42-12052

42-12052. Review and verification of class
three property; notice to owner; civil penalty; appeals

A. Each county assessor shall review assessment information, on a continuing basis,
to ensure proper classification of residential dwellings. The assessor may enter into
intergovernmental agreements with the department for an exchange of information to ensure
a coordinated and comprehensive review and identification of property that may be rented
while classified as class three pursuant to section 42-12003.

B. If the assessor has reason to believe that a parcel of property that is
classified as class three pursuant to section 42-12003 is being rented, the assessor
shall notify the owner, in a form prescribed by the department as provided by subsection
H of this section, and request that the owner respond as to whether the property is
occupied by the owner or is used as a rental property. If the owner fails to respond to
the assessor within thirty days after the notice is mailed, the assessor shall mail the
owner a final notice requesting that the owner provide information as to whether or not
the property is occupied by the owner or used as a rental property.

C. If the owner fails to respond to the assessor within fifteen days after the
final notice is mailed, the assessor shall:

1. Reclassify the property as class four.

2. Notify the county treasurer who shall assess a civil penalty against the
property equal to twice the amount of the property taxes that would have been levied
against the property if the property had been classified as class four pursuant to
section 42-12004 in the preceding tax year.

D. The owner of the property shall pay a penalty under subsection C, paragraph 2 of
this section to the county treasurer within thirty days after the notice of the penalty
is mailed.

E. The owner may appeal the penalty to the county board of supervisors within the
time required for payment. If the owner proves to the board's satisfaction that the
property is occupied by the owner, the board shall waive the penalty, and the property
shall be listed as class three pursuant to section 42-12003. Until paid or waived, the
penalty constitutes a lien against the property.

F. In addition to other appeal procedures provided by law, the owner of property
that is reclassified as class four under subsection C, paragraph 1 of this section may
appeal the reclassification to the county board of supervisors within thirty days after
the notice of classification is mailed. If the owner proves to the board's satisfaction
that the owner occupies the property, the board shall order the property to be
reclassified as class three property pursuant to section 42-12003.

G. The county treasurer shall deposit all revenue received from penalties assessed
under this section in the county general fund.

H. The department shall:

1. Prescribe all forms used to notify property owners under this section. The
forms shall contain information as to criteria for the reclassification of property and
the civil penalties that may result if the owner fails to respond to the notice.

2. Monitor and review the procedures and practices used by assessors and treasurers
to accomplish the review and verification of class three property and the assessment and
collection of penalties prescribed by this section and propose suggested improvements to
establish uniform processes and performance among the counties.