Assessment Law Changes

March 31, 2016

TO: Assessors, Real Property Listers, County Clerks and Treasurers, Municipal Clerks & Treasurers

Subject: Assessment Law Changes

Four Property Assessment bills recently become law. Below is a summary of each bill.

  1. SB 440- Act 216 Summary
    • Effective March 3, 2016
    • Allows DOR to suspend assessor certification or order corrective action to avoid revocation or suspension of certification
    • Removes ability for assessors to take exam repeatedly for re-certification rather than attend continuing education and annual DOR meetings
      • Effective with certifications and renewals issued June 1, 2016 forward
    • No RETR required for conveyances solely to designate a TOD beneficiary under 77.25 (10m)
    • Allows DOR to provide utility assessment information to assessors
    • Removes obsolete references to the gift tax, sleeping cars, express companies, transitional adjustment period, and the woodland tax credit
    • Additional sales and use and excise tax adjustments

  2. AB 843 - Act 317 Summary
    • Effective March 31, 2016
    • When reviewing charge-back requests, DOR no longer determines if the assessment change impacted the Equalized Value
    • DOR approves charge-back requests when the request meets the requirements under 74.41(1) and the amount requirements under 74.41(2)
      • Refunded under 70.511, 74.35 or 74.37; rescinded or refunded under 74.33, 70.74 or 75.25(2); refunded or collected under 70.43
      • The refunded taxes for a single year in the taxation district total at least $5,000 or the tax for any single property is $500 or more
    • Taxes refunded, rescinded, collected, or corrected for properties within a Tax Incremental District (TID) are not eligible for a charge-back unless the TID's current value is less than the TID's base value in the year of the tax refund

  3. AB 575 - Act 321 Summary
    • Effective January 1, 2016
    • Requires DOR to publish preliminary equalized values, tax increment district values, and net new construction values on or before August 1
    • DOR corrects errors greater than 2% for final publication of values on August 15
    • Amended Municipal Assessment Reports and TID Assessment Reports from the assessor that are filed after the 2nd Monday in June are excluded from the correction process

  4. AB 576 - Act 322 Summary
    • Effective March 31, 2016
    • Shortens assessment compliance cycle by one year and changes a major class of property to 10%
    • Municipalities must be within 10% of the Equalized Value once every six years
    • DOR orders a state supervised assessment after six consecutive years of non-compliance
    • Changes major class of property from 5% to 10% of the municipality's total value
    • Removes assessor requirement to attend compliance training
    • DOR will provide additional information to municipalities that received a non-compliance notice in 2015

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