Administrative Rule Review Report  #AR08-030

Legislative Service Office

03-Apr-08

AGENCY: Department of Revenue.

DATE SUBMITTED: April 3, 2008.

SUBJECT: Chapter 7, Property Tax Valuation Methodology and Assessment; Chapter 13, Assessor and Property Tax Appraiser Education and Certification; and Chapter 14, Property Tax Exemption Standards.

NATURE OF RULES:                     Legislative, procedural

STATUTORY AUTHORITY:         W.S. 39-11-102(b)

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION

SUBMITTED BY THE AGENCY TO LSO:  Apparently complete to date.  Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28-9-103(d) on January 24, 2008.  No comments have been received to date.

SUMMARY OF RULES:       Chapter 7 of the rules deals with the valuation and assessment of property taxes.  The rules in chapter 7 are amended to specify that the Property Tax Division of the Department of Revenue will be responsible for the appraisal and assessment of property taxes rather than the Ad Valorem Tax Division, State Assessment Section.  The rules are amended to specify that they apply to the assessment of telecommunications properties.  The rules as amended will require each taxpayer to annually report on Division appraised and assessed properties.  The rules specify that cable and satellite television are included within telecommunication.  The rules include certain publications as recognized published financial sources for the purpose of analyzing data by industry type.  The rules provide that intangible assets will be removed from the fair market value under certain circumstances as provided in chapter 14 of the rules.  The rules specify that certain property shall have a taxable value of nine and one-half percent rather than eleven and one-half percent.  The rules are also amended to make additional technical corrections throughout.

Chapter 13 of the rules provides for the education and certification of property tax appraisers.  The rules are amended to remove the ability of a person to obtain designation as an assessment specialist.  The rules are amended to specify that the Ad Valorem Tax Division is now known as the Property Tax Division.  The rules state that the term "in-service" includes programs for the benefit of persons employed by the state of Wyoming.  The rules specify that the list of educational and training programs shall be developed in consultation with the President of the Wyoming Assessors Association.  The rules specify the process of approval of courses not on the accredited program list and provide that failure to provide documentation in advance will deny approval of the coursework and hours attended.  The amount of hours for the development, revision or instruction of courses is increased to 2 times the approved credit hours of the course.  The rules amend the certification process and specify certain classes that must be taken for continuing education.  The rules are amended to provide for half credit of continuing education courses that are failed if the student holds a permanent certification.  The rules specify that a lapse of permanent certification of greater than 5 years can be regained with a passing grade on 56 hours of accredited education programs and the "Standards and Ethics" national 15 hour course.  The rules provide certain courses which qualify for permanent certification.  The rules are also amended to make additional technical corrections throughout.

Chapter 14 deals with property tax exemptions.  Chapter 14 is amended to provide an exemption for intangibles.  "Intangible personal property" means personal property that lacks mass and cannot be seen, felt, weighed, measured or otherwise perceived by the senses; property that has no physical existence beyond merely representational.  The rules provide that "intangible personal property" is exempt provided that the taxpayer can provide certain documentation.

FINDINGS:  The rules appear to be within the scope of statutory authority and legislative intent.

STAFF RECOMMENDATION:  That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.

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Joshua Anderson

Research Associate

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David K. Gruver

Assistant Director

JDA/