by the director department of revenue at which
 32 14 property assessed as residential property is assessed for
 32 15 the same assessment year under subsection 4. For valuations
 32 16 established for the assessment year beginning January 1, 2022,
 32 17 and each assessment year thereafter, the percentage of actual
 32 18 value as equalized by the director department of revenue as
 32 19 provided in section 441.49 at which multiresidential property
 32 20 shall be assessed shall be equal to the percentage of actual
 32 21 value determined by the director department of revenue at which
 32 22 property assessed as residential property is assessed under
 32 23 subsection 4 for the same assessment year.
 32 24    Sec. 64.  Section 441.24, subsection 1, Code 2015, is amended
 32 25 to read as follows:
 32 26    1.  If a person refuses to furnish the verified statements
 32 27 required in connection with the assessment of property by the
 32 28 assessor, or to list the corporation's or person's property,
 32 29 the director department of revenue, or assessor, as the case
 32 30 may be, shall proceed to list and assess the property according
 32 31 to the best information obtainable, and shall add to the
 32 32 taxable valuation one hundred percent thereof, which valuation
 32 33 and penalty shall be separately shown, and shall constitute the
 32 34 assessment; and if the valuation of the property is changed by
 32 35 a board of review, or on appeal from a board of review, a like
 33  1 penalty shall be added to the valuation thus fixed.
 33  2    Sec. 65.  Section 441.26, subsections 2 and 3, Code 2015, are
 33  3 amended to read as follows:
 33  4    2.  The notice in 1981 and each odd=numbered year thereafter
 33  5 shall contain a statement that the assessments are subject
 33  6 to equalization pursuant to an order issued by the director
 33  7  department of revenue, that the county auditor shall give
 33  8 notice on or before October 15 by publication in an official
 33  9 newspaper of general circulation to any class of property
 33 10 affected by the equalization order, and that the board of
 33 11 review shall be in session from October 15 to November 15 to
 33 12 hear protests of affected property owners or taxpayers whose
 33 13 valuations have been adjusted by the equalization order.
 33 14    3.  The assessment rolls shall be used in listing the
 33 15 property and showing the values affixed to the property of all
 33 16 persons assessed. The rolls shall be made in duplicate. The
 33 17 duplicate roll shall be signed by the assessor, detached from
 33 18 the original and delivered to the person assessed if there has
 33 19 been an increase or decrease in the valuation of the property.
 33 20 If there has been no change in the valuation, the information
 33 21 on the roll may be printed on computer stock paper and
 33 22 preserved as required by this chapter. If the person assessed
 33 23 requests in writing a copy of the roll, the copy shall be
 33 24 provided to the person. The pages of the assessor's assessment
 33 25 book shall contain columns ruled and headed for the information
 33 26 required by this chapter and that which the director department
 33 27  of revenue deems essential in the equalization work of the
 33 28 director department. The assessor shall return all assessment
 33 29 rolls and schedules to the county auditor, along with the
 33 30 completed assessment book, as provided in this chapter, and the
 33 31 county auditor shall carefully keep and preserve the rolls,
 33 32 schedules, and book for a period of five years from the time of
 33 33 its filing in the county auditor's office.
 33 34    Sec. 66.  Section 441.47, unnumbered paragraph 1, Code 2015,
 33 35 is amended to read as follows:
 34  1 The director department of revenue on or about August
 34  2 15, 1977, and every two years thereafter shall order the
 34  3 equalization of the levels of assessment of each class of
 34  4 property in the several assessing jurisdictions by adding to
 34  5 or deducting from the valuation of each class of property such
 34  6 percentage in each case as may be necessary to bring the same
 34  7 to its taxable value as fixed in this chapter and chapters
 34  8 427 to 443. The director department shall adjust to actual
 34  9 value the valuation of any class of property as set out in
 34 10 the abstract of assessment when the valuation is at least
 34 11 five percent above or below actual value as determined by the
 34 12 director department. For purposes of such value adjustments
 34 13 and before such equalization the director shall adopt, in
 34 14 the manner prescribed by chapter 17A, such rules as may be
 34 15 necessary to determine the level of assessment for each class
 34 16 of property in each county. The rules shall cover:
 34 17    Sec. 67.  Section 441.47, subsection 3, Code 2015, is amended
 34 18 to read as follows:
 34 19    3.  The proposed use of other methods that would assist
 34 20 the director department in arriving at the accurate level
 34 21 of assessment of each class of property in each assessing
 34 22 jurisdiction.
 34 23    Sec. 68.  Section 441.48, Code 2015, is amended to read as
 34 24 follows:
 34 25    441.48  Notice of adjustment.
 34 26    Before the director department of revenue shall adjust the
 34 27 valuation of any class of property any such percentage, the
 34 28 director department shall serve ten days' notice by mail, on
 34 29 the county auditor of the county whose valuation is proposed
 34 30 to be adjusted and the director department shall hold an
 34 31 adjourned meeting after such ten days' notice, at which time
 34 32 the county or assessing jurisdiction may appear by its city
 34 33 council or board of supervisors, city or county attorney, and
 34 34 other assessing jurisdiction, city or county officials, and
 34 35 make written or oral protest against such proposed adjustment,
 35  1 which protest shall consist simply of a statement of the error,
 35  2 or errors, complained of with such facts as may lead to their
 35  3 correction, and at such adjourned meeting final action may be
 35  4 taken in reference thereto.
 35  5    Sec. 69.  Section 441.49, subsections 1, 4, 5, and 6, Code
 35  6 2015, are amended to read as follows:
 35  7    1.  a.  The director department shall keep a record of the
 35  8 review and adjustment proceedings and finish the proceedings
 35  9 on or before October 1 unless for good cause the proceedings
 35 10 cannot be completed by that date. The director department
 35 11  shall notify each county auditor by mail of the final action
 35 12 taken at the proceedings and specify any adjustments in the
 35 13 valuations of any class of property to be made effective for
 35 14 the jurisdiction.
 35 15    b.  However, an assessing jurisdiction may request the
 35 16 director department to permit the use of an alternative method
 35 17 of applying the equalization order to the property values in
 35 18 the assessing jurisdiction, provided that the final valuation
 35 19 shall be equivalent to the director's department's equalization
 35 20 order. The assessing jurisdiction shall notify the county
 35 21 auditor of the request for the use of an alternative method of
 35 22 applying the equalization order and the director's department's
 35 23  disposition of the request. The request to use an alternative
 35 24 method of applying the equalization order, including procedures
 35 25 for notifying affected property owners and appealing valuation
 35 26 adjustments, shall be made within ten days from the date
 35 27 the county auditor receives the equalization order and
 35 28 the valuation adjustments, and appeal procedures shall be
 35 29 completed by November 30 of the year of the equalization order.
 35 30 Compliance with the provisions of section 441.21 is sufficient
 35 31 grounds for the director department to permit the use of an
 35 32 alternative method of applying the equalization order.
 35 33    4.  The local board of review shall reconvene in special
 35 34 session from October 15 to November 15 for the purpose of
 35 35 hearing the protests of affected property owners or taxpayers
 36  1 within the jurisdiction of the board whose valuation of
 36  2 property if adjusted pursuant to the equalization order issued
 36  3 by the director department of revenue will result in a greater
 36  4 value than permitted under section 441.21. The board of review
 36  5 shall accept protests only during the first ten days following
 36  6 the date the local board of review reconvenes. The board
 36  7 of review shall limit its review to only the timely filed
 36  8 protests. The board of review may adjust all or a part of
 36  9 the percentage increase ordered by the director department of
 36 10 revenue by adjusting the actual value of the property under
 36 11 protest to one hundred percent of actual value. Any adjustment
 36 12 so determined by the board of review shall not exceed the
 36 13 percentage increase provided for in the director's department's
 36 14  equalization order. The determination of the board of review
 36 15 on filed protests is final, subject to appeal to the property
 36 16 assessment appeal board. A final decision by the local board
 36 17 of review, or the property assessment appeal board, if the
 36 18 local board's decision is appealed, is subject to review by the
 36 19 director of revenue for the purpose of determining whether the
 36 20 board's actions substantially altered the equalization order.
 36 21 In making the review, the director has all the powers provided
 36 22 in chapter 421, and in exercising the powers the director
 36 23 is not subject to chapter 17A.  Not later than fifteen days
 36 24 following the adjournment of the board, the board of review
 36 25 shall submit to the director of revenue, on forms prescribed
 36 26 by the director, a report of all actions taken by the board of
 36 27 review during this session.
 36 28    5.  Not later than ten days after the date the final
 36 29 equalization order is issued, the city or county officials
 36 30 of the affected county or assessing jurisdiction may appeal
 36 31 the final equalization order to the state board of tax
 36 32 review director of revenue. The appeal shall not delay the
 36 33 implementation of the equalization orders.  The director shall
 36 34 grant a hearing, and upon hearing the director shall determine
 36 35 the correctness of the final equalization order, and notify
 37  1 city or county officials of the affected county or assessing
 37  2 jurisdiction of the decision by mail.  Judicial review of the
 37  3 decision of the director of revenue may be sought by the city
 37  4 or county officials in accordance with chapter 17A.
 37  5    6.  Tentative and final equalization orders issued by the
 37  6 director department of revenue are not rules as defined in
 37  7 section 17A.2, subsection 7.
 37  8    Sec. 70.  EFFECTIVE DATES.
 37  9    1.  Except as provided in subsection 2, this division of this
 37 10 Act, being deemed of immediate importance, takes effect upon
 37 11 enactment.
 37 12    2.  The following provisions of this division of this Act
 37 13 take effect July 1, 2016:
 37 14    a.  The section of this Act amending section 68B.35.
 37 15    b.  The section of this Act amending section 421.60.
 37 16                           EXPLANATION
 37 17 The inclusion of this explanation does not constitute agreement with
 37 18 the explanation's substance by the members of the general assembly.
 37 19    This bill provides for the future repeal of the state board
 37 20 of tax review, appeals to the director of revenue (director)
 37 21 for certain tax matters, and modifies the powers and duties of
 37 22 the director.
 37 23    DIVISION I == FUTURE REPEAL OF STATE BOARD OF TAX REVIEW
 37 24 == TRANSITION.  Division I provides for the future repeal of
 37 25 the state board of tax review.  The state board of tax review
 37 26 (board) is an independent, bipartisan board consisting of
 37 27 three members appointed by the governor and confirmed by the
 37 28 senate.  One of the powers and duties of the board is to review
 37 29 final decisions of the director, including but not limited
 37 30 to final decisions issued by the director in a contested
 37 31 case proceeding.  The board also has original jurisdiction
 37 32 to review the director's assessments of centrally assessed
 37 33 property, which means the taxpayer appeals the assessment of
 37 34 the director directly to the board.  An appeal must be made to
 37 35 the board within 30 days of a director's decision in order to
 38  1 be considered timely. Both the taxpayer and the director have
 38  2 the right to appeal a decision of the board to district court.
 38  3    The division prohibits the board from accepting cases for
 38  4 review, and prohibits a taxpayer from filing an appeal with the
 38  5 board, on or after the effective date of the division.  The
 38  6 board is repealed and dissolved on the date that it disposes of
 38  7 all pending cases or on July 1, 2016, whichever occurs earlier.
 38  8 The division takes effect immediately upon enactment.
 38  9    DIVISION II == CORRESPONDING CHANGES.  Division II makes
 38 10 corresponding changes to Code sections that reference the board
 38 11 and provides for appeals to the director for certain actions
 38 12 that are appealed directly to the board under current law.
 38 13    The division removes members of the board from the
 38 14 requirement to file certain financial statements with the
 38 15 ethics and campaign disclosure board. The division also
 38 16 strikes references to the board from the ability of a
 38 17 prevailing taxpayer to be awarded litigation costs in certain
 38 18 proceedings.  These provisions take effect July 1, 2016.
 38 19    The division amends the procedures for appealing the
 38 20 director's disallowance, recalculation, or denial of a
 38 21 homestead property tax credit, property tax credit or rent
 38 22 reimbursement for elderly and disabled, military service
 38 23 property tax exemption, or business property tax credit.
 38 24 Current law provides that these decisions are made by the
 38 25 director and may be appealed to the board.  The division
 38 26 provides that these decisions will be made by the department
 38 27 of revenue (department) and may be appealed to the director
 38 28 within 30 days of the notice of disallowance, recalculation,
 38 29 or denial.  If such an appeal is made, the director is
 38 30 required to grant a hearing and determine the correctness of
 38 31 the disallowance, recalculation, or denial. The director's
 38 32 decisions are subject to judicial review.
 38 33    The division amends procedures and rules for appealing the
 38 34 director's assessment of telegraph and telephone companies
 38 35 (Code chapter 433), railway companies (Code chapter 434),
 39  1 electric transmission line companies (Code chapter 437),
 39  2 pipeline companies (Code chapter 438), and certain other
 39  3 property assessed by the director (Code chapter 428).
 39  4 Current law provides that these tax assessments are made by
 39  5 the director and shall be appealed directly to the board,
 39  6 and provides for certain additional rules that apply to
 39  7 proceedings before the board.  The division provides that
 39  8 these tax assessments will be made by the department and shall
 39  9 be appealed to the director and provides that the existing
 39 10 additional rules shall apply to appeal proceedings before the
 39 11 director. The director's decisions are subject to judicial
 39 12 review.
 39 13    The division specifies that a city or county conference
 39 14 board may seek judicial review of the decision of the director
 39 15 following a hearing to determine a city or county assessor's
 39 16 noncompliance with the rules for valuation of property.
 39 17 The division also amends the procedures for appealing a
 39 18 determination by the department of revenue that an assessor
 39 19 remains in noncompliance following a plan of action by a
 39 20 conference board to achieve compliance.  Current law provides
 39 21 that such a determination may be appealed to the board.  The
 39 22 division provides that the decision may be appealed to the
 39 23 director within 30 days of the notice of noncompliance.  The
 39 24 director is required to grant a hearing and determine the
 39 25 correctness of the noncompliance determination.  Judicial
 39 26 review may be sought by the chairperson of the conference
 39 27 board.
 39 28    The division amends the procedures for equalizing property
 39 29 and appealing a final equalization order of the director.
 39 30 Current law provides that the equalization of property and the
 39 31 issuance of equalization orders are done by the director and
 39 32 that such orders may be appealed to the board.  The division
 39 33 provides that the equalization of property will be done by the
 39 34 department and that the equalization orders will be issued
 39 35 by the department and may be appealed to the director.  The
 40  1 director is required to grant a hearing and determine the
 40  2 correctness of the final equalization order.  Judicial review
 40  3 of the director's decision may be sought by the city or county
 40  4 officials.
 40  5    The division also amends the duties and powers of the
 40  6 director with regard to the appeal of a final equalization
 40  7 order.  Current law provides that certain rules relating to
 40  8 contested case proceedings in Code chapter 17A (administrative
 40  9 procedures Act) do not apply to matters involving the
 40 10 equalization of property, except in a hearing before the board.
 40 11 The division provides that the contested case proceeding rules
 40 12 will apply in a hearing before the director from an appeal of a
 40 13 final equalization order, and provides for the future repeal on
 40 14 July 1, 2016, of the reference to the board's exemption from
 40 15 those rules.
 40 16    Except as otherwise provided in the division, the division
 40 17 takes effect immediately upon enactment.
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