Senate Bill 2867

(As Passed the Senate)

AN ACT TO AMEND SECTION 27-35-165, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF THE WORK OF A PRIVATE FIRM WITH WHOM A COUNTY CONTRACTS TO REAPPRAISE PROPERTY OR TO PERFORM APPRAISAL UPDATES IS UNDER THE DIRECTION OF THE COUNTY TAX ASSESSOR, ALL PERSONNEL EMPLOYED OR OTHERWISE ENGAGED BY SUCH PRIVATE FIRM TO APPRAISE PROPERTY SHALL HAVE ATTAINED CERTIFICATION AS AN APPRAISER UNDER THE EDUCATIONAL OR TRAINING PROGRAMS ESTABLISHED BY THE STATE TAX COMMISSION AND SHALL HAVE EXPERTISE IN MASS APPRAISALS AS PRESCRIBED BY THE STATE TAX COMMISSION; TO PROVIDE THAT A PRIVATE CONSULTANT WHO IS ENGAGED TO PERFORM APPRAISAL OF PROPERTY UNDER THE DIRECTION OF THE COUNTY TAX ASSESSOR, SUCH CONSULTANT AND ALL PERSONNEL EMPLOYED OR OTHERWISE ENGAGED BY SUCH CONSULTANT TO APPRAISE PROPERTY, SHALL HAVE ATTAINED CERTIFICATION AS AN APPRAISER UNDER THE EDUCATIONAL OR TRAINING PROGRAMS ESTABLISHED BY THE STATE TAX COMMISSION AND SHALL HAVE EXPERTISE IN MASS APPRAISALS AS PRESCRIBED BY THE STATE TAX COMMISSION; TO PROVIDE THAT IF THE WORK OF A PRIVATE FIRM WITH WHOM A COUNTY CONTRACTS TO REAPPRAISE PROPERTY OR TO PERFORM APPRAISAL UPDATES IS NOT UNDER THE DIRECTION OF THE COUNTY TAX ASSESSOR, ALL PERSONNEL EMPLOYED OR OTHERWISE ENGAGED BY SUCH PRIVATE FIRM TO APPRAISE PROPERTY SHALL BE STATE CERTIFIED REAL ESTATE APPRAISERS WITH EXPERTISE IN MASS APPRAISALS AS PRESCRIBED BY THE STATE TAX COMMISSION; TO PROVIDE THAT A PRIVATE CONSULTANT WHO IS ENGAGED TO PERFORM APPRAISAL OF PROPERTY AND IS NOT UNDER THE DIRECTION OF THE COUNTY TAX ASSESSOR, SUCH CONSULTANT AND ALL PERSONNEL EMPLOYED OR OTHERWISE ENGAGED BY SUCH CONSULTANT TO APPRAISE PROPERTY, SHALL BE STATE CERTIFIED REAL ESTATE APPRAISERS WITH EXPERTISE IN MASS APPRAISALS; TO PROVIDE THAT CONTRACTS ENTERED INTO WITH A PRIVATE FIRM OR PRIVATE CONSULTANT SHALL BE EXECUTED BY THE COUNTY TAX ASSESSOR AND THE BOARD OF SUPERVISORS IF THE WORK PERFORMED UNDER SUCH CONTRACT IS TO BE PERFORMED UNDER THE DIRECTION OF THE COUNTY TAX ASSESSOR; TO AMEND SECTION 27-35-81, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COUNTY TAX ASSESSOR SHALL ONLY BE REQUIRED TO FILE THE ROLLS IF THE ASSESSMENT WAS CONDUCTED BY OR UNDER THE DIRECTION OF SUCH ASSESSOR; TO AMEND SECTION 27-1-23, MISSISSIPPI CODE OF 1972, TO AUTHORIZE EMPLOYEES OF PRIVATE FIRMS THAT CONTRACT WITH THE COUNTY TO PERFORM REAPPRAISALS OR APPRAISAL UPDATES WHO ACTUALLY APPRAISE PROPERTY TO INSPECT PROPERTY; TO AUTHORIZE PRIVATE CONSULTANTS ENGAGED BY THE COUNTY WHO ACTUALLY APPRAISE PROPERTY TO INSPECT PROPERTY; TO AMEND SECTION 27-3-52, MISSISSIPPI CODE OF 1972, TO AUTHORIZE ANYONE TO ATTAIN CERTIFICATION AS AN APPRAISER UNDER THE EDUCATIONAL OR TRAINING PROGRAMS ESTABLISHED BY THE STATE TAX COMMISSION; TO AMEND SECTION 73-34-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE PROVISIONS OF THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION ACT SHALL NOT APPLY TO PRIVATE CONSULTANTS AND EMPLOYEES OF PRIVATE FIRMS AND PRIVATE CONSULTANTS ENGAGED BY THE COUNTY TO PERFORM REAPPRAISALS OR APPRAISAL UPDATES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-35-165, Mississippi Code of 1972, is amended as follows:

27-35-165. (1) No county shall expend funds for the reappraisal of property or for property appraisal updates unless the plans for reappraisal or the contract for reappraisal is in conformity with the then existing rules and regulations of the State Tax Commission and has been approved by the State Tax Commission.

(2) * * * Reappraisals or appraisal updates by a county may be accomplished by:

(a) Contracting with private firms for performance of the work;

(b) Hiring private consultants to perform certain functions of the work * * *; or

(c) Employing, schooling and training county employees to perform all of the work under the supervision of the tax assessor.

(3) (a) All contracts made pursuant to subsection (2)(a) of this section shall require that the contractor furnish a payment and performance bond in an amount not less than one hundred percent (100%) of the contract price, which bond shall be conditioned, in part, to guarantee successful completion of the contract and may be conditioned upon payment of the cost of defense of any suits which may be brought against the county, the board of supervisors or the assessor arising out of such reappraisal for a period of one (1) year after completion thereof.

(b) (i) When work is performed under a contract with a private firm pursuant to subsection (2)(a) of this section and the work is performed under the direction of the county tax assessor, all personnel employed or otherwise engaged by such private firm to appraise property shall be certified under the provisions of Section 27-3-52 with expertise in mass appraisals as prescribed by the State Tax Commission.

(ii) When work is performed under a contract with a private firm pursuant to subsection (2)(a) of this section and the work is not performed under the direction of the county tax assessor, all personnel employed or otherwise engaged by such private firm to appraise property shall be state certified real estate appraisers as defined in Section 73-34-3 with expertise in mass appraisals as prescribed by the State Tax Commission.

(iii) When a private consultant is hired pursuant to subsection (2)(b) of this section to appraise property and the work is performed under the direction of the county tax assessor, the private consultant and all personnel employed or otherwise engaged by such private consultant to appraise property, shall be certified under the provisions of Section 27-3-52.

(iv) When a private consultant is hired pursuant to subsection (2)(b) of this section to appraise property and the work is not performed under the direction of the county tax assessor, the private consultant and all personnel employed or otherwise engaged by such private consultant to appraise property, shall be state certified real estate appraisers as defined in Section 73-34-3 with expertise in mass appraisals as prescribed by the State Tax Commission.

(c) A contract entered into with a private firm or a private consultant pursuant to subsection (2) of this section shall be executed by the county tax assessor and the board of supervisors if the work performed under such contract is to be performed under the direction of the county tax assessor.

(4) Each county engaged in reappraisal of property shall submit such periodic reports to the State Tax Commission as the commission may require. If, at any time, the State Tax Commission determines that the reappraisal or property appraisal update is not in conformity to the approved plan or contract, the commission shall notify the affected board of supervisors of the deficiencies and the board shall take action acceptable to the commission to correct the deficiencies within thirty (30) days or make no further expenditures on the project until the necessary corrective actions are approved by the commission.

(5) Upon payment for any work done on any contract regarding reappraisal or property appraisal update, the work product for which payment is made shall become the property of the county.

SECTION 2. Section 27-35-81, Mississippi Code of 1972, is amended as follows:

27-35-81. (1) If the assessment is conducted by or under the direction of the assessor, the assessor shall complete the assessment of both real and personal property and file the roll or rolls with the clerk of the board of supervisors on or before the first Monday in July of each year. He shall make an affidavit and append it to each roll, showing that he has faithfully endeavored to ascertain and assess all the persons and property in his county, that he has not omitted any person or thing, or placed upon, or accepted an undervaluation of any property, through fear, favor or partiality, and that he has required every taxpayer to make the oath required to be taken by the person rendering a list of his taxable property wherever possible. The assessor shall file with the roll or rolls, under oath, a list showing the name of every taxpayer who has failed or refused to make oath to his tax lists.

(2) If the * * * roll or rolls are not filed as required by this section on or before the first Monday in July of each year, the board of supervisors at its July meeting shall adopt an order showing the failure of the * * * roll or rolls to be filed and shall certify to the State Tax Commission a statement showing such failure and the time necessary * * * to complete the roll or rolls.

(3) Upon receipt of such certificate from the board of supervisors of any county, the State Tax Commission shall, by order entered on its minutes, provide when such roll shall be completed and filed, and the date when the board of supervisors shall meet to equalize the roll or rolls, and the time when objections to the assessments contained in such roll or rolls, shall be heard by the board of supervisors, provided that not less than ten days' notice shall be given prior to the hearing of such objections. When such roll or rolls, shall be filed, they shall be dealt with in all respects as now provided by law except as to the time.

SECTION 3. Section 27-1-23, Mississippi Code of 1972, is amended as follows:

27-1-23. (1) The county and municipal tax assessor in person, or by deputy, shall have the right, power and authority and it shall be his duty to require of any property owner an inspection of his books and accounts, papers, memoranda and records, and he shall have the right to examine in full the same, and may from his books and accounts make an estimate of the value of all property to be assessed. Such assessors shall also, if in their opinion it be necessary, put upon oath the owner, agent or employees of the owner, and propound to him or them, such questions as will elicit from him, or them, the actual cash value of any property subject to assessment. Such assessors shall have the right and power to inquire into and ascertain the insured value of any and all property, or into the value at which the same has been insured previously and to ascertain the amount of fire insurance carried on any and all property which shall include fire insurance carried on stocks of merchandise, or goods kept for use or sale, machinery, fixtures or other property, and in fixing the value of property for assessment the amount of fire insurance carried and the value of the property as shown by the books and accounts of the owner shall be taken into consideration. If such assessors are advised or have reason to believe that the list of taxable property furnished by any person is incomplete or incorrect, or if any property has been undervalued, they shall assess the same and add it to the assessment roll at its true value.

(2) In the performance of the duties and in the exercise of the powers herein vested in and imposed upon the tax assessor, such assessors and their deputies shall have the authority to enter, during reasonable hours, the premises or places of business of any person other than a house, used as a place of residence.

(3) In the performance of a contract entered into pursuant to Section 27-35-165(2)(a), the employees of private firms who actually appraise property shall have the authority to enter, during reasonable hours, the premises or places of business of any person other than a house, used as a place of residence.

(4) Private consultants hired pursuant to Section 27-35-165(2)(b) who actually appraise property shall have the authority to enter, during reasonable hours, the premises or places of business of any person other than a house, used as a place of residence.

SECTION 4. Section 27-3-52, Mississippi Code of 1972, is amended as follows:

27-3-52. (1) The State Tax Commission shall promulgate rules and regulations setting forth the minimum requirements for which tax assessors and/or their deputy assessors or assistants,appropriate state employees, employees of planning and development districts or other persons may attain certification as an appraiser. The commission shall establish and conduct such educational and training programs as may be appropriate to assist such persons in attaining such certification.

Counties having not more than five thousand (5,000) applicants for homestead exemption shall have at least one (1) certified appraiser, and counties having more than five thousand (5,000) applicants for homestead exemption shall have at least two (2) certified appraisers; however, any county may employ any certified appraiser on a part-time basis.

(2) When any tax assessor and/or his deputies or assistants travel outside of their county to attend an appraisal school, seminar or workshop approved by the State Tax Commission, such persons shall receive as reimbursement of expenses of such travel the same mileage and actual and necessary expenses for food, lodging and travel by public carrier or private motor vehicles as is allowed under Section 25-3-41. However, mileage shall not be authorized when such travel is done by a motor vehicle owned by the county.

The county board of supervisors shall reimburse the assessors, tax collectors and deputies for reasonable and necessary expenses sustained in attending annual conferences, regional conferences, schools and seminars. The State Tax Commission shall have the authority to prescribe forms and to promulgate rules and regulations necessary to implement the provisions of this section. No expenses authorized herein shall be reimbursed unless the expenses have been authorized or approved by an order of the board duly made and spread upon the minutes of such board.

(3) When any tax assessor and/or his deputies or assistants attend and successfully complete all qualifications pursuant to the Mississippi Education and Certification Program and receive the certification level of Track II, Evaluator I, they shall receive an additional One Thousand Dollars ($1,000.00) annually beginning the next fiscal year after completion.

When any tax assessor and/or his deputies or assistants attend and successfully complete all qualifications pursuant to the Mississippi Education and Certification Program and receive the certification level of Track II, Evaluator II, they shall receive an additional One Thousand Dollars ($1,000.00) annually beginning the next fiscal year after completion.

When any tax assessor and/or his deputies or assistants attend and successfully complete all qualifications pursuant to the Mississippi Education and Certification Program and receive the certification level of Mississippi Assessment Evaluator (MAE), they shall receive an additional One Thousand Five Hundred Dollars ($1,500.00) annually beginning the next fiscal year after completion.

When any deputy tax assessor successfully completes all qualifications to become a licensed certified residential real estate appraiser under Sections 73-34-1 through 73-34-63, on the recommendation of the tax assessor, the county board of supervisors may pay, in its discretion, an additional amount not to exceed Three Thousand Dollars ($3,000.00) annually to the deputy beginning the next fiscal year after the completion of such qualifications.

When any deputy tax assessor successfully completes all qualifications to become a licensed certified general real estate appraiser under Sections 73-34-1 through 73-34-63, on the recommendation of the tax assessor, the county board of supervisors may pay, in its discretion, an additional amount not to exceed Five Thousand Dollars ($5,000.00) annually to the deputy beginning the next fiscal year after the completion of such qualifications.

The accumulative total of all educational increases authorized under this subsection shall not exceed Eight Thousand Five Hundred Dollars ($8,500.00) and shall be paid out of the common county fund from proceeds of the one (1) mill ad valorem tax as provided in Section 27-39-329.

In order to receive the additional annual payment or payments provided for in this subsection, the tax assessor or deputies or assistants who completed the Mississippi Education and Certification Program and were certified as provided herein shall be personally involved in the conduct, administration and/or supervision of the appraisal of the property of the county and in the maintenance of such appraisal.

SECTION 5. Section 73-34-5, Mississippi Code of 1972, is amended as follows:

73-34-5. (1) Except as otherwise provided for in this section, it shall be unlawful for anyone to engage in real estate appraisal activity in this state without first obtaining one (1) of the four (4) real estate appraiser licenses as provided in this chapter.

(a) Any person who is engaged in real estate appraisal activity on July 1, 1990, shall continue through June 30, 1991, to be subject to the provisions of the Real Estate Brokers License Law of 1954, but, thereafter, all real estate appraisal activity shall be governed by and licensed pursuant to the provisions of this chapter. However, if the United States Congress or the Appraisal Subcommittee of the Federal Financial Institutions Examination Council extends the effective date for the use of certified or licensed appraisers in federally related transactions, then the above date of June 30, 1991, shall be extended to the date immediately preceding such extended effective date. In addition, if such appraisal subcommittee waives any requirement relating to certification or licensing of persons to perform appraisals in Mississippi, then such waiver shall also be effective in Mississippi under the Real Estate Appraiser Licensing and Certification Act and such requirement shall be waived by the Real Estate Appraiser Licensing and Certification Board until the waiver is terminated by the appraisal subcommittee. The Mississippi Real Estate Appraiser Licensing and Certification Board shall waive or modify statutory minimum requirements for hours of courses of study and provide by regulation for applicants who desire to do so to challenge the examinations, or one or some of them, by taking an examination on such courses without actually taking such courses, if such waivers or modifications are allowed or allowable under law or regulations adopted and promulgated by the United States Congress or the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.

(b) The provisions of this chapter shall not apply to any director, officer or salaried employee of commercial banks, savings banks, credit unions, and savings and loan associations, when engaged in appraisal or evaluation activities for and on behalf of such financial institution unless there is a fee charged for the appraisal or evaluation; provided that a federal statute, rule or regulation does not require such appraisal or evaluation activities to be performed by a state licensed appraiser.

(c) This section shall not be construed to apply to individuals who do not render significant professional assistance in arriving at a real estate appraisal analysis, opinion or conclusion. Examples of the type of assistance which are not considered "significant professional assistance" under this section include the following: (i) assistance in obtaining the data upon which the appraisal is based; (ii) assistance in the physical preparation of the appraisal report (such as taking photographs, preparing charts, maps or graphs, or typing or printing the report); and (iii) any other assistance that does not directly involve the exercise of judgment in arriving at the analysis, opinions or conclusions concerning real estate or real property set forth in the appraisal report.

(2) This chapter shall not apply to a real estate broker or salesperson licensed by this state who, in the ordinary course of his business, gives an opinion as to the price of real estate for the purpose of a prospective listing or sale; provided, however, that this opinion as to the listing price or the sale price shall not be referred to as an appraisal and provided, further, that no compensation, fee or other consideration is charged for such opinion other than the real estate commission or brokerage fee that is charged or paid for brokerage services rendered in connection with the sale of the real property involved.

(3) The provisions of this chapter shall not apply to:

(a) Any state, county, or municipal public officers or their salaried employees while performing their duties as such;

(b) The employees of private firms engaged pursuant to Section 27-35-165(2)(a) who perform work under the direction of the county tax assessor; or

(c) Private consultants hired pursuant to Section 27-35-165(2)(b) and all personnel employed or otherwise engaged by private consultants to appraise property who perform work under the direction of the county tax assessor.

(4) No license shall be issued under the provisions of this chapter to a corporation, partnership, firm or group.

(5) The provisions of this chapter shall not apply to individuals performing timber cruises, valuation on timberland real estate appraisals for nonfederally related transactions.

SECTION 6. This act shall take effect and be in force from and after October 1, 2003.