4th QTR. 2008
VOLUME 1
ISSUE 1
3rd Quarter Issue 2009
The Property Tax Division of the Iowa Department of Revenue
is unique in its close working relationship with local government in administering property tax. The mission of the Property Tax Division is to assist local government in
making property tax assessments fair and in compliance with the law. Our goal in publishing this newsletter is to provide an overview of the current issues and events. We welcome comments and questions and encourage you to contact us.
EDUCATION & ASSESSOR APPOINTMENTS
Appointments Iowa assessors are appointed for 6-year terms by a conference board consisting of three units. County Assessors (99) • County board of supervisors • One member of the school board of each school district in county • Mayor of each town or city in county The terms of all 99 county assessors end December 31, 2009. Ninety-three assessor reappointment letters have been received for the 2010-2015 term. City Assessors (8) • County board of supervisors • School board • City council The terms for city assessors vary depending on when the position was created. Vacancies Currently there are two vacant assessor positions – Warren County and Wright County.
Assessor Education Incumbent assessors and deputy assessors must meet continuing education requirements during their 6-year term to qualify for reappointment. Assessors are required to complete 150 hours of approved continuing education of which 90 hours must be for tested credit. Deputies are required to complete 90 hours of approved continuing education of which 60 hours must be for tested credit. Assessor Education Committee The Director’s Assessor Education Committee is considering approval of “distance education” for continuing education credits for assessors and deputies. Distance education could include CD-ROM, online learning, correspondence courses, video conferencing, etc. The consensus of the committee is that the requirements for qualifying the credit would be the same as onsite courses; however, the committee may limit the number of hours of distance education within each certification period. The current requirements are: • Copy of course outline (which includes a breakdown of the hours for the day) • Final examination (if tested) • Name, address, and qualifications of instructor • Signature of instructor
Iowa Department of Revenue - Iowa Property Tax News Page 1
Current members of the Assessor Education Committee include IDR Director Mark Schuling, IDR Administrator of Property Tax Dale Hyman, City of Cedar Rapids Deputy Assessor Beth Weeks, and Marion County Assessor Drew Sanders. Approved courses and application for approval and credit may be found on the IDR Web site at http://www.iowa.gov/tax/locgov/propeducation.html. Examples of the types of continuing education The following workshops and conferences are examples of the types of continuing education Iowa assessors are receiving. Northeast District of ISAA workshop A board of review workshop hosted by the Northeast District of ISAA was held in Waverly, Iowa, on April 24, 2009. There were approximately 70 attendees representing boards of review and assessment personnel. Cary Halfpop, chief appraiser of the Property Tax Division, led the discussion on topics highlighting board duties and responsibilities such as session types, grounds for appeal, valid protests, open meetings, and procedural considerations. It was a productive session that included excellent participation by the attendees with many good questions and comments.
North Central Regional Association of Assessing Officers Conference (NCRAAO) The annual NCRAAO Conference was held in Coralville, Iowa, from June 15-17. The conference was well attended by Iowa assessors who also played a big role in organizing the conference.
Iowa Department of Revenue - Iowa Property Tax News Page 2
Iowa Counties Information Technology The ICIT 2009 Mid-Year Conference was held June 1012 at the West Des Moines Marriott. This year’s conference was co-chaired by Mark Castenson and Wayne Chizek. There were excellent sessions on GIS, Information Technology, Security and Web sites. It was a great opportunity to expand everyone’s knowledge base and explore new approaches to the various types of technology required in today’s county government.
Lincoln Institute of Land Policy The Lincoln Institute recently made their national studies of property tax available online at http://www.lincolninst.edu/subcenters/ significant-features-property-tax/
Questions about assessor education or reappointment may be directed to Carmen Putzier, IDR, at carmen.putzier@iowa.gov.
LEGISLATION, POLICY, and OPINIONS
Legislation 2009 HF 810 provides that small wind energy systems operating in a small wind innovation zone will be eligible for the renewable energy tax credit of one and one-half cents per kilowatt-hour of electricity. The small wind energy system must have a nameplate generating capacity of 100 kilowatts or less. HF 810 Summary HF 477 says Social Security Numbers and federal tax identification numbers on declaration of value forms are confidential and cannot be obtained by public inspection and that the Department of Revenue is responsible for keeping the Social Security Numbers and federal tax identification numbers confidential. HF 477 Summary SF 43 establishes new due date for religious, literary, and charitable societies that acquired property by gift or purchase but failed to file a timely claim for property tax exemption. SF 43 Summary SF 322-G The Director of Revenue has been required to complete the valuation of utility properties by the second Monday in July and certify the valuations to the county auditor by the third Monday in August. The legislation changes the completion of valuation of utility properties to October 31. For several years the Director has approved an extension that resulted in the valuations being due on October 31, so it codifies existing practices. SF 322-G Summary SF 456-B provides for an expanded income tax credit for wind energy. This legislation makes locally assessed wind towers eligible for the income tax credit under 476B. If the tower(s) are assessed locally under 427B.26, they do not need approval from the board of supervisors. If the tower is assessed under 441.21, an application and approval by the board of supervisors is required. SF 456-B Summary SF 457-A allows local governments to establish disaster revitalization areas by ordinance in areas that have been declared disaster areas by the Governor or President. The local government can provide for an exemption of the value increases over the January 1, 2007, assessment, for a 5-year period, for no more than 100 percent of the increase if the improvements are made between May 25, 2008, and December 31, 2013. SF 457-A Summary SF 478-R This is bill for exemption for data centers with at least 5,000 square feet and an investment of over $200 million in an Iowa physical location. Application is made to the assessor by February 1. The Iowa Department of Revenue will determine if the project meets the established criteria. SF 478-R Summary SF 478-U expanded the methane gas exemption to include the entire facility. If the facility is not used in conjunction with a publicly-owned land fill limits the exemption to 10 years. To qualify, the facility must be placed in service on or after January 1, 2008, and on or before December 31, 2012. SF 478-U Summary Iowa Department of Revenue - Iowa Property Tax News Page 3
Opinions and Policies Since our first quarter newsletter, we have issued the following opinions: Amends sub rule 701-70.12(1) to provide that wind energy tax credits that may be applied against the replacement tax due for electric companies. Amends sub rule 701-70.12(2) to extend by one year the period of time for electric companies to claim a reimbursement of replacement tax paid for using soy-based transformer fluid in their operation. Amends rule 701-80.5 to provide property tax exemptions on building and land used for speculative shell purposes. Amends rule 701-80.26 to provide property tax exemptions for Web search portal businesses. New rule 701-80.27 that requires privately owned libraries and art galleries to file a claim for property tax exemption
The following memorandums have been received from the IDR Policy Section. Delinquent taxes do not affect the right of a claimant to receive the reduced tax rate on a mobile home. Rent paid by FEMA to flood victims is not considered rent paid by the person and cannot be included for purposes of a rent reimbursement claim. If the amount of consideration is not disclosed to the recorder and the conveyance is subject to the tax, the recorder should refuse to record the document as provided in section 428A.4. In order to receive the residential classification pursuant to section 441.21(11), a property must be owned by a multiple housing cooperative. The cooperative cannot lease the property to receive the residential classification. Once a special valuation is enacted for wind energy conversion property, it lasts indefinitely but with a minimum of 20 years. If the special valuation ordinance is repealed, the property should be valued at the market value rather than 30 percent of the net acquisition cost. Go to the opinions section of the property tax section of the Department’s Web site for the complete text of these memorandums. The Methane Gas Conversion Property Tax Exemption Application had been updated to reflect legislation changes due to the recent enactment of Senate File 478.
Iowa Department of Revenue - Iowa Property Tax News Page 4
Appraisals
Fewer Commercial Appraisals for 2011 Equalization Property tax staff appraisers will be completing commercial appraisals in fewer jurisdictions for the 2011 equalization cycle. Only 70 of the 107 jurisdictions will require appraisals. Estimates of the number of commercial sales over the next two years were used to eliminate the following jurisdictions from appraisal requirements: Allamakee, Fayette, Dubuque city and county, Jackson, Clinton city and county, Scott, Davenport, Muscatine, Des Moines, Henry, Lee, Johnson, Iowa City, Linn, Cedar Rapids, Black Hawk, Mason City, Marshall, Marion, Mahaska, Wapello, Polk, Dallas, Ames, Webster, Kossuth, Dickinson, Clay, Buena Vista, Carroll, Cass, Shelby, Pottawattamie, Sioux City, and Sioux. The number of appraisals to be completed in all other jurisdictions will remain at 12 for this cycle. We will also do jurisdictional reviews in all 107 jurisdictions. This will involve staff appraisers collecting a variety of information pertaining to each jurisdiction’s assessment records. Much of this information exchange is expected to be done electronically. As always, we look forward to working with the assessors on both of these projects.
Equalization
2009 Commercial Equalization Statistics Summary Don’t forget to visit our Web site regularly at www.iowa.gov/tax/locgov/propcommercial.html to check the sales data used for 2009 equalization, as well as the latest sales data for 2009. As of May 27, 2009, sales data statewide reflected
“This map is based on current data as of 05/27/2009. The addition of new data will alter map results.”
Iowa Department of Revenue - Iowa Property Tax News Page 5
Time Adjustment for 2009 Equalization of Commercial Sales IDR will be making a negative time adjustment to sale prices of commercial sales for the 2009 equalization process. The adjustment will be applied uniformly statewide to all commercial sales that occurred in a specific quarter. A full explanation of the time adjustment process for 2009 commercial sales is on our Web site at www.iowa.gov/tax/locgov/calculation_time_adjustment.pdf.
“This map is based on current data as of 05/27/2009. The addition of new data will alter map results.”
2011 Equalization IDR’s goal is to continue to broaden the sales data base. The following changes in practices will happen immediately and be applied to 2009 sales for 2011 equalization. They will not impact 2009 equalization: • A full two years of commercial sales and in some instances residential sales will be considered for the 2011 equalization. • Sales to tenants will be considered normal but an adjustment will be made based on statistics. • Adjusted contract sales will be considered for the commercial class. • Trust sales (except by a court-appointed trustee) will be considered normal. Our studies indicate there is not a significant difference between trust sales and other arm-length transactions. • Sales with error in description will be coded normal initially. The status can be reviewed when the error is corrected. The corrected deed will be considered abnormal. The old and new sales’ condition guidelines may be viewed on our Web site at http://www.iowa.gov/tax/locgov/propequalroll.html
Iowa Department of Revenue - Iowa Property Tax News Page 6
Central Assessments
Central Assessments has been involved in providing information to the Utility Replacement Tax Task Force as they analyze the assessment procedures for new cogeneration facilities. We presented to the task force an analysis of the tax dollars produced by a specific cogeneration facility in Clinton; if the facility were locally assessed, centrally assessed, or under a split assessment procedure. The task force will review this data and look at the effect of these assessment procedures on tax-levying authorities, consumers, and taxpayers. The task force will then make a recommendation on what assessing methodology to utilize that will follow the purposes of the replacement tax as outlined in Chapter 437A.
Get To Know
Work Experience • Jim Moyle is a technical tax specialist in the Property Tax Division of the
Iowa Department of Revenue. Jim began his employment with the Department in 1982 as a revenue examiner working with the elderly and disabled property tax credit and rent reimbursement program. Jim is currently responsible for providing technical information to county officials and the public on the various property tax credits and exemptions. He also develops and revises all forms utilized for the various programs and exemptions due to legislative, administrative or processing changes. Jim also works with county recorders in the administration of the real estate transfer tax. Jim graduated from Tarkio College with a degree in business administration.
Jim Moyle Revenue Examiner jim.moyle@iowa.gov Position:
Technical Tax Specialist
Personal • Jim has been married to his wife Marjean for 37 years and they have three
sons and three grandchildren. Two of the grandchildren live in Michigan, so Jim spends his vacation time going to visit them. Marjean recently retired from teaching.
Work Experience • Carmen Putzier began her employment with the Department of Revenue in
Carmen Putzier Revenue Examiner carmen.putzier@iowa.gov Position:
Revenue Examiner III
February 1985 as a clerk responsible for processing motor fuel claims. In 1988 she became a Clerk III, processing income tax returns and overseeing 28-30 seasonal employees. In 1989 she transferred to the Property Tax Division as a Clerk III to process declaration of value forms. In 1993 she became a Revenue Examiner II, responsible for verifying declaration of value form information and assisting with the equalization process. Carmen is also responsible for keeping track of continuing education hours for assessors and deputy assessors, overseeing basic assessment school that is provided every two years, providing support for the annual ISAA fall school, and overseeing the assessor and deputy assessor exams that are administered twice a year. In 2004 she was reclassified as a Revenue Examiner III.
Personal • Carmen has been married to her husband Kurt for 18 years, and they have
one daughter. She enjoys spending time with family and friends, and watching her daughter play softball.
Iowa Department of Revenue - Iowa Property Tax News Page 7
Our Mission The Property Tax Division assists local governments · Issues equalization orders to county auditors every
in making property tax assessments fair and in compliance with the law. The division performs the following functions: · Provides technical assistance and educational programs for assessors and board of review members · Administers certification exams for assessors and deputy assessors two years based on comparisons of sales and Department appraisals to assessed values · Assesses all railroad, utilities and pipelines in the state · Advises local government officials and taxpayers on property tax issues, including credits and exemptions and appraisal methodology
Property Tax News
This report is provided quarterly by the State of Iowa Department of Revenue and is distributed electronically unless a printed version is requested. If you would like to be added or removed from the distribution, please contact: rhonda.weber@iowa.gov Mark Schuling, Director, Iowa Department of Revenue Dale Hyman, Property Tax Administrator mark.schuling@iowa.gov dale.hyman@iowa.gov Questions and comments are always welcome.
Acknowledgment The IDR Property Tax Division would like to recognize the assistance in editing and publishing the newsletter that Renee Mulvey, Public Information Officer, and Brian Bemisdarfer, Information Specialist, contribute. They do good work.
Iowa Department of Revenue - Iowa Property Tax News Page 8