SB1518 - 451R - House Bill Summary

House of Representatives

SB 1518

property tax; corrections and conformity

Sponsors: Senator bundgaard

X	Committee on Ways and Means
	Caucus and COW
	As Passed the House

SB 1518 provides for various changes to update the property tax statutes.

History

The Legislature has made numerous changes to the property valuation and appeals over the past several years. In 1994, as part of a bill revamping the property valuation and appeals system, the Legislature created a Joint Legislative Oversight Committee on Administrative Property Tax Appeals. This committee meets periodically throughout the year to review the property tax statutes and make recommendations to the Legislature to improve the system, along with any technical changes. This Committee is made up of legislators, assessors, public members and a designee from DOR. The Committee is scheduled to expire at the end of 2001. This bill will reestablish this committee, with a slightly different membership. Their present duties to review the administrative structure and identify areas of ambiguity and problems will remain the same under the new committee.

SB 1518 is a result of the recommendations of the current Committee, which along with other organizations, have reviewed the property tax and valuation statutes. The changes will correct erroneous, obsolete and conflicting language and update the property tax statutes.

Provisions

· Establishes a Joint Legislative Oversight Committee on Property Tax Assessment and Appeals. This is a continuation of the current Committee which was established through session law in Laws 1994, chapter 323. The Committee consists of six legislators, two county assessors, two county treasurers, four public members and the director of DOR or their designee. (The current Committee has four county assessors and no county treasurers.) The Committee will meet periodically throughout the year and make recommendations to the Legislature regarding the administration structure for appeals and identify any other problem areas. Committee members are not eligible to receive compensation and the Legislature is required to provide accommodations and staff support. The Committee will expire at the end of 2007.

· Changes the date the county assessors transmit and certifies the total net primary values used to calculate levy limits to the various districts. The information will also be sent to the Property Tax Oversight Commission. The date is changed from “on or before July 1” to February 10. This date conforms to the date required for valuation information used to calculate the state truth-in-taxation rates for state education purposes.

· Changes the term “agricultural land” to “agricultural real property”.

· Clarifies that it is the county assessor who can abate penalties for good cause, not DOR.

· Clarifies that if a property is split, subdivided or consolidated between September 30 through December 31 of the valuation year, the total limited property value of the new properties is the same as the limited value of the original parcel(s). For the following valuation year of the property that is split, subdivided or consolidated the value must be comparable to other properties that are similar in use and classification.

· Clarifies that non-producing mines are valued for three valuation years after the last year in which the property was a producing mine.

· Makes changes to reflect the current practice regarding the assessment and appeals calendar in use for centrally assessed properties and truth-in-taxation statutes.

· Clarifies the definition of “property change factor” for centrally valued properties.

· Requires DOR to transmit centrally valued property information directly to the county assessors instead of going through the county boards of supervisors. Also requires the State Board of Equalization to transmit any changes in value resulting from appeals directly to the county assessor instead of through the county board of supervisors.

· Repeals the requirement for the county board of supervisors to have a hearing for the final adoption of the tax roll by December 20. Instead, the county assessors will complete the assessment roll as currently required and changes the date they certify the roll from December 1 to December 20. The clerk of the Board of Supervisors is currently required to make available an abstract of the tax roll within 30 days of the adoption of the tax roll by the Board of Supervisors. Instead the clerk will provide the abstract by January 20 of each year.

· Decisions of the county board of equalization regarding valuation appeals must be mailed to the county assessor in addition to the petitioner.

· Changes the term “tax year” to “valuation year” for appeal purposes.

· Repeals the requirement for the assessor to separately state the value of land and buildings (improvements) for rented residential properties on assessment notices. Instead, the assessor will value land and improvements together, the same way they do for owner-occupied residential property.

· Removes a provision requiring persons to report unsecured personal property to the assessor. (This section is obsolete with the combining of the secured and unsecured personal property rolls.)

· Allows the State Board of Equalization to pay its members “up to” $150 per day. Currently they receive $150 per day regardless of how many hours they work each day.

· Changes the date that the Property Tax Oversight Commission notifies a political subdivision of any violations in levy limit calculations from September 15 to the third Monday in May. Also changes the date a political subdivision responds to the Commission’s findings from October 1 to July 1. Additionally, final changes to any levy limit calculations are changed from September 15 to the first Monday in August.

· Allows more time for political subdivisions to respond to the initial levy limit calculations determined by the assessor. Current law requires a response in three days; the bill will allow ten days.

· Eliminates a requirement for county treasurers to include in a tax lien sale the taxes, penalties and interest charges assessed against the current owner. However, any taxes, penalties and interest charges that are assessed against the property is still required as part of the notice.

· Changes the article headings for several articles relating to personal property tax as a result of the combining of the secured and unsecured property tax roll.

· Makes numerous technical and conforming changes.

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· 45th Legislature