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IN SB0449
Bill
AI Summary
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Effective July 1, 2017, prohibits county commissioners, county assessors, and township assessors from contracting for property tax audit services on a percentage basis or any method that ties payments to increases in assessed value or property tax revenue from discovered undervalued or omitted properties.
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County auditors may create a special nonreverting fund to deposit taxes, penalties, and interest collected from additional assessments on undervalued or omitted property, with distributions limited to contract fees and costs.
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For contracts entered after June 30, 2017, the county assessor must specify a monetary threshold in the contract, and when the fund exceeds that threshold, the county auditor must distribute excess funds to appropriate taxing units using current property tax rates.
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After contract expiration and required payments, all remaining money in the fund must be distributed to appropriate taxing units in the county using their property tax rates in effect at the time of distribution.
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Contracts for property tax audit services entered after June 30, 2017, may not exceed three years in length, including any extensions.
Legislative Description
Property tax audit contractor compensation. Extends the prohibition under current law against contracting for property tax audit services on a percentage basis to include any method that bases payments under the contract on increases of assessed value or property tax revenue that are attributable to the discovery of property that has been undervalued or omitted from assessment. Specifies conditions for intermediate distributions of property tax revenue that is collected before the expiration of a contract for property tax audit services. Provides that the term of a contract for property tax audit services may not exceed three years, including any extensions.
Last Action
Public Law 119
4/21/2017