Property tax assessment practices. (FE)

Under the bill, in order to obtain certification, an assessment technician must complete 50 hours of education; an appraiser must complete 150 hours of education;

and an assessor, regardless of his or her certification level, must complete 300 hours of education.

Under current law, a certification expires five years after the date it was issued.

DOR may recertify a technician, appraiser, or assessor if the individual attends at least four annual training meetings held by DOR during the individual's term. In addition, an appraiser must complete 20 hours of continuing education and an assessor must complete 30 hours of continuing education. Under the bill, for recertification, in addition to the annual meeting requirements, technicians and appraisers must complete 50 hours of continuing education and assessors must complete 75 hours of continuing education.

Current law also requires that an individual seeking certification as an assessor or assessment personnel take an examination for each level of certification that the individual wishes to obtain. This bill provides that no person may take an examination for a higher certification level without first completing the exam at each lower level, and no person may take an examination for a higher level to avoid disciplinary action at the person's original examination level.

Finally, the bill requires DOR to conduct a background check on each individual seeking certification.

Expert assessment help Under current law, if a municipality determines that it is in the public interest to employ expert help to aid in making an assessment, the municipality may employ a person currently certified by DOR as an expert appraiser to aid in making an assessment. An applicant for appraiser certification must submit to DOR satisfactory evidence “that the applicant has acquired a thorough knowledge of appraisal techniques and general property assessment standards” and has successfully completed the applicable DOR examination.

This bill requires that a business entity employed by a municipality to provide expert appraisers to make an assessment also be certified by DOR. Generally, the entity must provide satisfactory evidence that all assessment personnel employed by the entity are certified by DOR and have completed the applicable education requirements. In addition, the entity must provide satisfactory evidence that it maintains detailed records of each request for assessment services, including the identity of each person that performs the services.

Finally, regarding access to certain records, the bill provides that if a person enters into a contract with an authority (such as a municipality or other government body) to provide property assessment services, the person may not charge the authority for access to any record maintained by the person related to those services.

Full valuation Current law requires each municipality to assess its property at full value at least once in every five-year period. Under the bill, each municipality is also required to conduct a revaluation of its property once in every 10-year period. In addition, the bill excludes expenditures for completing that revaluation from the municipality's property tax levy limit.

Reassessment Under current law, the owners of taxable property in any municipality, other than a first class city, whose property has an aggregate assessed value of not less than 5 percent of the assessed value of all of the property in the municipality may submit to DOR a written petition requesting DOR to review and correct the assessment. If DOR finds that the assessment of property in the municipality is not in substantial compliance with the law, DOR may order the reassessment of all or any part of that property. Current law does not provide a deadline for submitting the petition.

Under the bill, an affected property owner must submit the petition to DOR no later than January 31 of the year following the year of assessment sought to be corrected or 60 days after the Board of Review has adjourned for the year of that assessment, whichever is later.

Complaint requirement Under current law, a taxpayer may file a written complaint with DOR alleging that the assessment of one or more items or parcels of property in the municipality is radically out of proportion to the general level of assessment of all other property in the district. The value of the property in question may not exceed $1,000,000, as determined by the local Board of Review. Under the bill, the value of the property in question may not exceed $1,000,000, as determined by the local Board of Review and as adjusted by DOR to reflect the equalized value of property of the municipality.

Under current law, DOR determines the full value of the property in each county and municipality and compares that to values reported by each county and municipality.

That process establishes an “equalized value” for all items and parcels of property in the state.

Board of Review training Current law requires at least one member of a local Board of Review for the review of local property tax assessments to complete the annual training provided by DOR to members of the board. The bill requires all board members to complete the annual training.

Recreational mobile homes Under current law, a recreational mobile home is considered personal property and therefore is not subject to the property tax. However, other mobile homes are considered real property and are subject to the property tax. Current law defines a “recreational mobile home” as a prefabricated structure that is no larger than 400 square feet, or that is certified as complying with the applicable standard industry code, and that is designed to be towed and used primarily as temporary living quarters for recreational, camping, travel, or seasonal purposes.

Under the bill, recreational mobile homes, regardless of their square footage, are considered real property and subject to taxation.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.