Guidebook to Funding Transportation Through Land Value Return and Recycling (2018)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

D-1 This Appendix provides select examples of existing legislation related to land value return concepts illustrated in the Guidebook, an example of a letter that can be modified to a state’s particular circumstances and then sent to the State Attorney General to inquire as to the author- ity to implement certain land value return methods, and model legislation for revising property tax law to enable the implementation of land value return. Examples of Existing Legislation Property Tax: Transformation into Land Value Return Fee Maryland Article 15 of the Maryland Declaration of Rights recognizes that land and improvements on land are separate classes of property: Art. 15. That the levying of taxes by the poll is grievous and oppressive, and ought to be prohibited; that paupers ought not to be assessed for the support of the government; that the General Assembly shall, by uniform rules, provide for the separate assessment, classification and sub-classification of land, improvements on land and personal property, as it may deem proper; and all taxes thereafter provided to be levied by the State for the support of the general State Government, and by the Counties and by the City of Baltimore for their respective purposes, shall be uniform within each class or sub-class of land, improvements on land and personal property which the respective taxing powers may have directed to be subjected to the tax levy; yet fines, duties or taxes may properly and justly be imposed, or laid with a political view for the good government and benefit of the community (amended by Chapter 390, Acts of 1914, ratified Nov. 2, 1915; Chapter 64, Acts of 1960, ratified Nov. 8, 1960). Pennsylvania The following language is from an act of the state legislature in 1913 mandating that second- class cities (Pittsburgh and Scranton) impose lower rates of property tax on buildings than on land. The ratio of the building tax rate to the land tax rate was to change from 1:1 in 1913 to 1:2 by 1925. The gradual phase-in of differential tax rates caused this reform to be known as the “graded tax.” Laws of Pennsylvania, 1913, page 209. No. 147. AN ACT Amending article 6 of an act, entitled “An act for the government of cities of the second class,” approved the seventh day of March, Anno Domini 1901, as amended by an amendatory act, approved the first day of April, Anno Domini 1909, and as affected by an act entitled “An act providing a uniform rate of assess- ment and taxation for all real estate in cities of the second class,” approved the eleventh day of May, Anno Domini 1911; by providing for the classification of real estate for purposes of taxation into two classes: to wit, the buildings on land, and the land exclusive of buildings, and by providing for the assessment of a less tax upon the buildings than upon the land exclusive of the buildings, in cities of the Second class. A P P E N D I X D Legislative Aids

D-2 Guidebook to Funding Transportation Through Land Value Return and Recycling Article VI. Department of Assessors This department shall consist of no less than 5 nor more than 9 persons, who shall have been residents of the city for at least 10 years; all of whom shall not be of the same political party. The number of assessors in this department shall be designated by ordinance; and they shall, from time to time, make all valuations for purposes of municipal taxation. They shall classify all real estate in the city in such a manner, and upon such testimony as may be ad- duced before them, so as to distinguish between the buildings on land and the land exclusive of the build- ings, and to certify to the council of said city the aggregate valuation of city property subject to taxation. It shall be the duty of said councils, in determining the rate for the years 1914 and 1915 to assess a tax upon the buildings equal to nine-tenths of the highest rate of tax required for said years; and for the years 1916, 1917 and 1918, to assess a tax upon the buildings equal to eight-tenths of the highest rate of tax required to be assessed for those years; and for the years 1919, 1920 and 1921, to assess a tax upon the buildings equal to seven-tenths of the highest rate of tax required to be assessed for those years; and for the years 1922, 1923 and 1924, to assess a tax upon buildings equal to six-tenths of the highest rate of tax required to be assessed for those years; and for the year 1925, and for each year thereafter, to assess a tax upon the buildings equal to five-tenths of the highest rate of tax required to be assessed for the year 1925, and for each year thereafter, respectively, so that upon the said classes of real estate of said city there shall, in any year, be two rates of taxation. Approved—The 15th day of May, A.D. 1913. Model Property Tax Legislation At the end of this appendix is model legislation that could be considered in efforts to modern- ize property taxes so as to • Permit land and improvements to be considered separate classes of property; • Permit different tax rates to be established for land and for improvements; and • If land and improvements are taxed at different rates, permit property owners to appeal the apportionment of assessment between land value and building value, even if the owners do not contest the total valuation of the property. Sale or Lease of Public Land or Air Rights State and local governments typically have the power to acquire and dispose of property. Thus, typically, no special legislation is required to sell or lease publicly owned land or air rights. However, if public property was acquired with federal funds (or if transportation facilities were constructed on land using federal funds), federal regulations may circumscribe aspects of the sale or lease of land or air rights associated with such property or facilities. (23 CFR 710.403 and 23 CFR 710.701–710.709) Special Assessment Districts Missouri Missouri Revised Statutes, Section 238.200–275. www.moga.mo.gov/mostatutes/stathtml/ 23800002001.html Texas Transportation Infrastructure Zone Enabling Legislation. Texas Transportation Code Title 5. Railroads Subtitle I. Special Districts. Chapter 173. Intermunicipal Commuter Rail Districts Sec. 173.256. Financing of Certain Transportation Infrastructure. Applies only to local gov- ernments (excludes school districts) with district membership and authorization to impose ad-valorem taxes on real property. District may enter interlocal agreement with local gov- ernment member(s) for financing transportation infrastructure. Agreement may establish one or more transportation improvement zones (TIZs). TIZ statute does not include public

Legislative Aids D-3 process for creating zone. TIZ funding used by district for local match for right-of-way acquisition in local government’s territory or design, construction, operation, or main- tenance of transportation facilities in local government’s territory. TIZ funding may not exceed 30 percent of captured assessed value. http://law.onecle.com/texas/transportation/ 173.256.html Virginia Transportation Improvement District is a mechanism to raise revenue for repair of roads, highways, and bridges within a defined geographic area. Revenue from fees is returned or recycled to the city or county’s transportation improvement fund. Although the U.S. Department of Transportation has acknowledged these entities, no specific regulation or provision directly addresses them. Therefore, the formation and regulation of such improvement districts occurs on the state and local government levels. At least two states (Ohio and Virginia) have legislation governing transportation improvement districts. Virginia Acts of Assembly. Chapter 15, “Transportation Districts Within Certain Counties.” http://leg1.state.va.us/cgi-bin/legp504.exe?011+ful+HB2671ER https://lis.virginia.gov/cgi-bin/ legp604.exe?171+ful+HB2193ER Ohio Ohio adopts a regional approach to special assessments via the Transportation Improvement Districts, which are typically established at the county level by the County Commissioner. Ohio has several operating districts. Ohio Revised Code, Chapter 5540. Title 55. Transportation Improvement Districts. http:// codes.ohio.gov/orc/5540 Washington, D.C. New York Avenue Metro Special Assessment Authorization Act of 2001, D.C. Law 14-44, October 26, 2001; D.C. Official Code § 47–881 thru § 47–885. https://beta.code.dccouncil.us/ dc/council/code/titles/47/chapters/8/subchapters/V/ Illinois The 1970 Illinois Constitutional Convention granted municipalities and counties the author- ity “to levy or impose additional taxes upon areas within their boundaries in the manner pro- vided by law for the provision of special services to those areas and for the payment of debt incurred in order to provide those special services.” Special Service Area Tax Law, Article 27, 35 ILCS 200/27. Development Impact Fees Typically, impact fees are authorized by an “adequate public facilities” law. These laws stipulate that proposed development activity may be permitted only to the extent that existing public facil- ities (schools, streets, water and sewer, etc.) are capable of accommodating the proposed devel- opment. To the extent that public facilities cannot accommodate a proposed new development, these laws establish how fees can be established to compensate the permitting jurisdiction for the required expansion of public facilities and that development permits can be granted in exchange for the payment of such fees. Examples of development impact fee legislation are provided below. For a more complete list of state statutes, see the report State Impact Fee Enabling Acts, by Clancy Mullen, Duncan Associates (January 2015), www.impactfees.com/publications%20pdf/ state_enabling_acts.pdf.

D-4 Guidebook to Funding Transportation Through Land Value Return and Recycling Maryland In the law excerpted below, the State of Maryland authorizes the county commissioners of Washington County to establish a local ordinance to determine the adequacy of public facilities and to establish and charge a fee to developers when proposed developments would require the county to expand those facilities. Maryland LAND USE Code Ann. § 9–1902 (2017) § 9–1902. Adequate public facilities law. (a) “Public facilities” defined. – In this section, “public facilities” means schools, roads, water, wastewater, and stormwater management facilities, and other infrastructure supported by the federal, State, or local government for public purposes. (b) Authority to adopt local law. – In addition to the authority granted in Title 7, Subtitle 1 of this article, the county commissioners may provide by local law for the provision and financing of adequate public facilities concurrently with the need for those facilities. (c) Contents of local law. – The local law may include the authority for the county commissioners to: 1) determine the functional or design capacity of public facilities; 2) establish standards for determining the adequacy of public facilities; 3) determine school capacity standards; 4) determine the student yield factors for schools at various levels; 5) establish categories of developments that will be exempt from the application of the local law; 6) establish formulas for measuring available capacity of public facilities; 7) determine the adequacy of public facilities in areas affected by new developments in the develop- ment plan review process; 8) enter into agreements with developers providing for the payment of monetary compensation to address inadequacies in public facilities caused by proposed developments as a part of the development plan approval process; 9) determine the value of in-kind contributions of equivalent value such as real estate; 10) require forfeiture of contributions 3 years after final plat approval; 11) establish an appeal process for decisions made under the local law; 12) limit the number of building permits in any school district; and 13) limit the number of residential building parcels approved for development on an annual basis. (d) Penalty for violation of local law. – The local law may authorize the county commissioners to impose civil fines and penalties for any violation of the local law. HISTORY: An. Code 1957, art. 66B, § 14.08(a), (c)–(e); 2012, ch. 426, § 2. In the law excerpted below, the State of Maryland authorizes the county councils of Mont- gomery County and Prince George’s County to establish local ordinances to determine the adequacy of public facilities and to establish and charge a fee to developers when proposed developments would require the county to expand those facilities. Md. LAND USE Code Ann. § 23-106 (2017) § 23–106. Adequate public facilities requirements. (a) In general. – In addition to any other authority granted by this division, the County Council of Mont- gomery County and the County Council of Prince George’s County, by local law, may impose in their respective counties standards and requirements for the purpose of avoiding scattered or premature subdivision or development of land because of the inadequacy of transportation, water, sewerage, drainage, school, or other public facilities. (b) Prince George’s County. – (1) This subsection does not apply to any property located in an infrastructure finance district approved before January 1, 2000. (2) Notwithstanding subsection (a) of this section, the County Council of Prince George’s County shall impose adequate public facilities standards and requirements under subsection (a) of this section with respect to schools. HISTORY: Ann. Code 1957, art. 28, § 7–120; 2012, ch. 426, § 2. The Development Impact Fee ordinance for Montgomery County, Maryland can be found in Articles IV, V, and VI of Chapter 52 of the Montgomery County Code. See http://library.amlegal. com/nxt/gateway.dll?f=templates&fn=default.htm&vid=amlegal:montgomeryco_md_mc.

Legislative Aids D-5 Montana Montana authorizes impact fees. See Montana Code Annotated, Title 7, Chapter 6, Part 16 at http://leg.mt.gov/bills/mca_toc/7_6_16.htm. Bozeman, Montana: Development Impact Fees See Bozeman Montana Code of Ordinances, Chapter 2 (Administration), Article 6 (Finance), Division 9 (Impact Fees): Sec. 2.06.1600–Sec. 2.06.1640. www.municode.com/library/mt/ bozeman/codes/code_of_ordinances?nodeId=PTIICOOR_CH2AD_ART6FI_DIV9IMFE_ S2.06.1640TRIMFE Illinois In Illinois, home rule municipalities of any population and counties with a population of greater than 400,000 can impose road improvement impact fees. This enabling act states that fees are to be used only for roads that are directly affected by traffic demands generated by new development (605 ILCS 5/Art. 5 Div. 9). www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=1745& ChapterID=45&SeqStart=25200000&SeqEnd=27200000 Home rule entities in Illinois are able to enact impact fees for several other types of infrastruc- ture such as water, sewer, stormwater, parks, fire, police, library, solid waste, and schools. These impact fees generally follow processes and requirements similar to those outlined in the road improvement law. However, the calculation of the fee and structure of the ordinance are left to each local government. Utah Utah has three statutes that govern exactions and impact fees: • Municipal and County Land Use Acts, UTAH CODE ANN. §10-9a-508 (2006); §17-27a-507; • Utah Private Property Protection Act, §§63-90-1–4; §§ 63-90a-1–4; UTAH CODE ANN. §78- 34a-4(1) (1993); and • Utah Impact Fees Act, UTAH CODE ANN. §§11-36-101–501 (2006). Washington State In Washington State, counties, cities, and towns that are required to (or choose to) plan under the Growth Management Act (RCW 36.70A.040) are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing for system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees. See the Revised Code of Washington, RCW 82.02.050 at http://app.leg.wa.gov/RCW/default.aspx?cite=82.02.050. Oregon Oregon’s Transportation System Development Charges allow for all modes of transportation to be addressed with the impact fee. Oregon Revised Statute 223.397-223.314. Local improvements and works generally. 223.301 System Development Charges. https://www.oregonlegislature.gov/bills_laws/ors/ors223.html Proffers and Exactions Virginia 2016 Code of Virginia, Title 15.2—Counties, Cities and Towns, Chapter 22—Planning, Subdivision of Land and Zoning, § 15.2-2303–2303.4. Conditional zoning in certain localities. http://law.justia.com/codes/virginia/2016/title-15.2/chapter-22/section-15.2-2303/

D-6 Guidebook to Funding Transportation Through Land Value Return and Recycling See also NCHRP Legal Research Digest 70: Takings and Mitigation, by T. R. Wyatt and J. B. McDaniel, Transportation Research Board, Washington, D.C., 2016, www.nap.edu/read/23619/ chapter/1. Transportation Utility Fee Transportation utility fees are monthly fees paid by property occupants for the benefit of receiving ongoing transportation services. Fees are typically computed on the basis of estimated utilization as derived from trip generation rates for particular types of property, as computed by the Institute of Transportation Engineers. The transportation utility fee ordinance for Oregon City, Oregon (Ordinance No. 08-1007) appears to be authorized by the city’s home rule powers (2015 Oregon Revised Statutes). The ordinance can be found at www.orcity.orgong/sites/default/files/fileattachments/public_works/ page/4356/ordinance_no_08-1007.pdf. The trip generation table used to calculate fees pursuant to Oregon City Ordinance No. 08-1007 can be found at www.orcity.org/sites/default/files/fileattachments/public_works/page/4356/ appendix_a_to_ordinanance_08-1007_-_summary_of_ite_trip_generation_tables.pdf. Tax Increment Financing See American Planning Association Growing Smart Project, Model Tax Increment Financing Statute. www.cdfa.net/cdfa/cdfaweb.nsf/ord/e5d5dbddd56bfa7088257936005c9e1d/$file/ apa%20model.pdf. Kansas Enabling Legislation. Kansas Statutes Annotated Chapter 12, Article 17, Section 75a. http://kslegislature.org/li_2012/b2011_12/statute/012_000_0000_chapter/012_017_0000_ article/012_017_0075a_section/012_017_0075a_k/ Michigan Tax Increment Financing Authority Act. Michigan Compiled Laws Chapter 125, Sec- tion 125.1801–1830. www.legislature.mi.gov/(S(mvovexzlq5scammgl2kqpy1x))/mileg.aspx? page=GetObject&objectname=mcl-act-450-of-1980 Texas Enabling Legislation. Texas Tax Code Title 3. Local Taxation. Subtitle B. Special Property Tax Provisions. Chapter 311 Tax Increment Financing Act. (Originally adopted 1981; amended 2005) www.statutes.legis.state.tx.us/Docs/TX/htm/TX.311.htm Illinois Illinois General Assembly. Illinois Tax Increment Allocation Redevelopment Act (65 ILCS 5/ 11-74.4-1 through 11-74.4-11): The Tax Increment Financing Act. http://www.ilga.gov/ legislation/ilcs/ilcs4.asp?DocName=006500050HArt%2E+11+Div%2E+74%2E4&ActID=802& ChapterID=14&SeqStart=210000000&SeqEnd=212200000

Legislative Aids D-7 Sample Letter to State Attorney General [official letterhead] Date The Honorable _______________ Office of the Attorney General Dear Attorney General ______, State officials have expressed a desire for job creation, affordable housing, and improvements to transportation infrastructure. Land value return is a policy tool that can be used to • Raise funds for transportation infrastructure and • Reduce the cost of buildings and land, thereby preserving and creating more affordable resi- dential and commercial opportunities. Land value return is the process whereby higher land values generated by new or improved infrastructure are returned to the community that creates and operates that infrastructure. The property tax already imposes a tax on land values. The property tax, therefore, has some embed- ded land value return. The extent of this land value return, however, is very minimal. For every $100 of publicly created land value (from infrastructure investment), only a small percentage is returned to the public pursuant to the existing property tax rate (looking at the combined prop- erty tax rate of all levels of government currently authorized to collect a property tax). Some states, counties, and cities, seeking greater land value return benefits have transformed their property tax into a land value return fee by reducing the property tax rate applied to pri- vately created building values while increasing the property tax rate applied to publicly created land values. Sometimes this technique is referred to as a “split rate” property tax. For example, Harrisburg and about 15 other Pennsylvania jurisdictions use this technique. If the State Legislature wished to enact legislation to implement a land value or split rate tax, are there any legal impediments? For example, most states require that property tax rates be uniform for each class of property. Is there any restriction, either in the State Constitution or Statute, that would prevent or inhibit the Legislature from defining land and improvements to land (buildings) as separate classes of property that could be subject to separate rates of taxation? Additionally, land value return techniques presume that real property assessments of both land and improvements are uniform and reflect market value. Lower taxation rates are applied to the assessed value of improvements and higher rates to the assessed value of land to make both land and buildings more affordable and to recycle publicly created land values. Does our state allow or require that property be assessed at fair market value for property tax purposes? Does our state impose any requirements or restrictions on the frequency or magnitude of reassessment that may occur from time to time? Finally, may our state delegate the power to tax land values and building values at different rates to other levels of government, such as counties and cities? Could this technique be utilized where special taxing districts are authorized? Thank you for assisting us in understanding the legal framework within which land value return policy tools can be implemented. I look forward to your reply. Sincerely,

D-8 Guidebook to Funding Transportation Through Land Value Return and Recycling Model Legislation to Enable Land Value Return The constitutions and statutes of the 50 states vary to a considerable degree; therefore, model legislation is not universally applicable. There are principles and concepts that can be applied as appropriate within the context of each state’s legal environment to enable land value return methods to be implemented. These are discussed below. Uniformity Most state constitutions contain a clause or provision for “uniformity.” Generally, uniformity requires that state laws apply equally to all persons under the same conditions and in the same cir- cumstances. With regard to taxation, the burden of taxation must be alike on all property under the same conditions and in the same circumstances within the taxing jurisdiction. However, the question of what property is “under the same conditions and in the same circumstances” is open to interpretation. Generally, the law allows for the classification of property if the classification is reasonable and naturally inherent in the subject matter. Some jurisdictions classify residential property differently from commercial property and tax them at different rates. Many jurisdictions also permit tax abatements on improvements under specified circumstances. Thus, it should gen- erally be permissible to classify “land” and “improvements to land” as different classes of property that could be subject to different rates of taxation as long as all similar land parcels are taxed the same and all similar improvements are taxed the same. Legislative language will need to reflect the unique constitutional, statutory, and case law surrounding uniformity in each state. Building Blocks for Property Tax Modernization There are several elements that model property tax legislation should contain: Statement of Purpose. This legislature establishes a tax on the real property in this jurisdic- tion to achieve the following objectives: (1) Equitable return of the financial burden of the government; (2) Full public information regarding assessments and appeal procedures; (3) Promotion of economic activity, diversity of land use, and preservation of historic character; (4) Assurance that shifts in the tax burden on individual taxpayers will not be excessive from year to year; and (5) Comparability of tax effort between this jurisdiction and its surrounding jurisdictions in the metropolitan area and between this jurisdiction and jurisdictions of comparable size. Definitions. Among other things, such as the definition of who is liable for paying taxes, there should be a definition of the market value of property, such as: The term “estimated market value” means 100% of the most probable price at which a particular piece of real property, if exposed for sale in the open market with a reasonable time for the seller to find a purchaser, would be expected to transfer under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other. Identification of Real Property. A system must be established to provide a unique identi- fier for each parcel of real property. This identification system must be able to distinguish one property from another. Most jurisdictions adopt a “Parcel and Square” numbering system. Authority to Set Rates. (a) The Legislature, after public hearing, shall by [rate-setting date] of each year establish, by act, rates of taxation, by class, as provided in § (b), and the rates shall be applied, during the tax

Legislative Aids D-9 year, to the assessed value of all real property subject to taxation. The Legislature, acting by resolution, may extend the time for establishing the rates of taxation. If the Legislature does extend the time for establishing the rates of taxation on real property, it must establish those rates for the tax year by permanent legislation. If the Legislature does not establish the rates of taxation of real property by [rate-setting date deadline], and does not extend the time for establishing rates, the rates of taxation applied for the prior year shall be the rates of taxation applied during the tax year. (b) For the purpose of levying taxes on real property in this jurisdiction, the Legislature may establish different classes of real property. (b-1) For all property tax years beginning [year], it is established that land and improve- ments to land are different classes of property. Assessments. (a)(1) The assessed value of all real property as of the valuation date shall be listed annually on the estimated assessment roll for real property taxation purposes. (2) The assessed value for all real property shall be the estimated market value of such property as of the valuation date, as determined by the Assessor. In determining the estimated mar- ket value for various kinds of real property, the Assessor may do so manually or through the use of an automated system or systems such as the Computer-Assisted Mass Appraisal System. The Assessor shall take into account any factor that may have a bearing on the market value of the real property, including, but not limited to, sales information on simi- lar types of real property, mortgage, or other financial considerations, reproduction cost less accrued depreciation because of age, condition, and other factors, income-earning po- tential (if any), zoning, and government-imposed restrictions. Assessments shall be based upon the sources of information available to the Assessor, which may include actual view. (3) Notwithstanding paragraph (2) of this subsection, in the case of a property for which the most recent assessment has been changed as a result of an appeal to the Board of Assess- ments and Appeals, the reasons for the revised assessment determined by the Board shall be considered the basis for the subsequent valuation by the Assessor, who shall take into account the written decision of the Board and its reasoning in making the assessment, so long as the revised assessment is rendered by the Board on or before [date]. (b) All real property shall be assessed on an annual basis. Assessments—Notice to Taxpayers. (a) Except as provided in subsection (b) of this section, beginning as soon as possible after Janu- ary 1 but no later than March 1, each owner of real property shall be notified of the assess- ment of his or her property for the next real property tax year. The notice, or the statement accompanying the notice, shall include (1) The address, parcel, square, use, and class of the real property; (2) The assessed value of the land and improvements (shown separately and in total) of the property for the next real property tax year and such amounts for the current real property tax year; (3) The amount and percentage of change in assessed value for the next real property tax year over the current real property tax year; (4) An indication of the reason for such change in assessment; (5) A statement of appeal procedures pursuant to § _________; (6) The citation to the regulations or orders under which the property was assessed; (7) The location of the assessment roll and sale ratio studies and the hours during which the information is available; and (8) An explanation of all special benefits, incentives, limitations, or credits that relate to real property taxes as a result of this or any other act. Each description shall include, but

D-10 Guidebook to Funding Transportation Through Land Value Return and Recycling not be limited to, application procedures and qualifying requirements. The title of each property tax relief program shall be capitalized, underlined, and printed in bold type. (b)(1) Beginning with real property assessments for Tax Year ____ and for each real property tax year thereafter, each owner of real property shall be notified of a proposed change in the assessed value of the owner’s real property on or before [date]. (2) A written notice of the proposed assessment shall be required if any of the following occurs: (A) The assessed value of the real property increases or decreases; (B) The classification of the real property changes; (C) An initial assessed value is established; or (D) A revaluation or reclassification is made. (3) The notice required pursuant to this subsection shall include the following information: (A) The address, parcel, square, and the classification of the real property; (B) The current assessed value of the real property; (C) The proposed assessed value; (D) A statement explaining the right of appeal procedures pursuant to § _________; (E) Unless published on the Internet or made available in writing to anyone who requests it from the Office of Tax and Revenue, an explanation of all special benefits, incentives, or deductions that relate to real property taxes; and (4) Notwithstanding any other law, the Assessor may notify an owner of real property of a proposed change in the assessed value of the owner’s real property before [date] if a delay occurs for cause, as determined by the Assessor. If a delay for cause occurs, the Assessor shall notify the owner of the delay within a reasonable period of time from discovery of the cause. If a delayed notice of proposed change in the assessed value is issued under this paragraph, a petition for administrative review in accordance with § ________ may be filed within 30 days after the date the delayed notice is mailed. Assessment Appeals. The legislature should establish a Board of Assessment and Appeals. This Board should have two primary functions: 1. To receive and evaluate complaints that property assessments do not conform to established criteria for accuracy and uniformity. Because assessments are an estimate of market value and because market value itself can be expressed as a range of values, assessment appeals are generally required to demonstrate an error equal or exceeding ___% of fair market value in order for the Board to mandate a change in a proposed assessment. To discourage frivolous appeals, the Board is empowered to increase the assessment if an evaluation of an appeal leads to the conclusion that a proposed assessment was too low. a. If real property is divided into classes, then owners should also be able to appeal the clas- sification of property. b. If land and improvements are to be taxed at different rates, then property owners should be able to appeal the separate assessments for land and improvements even if they do not contest the total assessment value. 2. To review assessment uniformity, even in the absence of specific complaints. Thus, if the law mandates assessment at full market value, and all properties are assessed below market value, there might not be any appeals or complaints. But, if one neighborhood is assessed at 90% of fair market value and another neighborhood is assessed at 70% of market value, then there is a lack of uniformity between the two neighborhoods and their assessments must be made uniform with respect to market value before tax rates are applied. Designation of Taxable and Nontaxable Real Property. Most jurisdictions have rules about which properties are subject to taxation and which ones are exempt. As a general rule, fewer exemptions and exceptions create a broader tax base and a perception of fairness.

Legislative Aids D-11 The Mayor shall publish, by class and by individual property, a listing of all real property exempt from the real property tax. Such listing shall include the address, parcel, and square number; the name of the owner; the assessed value of the land and improvements of such prop- erty, and the amount of the tax exemption in the previous fiscal year. Tax Exemption Limitation. (a) If a building (or a portion thereof) or grounds belonging to and actually used by an institu- tion, organization, or other entity exempt from real property taxation under the § _____ [the section above defining exempt property] is used to secure rent or income for an activity other than that for which the exemption was granted, the building (or portion thereof) or grounds shall be assessed and taxed, unless otherwise prohibited by law.