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FY2011-12 Amending 3.35.050 Board of Equalization Introduced by: Borough Assembly Requested by: Board of Equalization Drafted by: Borough Clerk and Assessor Introduced: 03/03/2011 Public Hearing: 03/17/2011 Adopted: 03/17/2011 1 2 KODIAK ISLAND BOROUGH 3 ORDINANCE NO. FY2011 -12 4 5 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 6 AMENDING TITLE 3 REVENUE AND FINANCE CHAPTER 3.35 REAL PROPERTY TAX 7 SECTION 3.35.050 BOARD OF EQUALIZATION 8 9 WHEREAS, KIBC Section 3.35.050 has not been updated since 1978 except for a minor 10 revision in 1998 which dealt with member appointments; and 11 12 WHEREAS, it is in the best interests of the Kodiak Island Borough to amend this section 13 to provide clear and better guidance for appellants regarding the BOE appeals; and 14 15 WHEREAS, the proposed changes also set better standards and establishes better 16 process for the Board of Equalization hearings. 17 18 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 19 BOROUGH THAT: 20 21 Section 1: This ordinance is of a general and permanent nature and shall become a part 22 of the Kodiak Island Borough Code of Ordinances; 23 24 Section 2: Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance 25 Chapter 3.35 Real Property Tax Section 3.35.050 Board of Equalization is hereby amended 26 as follows: 27 28 3.35.050 Board of equalization. 29 A. Membership, Qualification, Duties, Terms. 30 1. Members. The board of equalization shall be composed of five persons, not assembly 31 members, appointed by the assembly. At least one alternate member shall be 32 appointed. 33 2. Alternate Mombors. Tho assembly shall appoint alternate members. The alternate 34 35 36 37 38 Kodiak Island Borough Ordinance No. FY2011 -12 Page 1 of 7 39 2. Qualifications. Members and alternate members should be appointed on the basis of 40 their expertise in real and personal property appraisal, the real estate market, the 41 personal property market, and other fields related to their functions as board members. 42 Each member shall be a qualified voter of the borough and shall remain a resident 43 of the borough while in office. 44 3. Duties. The board may determine equalizations on properties brought before the 45 board by appellants. It shall only hear appeals for relief from an alleged error in 46 valuation on properties before the board by an appellant. 47 4. Terms of Office. Upon confirmation, members and alternate members shall serve for 48 three years or until their successors are appointed and confirmed. Of the members 49 initially appointed, two shall serve three -year terms, two shall serve two -year terms, and 50 one shall serve a one -year term. 51 5. Hearing Dates. The board shall commence hearings on the first Monday in May, 52 unless otherwise changed by resolution. Hearings will continue from day to day 53 as established by the board and the borough clerk until all properly filed appeals 54 have been heard. 55 56 B. Chairperson. The board annually shall elect a member to serve as its chairperson. The 57 chairperson may call meetings of the board, shall exercise such control over meetings as to 58 ensure the fair and orderly resolution of appeals, shall make rulings on the admissibility of 59 evidence, and shall conduct the proceedings of the board in conformity with this chapter. A 60 vice - chairperson shall also be selected to serve in the chairperson's absence. If both 61 are absent, the members present shall select a person to preside. 62 63 C. Appeals to the Board. 64 1. A person whose name appears on the assessment roll, or his agont or assigns the 65 authorized representative of that person, may appeal to the board for relief for an 66 alleged error in valuation not adjusted by the assessor to the taxpayer's satisfaction. The 67 authorized representative shall be named by the property owner in writing to the 68 assessor and board of equalization at the time of filing or no later than three days 69 in advance of hearing. The time requirement for providing a representative in 70 writing may be waived at the determination of the board during the hearing, if 71 good cause is shown that may include, but not limited to, the following: stranded 72 from Kodiak due to inclement weather, serious medical condition, serious family 73 emergency, or death in the family, 74 2. No appeal may bo takon unloss tho applicant filos with tho board writton notico of 75 appoal cpocifying grounds for such appoal within 30 e _ . e •• - e e _ e • e - •• e • 76 notico was mailod. Tho board shall proscribo tho form in which writton noticos of appoal 77 shall bo mado. 78 79 80 81 Kodiak Island Borough Ordinance No. FY2011 -12 Page 2 of 7 82 The appellant shall, within 30 calendar days after the date of mailing of notice of 83 assessment, submit to the assessor a written appeal specifying grounds for such 84 appeal. The board shall prescribe the form in which written notices of appeal shall 85 be made. Otherwise, the right of appeal ceases unless the board of equalization 86 finds that the taxpayer was unable to comply within the 30 day appeal period and 87 grants a hearing to the appellant. 88 3. The assessor shall notify the appellant by mail, and email if provided, of the time 89 and place for the hearing and assign a docket number of appeal. 90 4. Parties to whom notice was mailed as provided herein fail to appear, the board may 91 proceed with the hearing in their absence. All parties, their authorized 92 representatives, and witnesses must appear in person at the hearing. 93 5. The Assessor shall prepare for use by the board of equalization a summary of 94 assessment data relating to each assessment that is appealed. This summary 95 shall be provided to the board and made available to the appellant at least ten 96 calendar days before the hearing. Summary of assessment data for late -filed 97 appeals granted by the board will be provided as soon as practicable. 98 6. A city in the borough may appeal an assessment to the borough board of 99 equalization the same manner as a taxpayer. Within five days after receipt of the 100 appeal, the assessor shall notify the person whose property assessment is being 101 appealed by the city. 102 7. A property owner who seeks to appeal the assessor's valuation, after the 30 day 103 filing period has closed, shall file a letter with the assessor stating the reasons 104 why the property owner was unable to comply with the 30 day appeal period. The 105 deadline to file a late -file request is on April 15 of the current assessment year. 106 Should April 15 fall on a Saturday or Sunday, late filers shall have until 4:30 p.m. 107 on the first Monday following to file their request. 108 On the next business day following the deadline to file a late -file request or as 109 soon as is practicable, the board shall consider each letter and shall only consider 110 reasons the appellant was unable to comply with the 30 day appeal period. It shall 111 not consider evidence regarding property valuation. The appellant may not make 112 an oral presentation at the hearing. The determination shall be based on the letter 113 and supporting documents. The board shall interpret the term "unable to comply" 114 as meaning that a property owner must demonstrate compelling reasons or 115 circumstances which would prevent a reasonable person under the 116 circumstances from filing an appeal in a timely manner during the 30 day appeal 117 period. 118 If the late -file request is granted, the property owner shall have five calendar days 119 from the decision of the board to file an appeal and submit to the assessor's office 120 all documentary evidence in their possession which they wish to be considered 121 and which is relevant to the resolution of the appeal. If the late -file request is 122 denied, the assessor shall notify the property owner of the board's decision in 123 writing. 124 125 Kodiak Island Borough Ordinance No. FY2011 -12 Page 3 of 7 126 D. Quorum and Voting. 127 1. Quorum. A quorum shall consist of four members. 128 2. Voting. The granting of any appeal or part thereof shall require the concurring vote of 129 at least three board members. Any appeal or part thereof which is not granted by the 130 board shall be considered denied. 131 132 E. Hearings, Procedures. 133 1. Record. The clerk is the ex officio clerk of the board and shall prepare the board's 134 minutes. Tho cloth &hall rocord in tho minutos of oath mooting all procoodings boforo 135 tho board, tho namos of porconc protocting acsoscmonts, and all changos, rovisions, 136 . _ : - 'es _ _ e . o - _ - _ _ - _ _ _ _ _ _ _ -- The clerk shall keep 137 electronic recordings of the board's hearings per the borough retention schedule. 138 The board of equalization summary certification will constitute the board's 139 minutes. 140 2. Counsel. All parties may be represented by counsel during hearings before the board. 141 On procedural matters, the borough attorney may offer legal counsel to the board in 142 the course of its proceedings. Upon the recommendation of the borough attorney, 143 the board may retain legal counsel from another attorney for a particular matter. 144 3. Appeal Number. Every appeal shall be assigned a docket number which, along with 145 the name of the appellant, shall be read into the record before the hearings on the 146 appeal may commence. 147 4. Burden of Proof. The burden of proof rests with the appellant who must convince the 148 board by clear and convincing evidence that the assessment was unequal, excessive, er 149 improper, or undervalued based on the facts stated in a written appeal or proven at 150 the appeal hearing in accordance with subsections E5 and E7 of this section. If 151 the valuation is found to be too low, the board may raise the assessment. The 152 borough shall make available to the appellant all reasonably pertinent documents 153 requested for presentation of the appeal, including but not limited to, documents 154 presented or requested by the board of equalization for presentation of the appeal 155 in accordance with KIBC 3.35.050 C5. 156 5. Rules of Evidence. Evidence shall only be presented by the appellant and the 157 assessor or their authorized representative. The board shall not be restricted by the 158 formal rules of evidence; however, the chairperson may exclude evidence irrelevant to 159 the issues appealed. Hearsay evidence may be considered provided there are adequate 160 guarantees of its trustworthiness and that it is more probative on the point for which it is 161 offered than any other evidence which the proponent can procure by reasonable efforts. 162 The appellant must submit to the assessor's office by April 15 all documentary 163 evidence in their possession which they wish to be considered and which is 164 relevant to the resolution of the appeal. Should April 15 fall on a Saturday or 165 Sunday, appellants shall have until 4:30 p.m. on the first Monday following to 166 submit their evidence. 167 This evidence includes but is not limited to purchase and closing documents, 168 appraisal reports, brokers opinion of value, engineers' reports, estimates to repair, Kodiak Island Borough Ordinance No. FY2011 -12 Page 4 of 7 169 rent rolls, leases, and income and expense information. The board of equalization 170 may in its discretion decline to accept documents offered at the hearing which 171 should have been provided by April 15. In exercising this discretion, the board 172 shall consider the relevance and probative value of the documents which are 173 under consideration accepting those documents which in all fairness are 174 necessary to a fair resolution of the appeal. Prior to the board meeting, the 175 appellant and assessor may agree to an extension of time for the production of 176 evidence. 177 6. Order of Presentation. Tho appollant chall prosont hic argumont firct and may bo 178 quoctionod or oxaminod by tho board or tho ascoscor. Following tho appollant, tho 179 ascoscor shall prosont tho borough's argumont and muct eubmit to oxamination and 180 questions—by tho appollant. Tho appollant may, at tho diccrotion of tho chair, mako 181 robuttal procontations diroctod cololy to tho issues raicod by tho accoscor. Tho borough 182 attornoy may quoction tho appollant or tho ascoscor on mattore rotating to tho appoal. 183 The order of presentation is as follows: 184 a. The appellant shall present evidence and argument not to exceed five 185 minutes. 186 b. Following the appellant, the assessor shall present the borough's evidence 187 and argument not to exceed five minutes. 188 c. The appellant may make a rebuttal presentation directed solely to the 189 issues raised by the assessor not to exceed two minutes. 190 d. The assessor may address the rebuttal by the appellant not to exceed two 191 minutes. 192 Each party shall be allowed a total of five minutes to present evidence and make 193 oral argument. The time limits allotted include presentations from either the 194 appellants or assessor's authorized representatives, counsels, or witnesses. 195 Additional time may be permitted by the board depending on the complexity of the 196 case. The members of the board may ask questions, through the chairperson, of 197 either the appellant or the assessor, authorized representatives, counsels, or 198 witnesses at any time during the hearing. After both the appellant and the 199 assessor have made their presentations, each may question the other through the 200 chairperson. The chairperson may end the questioning and call for a motion from 201 the other members. 202 7. Witnesses, exhibits and other evidence. The appellant and the borough assessor 203 may offer the oral testimony of witnesses and documentary evidence during the 204 hearing; providod, howovor, whoro oithor tho appollant or tho ascoscor cookc to 205 introduco an affidavit in lieu of oral toctimony, cuch affidavit shall bo cubmittod to tho 206 opposing cido no lator than 72 hours boforo tho hoar-ing. AN- toctimony boforo tho board 207 chall bo undor oath. Documontary ovidonco and oxhibits may bo prosontod by both 208 partios during tho hoaring. At the request of the appellant, evidence submitted 209 pursuant to subsection E5 of this section relating to the assessed valuation of 210 property used in an income - producing commercial enterprise shall be 211 confidential. The assessor and the appellant may stipulate to facts to be Kodiak Island Borough Ordinance No. FY2011 - Page 5 of 7 212 presented to the board, provided the assessor has received credible and reliable 213 evidence to establish the facts. 214 The only exhibits that shall be admitted into the record at the hearing are those 215 exhibits provided pursuant to subsection E5 of this section. However, at the 216 hearing, parties may use demonstrative or illustrative exhibits, provided that all 217 such exhibits are duplicates of exhibits or information provided to the board 218 pursuant to subsection E5 of this section. Additionally, witnesses may write on a 219 board while orally testifying to illustrate their testimony. The limitation on the use 220 of exhibits in this section shall not preclude the parties from presenting oral 221 testimony at the hearing. 222 8. Decisions. 223 a. The assessor may recommend changes to the existing value during the 224 hearing. 225 b. After the appellant and assessor have presented their cases, the hearing 226 shall be closed by the chairperson, and no further evidence shall be offered 227 or considered in deliberations unless a member of the board of 228 equalization asks for additional information from either party. Both parties 229 shall be given an equal opportunity to respond to any such requests for 230 additional information. 231 c. The board may decide the appeal after the presentations, or it may defer a 232 decision no later than 30 days after the hearing date. Final board action 233 shall be taken by motions that set out specific findings of fact at the 234 meeting and shall not be reconsidered, amended, or rescinded by the 235 board. Only one motion may be on the floor at a time, and the board shall 236 vote on the motions until its findings are established. The vote must be 237 taken and entered in the permanent record of the proceedings. The 238 motions available for the board are: 239 I. Motion to uphold the assessor's valuation 240 II. Motion to reduce the assessment 241 III. Motion to increase the assessment 242 IV. Motion to dismiss the appeal 243 V. Motion to defer the decision 244 VI. Or any other motion set out in Alaska Statutes and regulations 245 governing board of equalization appeals. 246 d. No later than 30 days following the hearing, the board shall render a written 247 decision which includes findings of fact based on evidence presented at 248 the hearing clearly stating the grounds upon which the panel relied to 249 reach its decision and advising all parties of their right to appeal the 250 decision to superior court. 251 9. Certification. The board shall certify its actions to the assessor within seven days 252 following its adjournment. 253 254 255 Kodiak Island Borough Ordinance No. FY2011 - 12 Page 6 of 7 256 F. Further Appeals. Any appeal of a decision of the board shall be made to the superior 257 court. No appeal of a board's decision to the superior court may be taken unless the action 258 is filed and the borough attorney is served with notice of such appeal within 30 days 259 following the board's decision. 260 261 Section 3: This ordinance shall become effective upon adoption. 262 263 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 264 THIS SEVENTEENTH DAY OF MARCH, 2011 265 266 - KODIAK ISLAND BOROUGH 267 268 Lee 269 270 Jerome M. Selby, Borough Ma 271 272 ATTEST: 273 274 275 I 276 Nova M. Javier, J C, Borough Clerk 277 Kodiak Island Borough Ordinance No. FY2011 -12 Page 7 of 7