37-282.01. Mass appraisals; notice; procedure; definitions

A. Before undertaking a mass appraisal pursuant to section 37-132, subsection A, paragraph 5, the commissioner shall:

1. Notify in writing all lessees, permittees and right-of-way grantees currently occupying state land for the use to which the mass appraisal would apply and solicit comments from the affected parties and any valuation information, including comparables, that the affected parties might voluntarily provide.

2. Notify in writing known industry, trade and professional organizations that typically represent occupants of state lands for the use to which the mass appraisal would apply and solicit comments from the organizations and any valuation information, including comparables, that the organizations might voluntarily provide.

3. Provide the affected parties and organizations ninety days to submit written comments and valuation information, including comparable data.

B. Valuation information, including comparable data, submitted to the department pursuant to subsection A of this section must include information typically used for valuation purposes.  The commissioner shall consider all valuation information, including comparable data.

C. Industry, trade and professional organizations that do not receive notice pursuant to subsection A, paragraph 2 of this section and that wish to provide comments and valuation information, including comparable data, have ninety days from the date of the notice provided in subsection A of this section to identify themselves in writing to the department and provide comments and valuation information, including comparable data.

D. The commissioner shall base mass appraisals on valuation information including comparables that are consistent with the market for that land use in this state, to the extent that adequate valuation information, including comparable data, is available.  The commissioner shall consider whether there are different markets for that land use within different areas of the state, including urban, suburban and rural, and require that these different markets are appropriately addressed in the mass appraisal.

E. In using valuation information, including comparable data, on lands in preparing a mass appraisal, the commissioner shall take into account, if applicable, the specific terms and conditions of leases, permits and right-of-way grants affecting the lands, including:

1. Any costs incurred by the occupier of the land to prepare the land for use, including acquisition of rights-of-way for access to the land and extension of utility services necessary to use the land.

2. Whether the occupier of the land may subsequently sublease, permit or license the land or improvements on the land to obtain third-party revenue and the extent to which the improvement being sublet, permitted or licensed is leased, permitted or licensed to the occupier of the land.

F. At least sixty days before the commissioner submits a mass appraisal to the board of appeals for approval, rejection or modification, the commissioner shall notify in writing all parties who were notified or provided comments and valuation information pursuant to subsection A or C of this section and shall make available on the department's website a copy of the mass appraisal to be acted on by the board of appeals.  The commissioner shall provide a hard copy of the mass appraisal to any person who requests it pursuant to section 37-102, subsection F.  The notice shall advise the recipients of their right to appear before the board of appeals regarding the mass appraisal.

G. The commissioner shall adjust the mass appraisal at any time if the commissioner determines that significant changes in market conditions or technology have occurred or that other changed conditions would materially affect the valuation of land uses subject to the mass appraisal.  Before modifying a mass appraisal, the commissioner shall give written notice to holders of leases, permits and right-of-way grants affected by the mass appraisal and to the persons identified in subsection A of this section.  The commissioner shall reappraise any mass appraisal that has not been adjusted in a ten-year period.

H. For the purposes of this section:

1. "Comparables" means similar transactions, within a relevant time period, between unrelated parties involving similar uses of similar property in which none of the differences, if any, between the transactions could materially affect the valuation or in which reasonably accurate adjustments may be made to eliminate the effect of the differences.

2. "Mass appraisal" means an appraisal that the commissioner proposes to use to set rental or fees for multiple applications from multiple persons for a specific use of state lands by lease, permit or right-of-way grant.  Multiple applications for similar land uses in a defined geographic region that are appraised by a single appraiser shall not be considered a mass appraisal.