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Senate narrowly approves bill letting counties hire private appraisers but bars contingency fees
Summary
After extended floor debate, the Senate passed a second-substitute bill (SB62) that lets counties and the state tax commission use private-sector appraisers for valuations but prohibits paying those appraisers on a contingency-fee basis; supporters said the ban prevents perverse incentives, opponents argued it limits local flexibility and could disadvantage rural counties.
The Senate on the floor debated whether counties should be allowed to use private appraisers to establish property values and, if so, whether those appraisers may be paid on a contingency-fee basis.
Senator Howard Stevenson introduced the second substitute of Senate Bill 62, saying the measure ‘‘enables counties and the tax commission to use private sector people to handle the appraisal process’’ but prohibits contingency-fee payments for appraisers who establish taxable value. Stevenson told colleagues the prohibition was designed to remove incentives that could inflate assessed values.
Opponents on the floor said the change could be unfair to local governments and rural counties that lack appraisal capacity. Senator Blackham and others urged that the related bill by Senator Demetri (the first substitute) be brought forward as well so the chamber could consider both approaches, and critics warned the prohibition could constrain county options for recruiting scarce expertise.
Supporters, including some county assessors cited by the bill sponsor, described contingency arrangements as ‘‘unethical’’ in appraisal practice and said disclosure rules would not cure the incentive problem. Senators debated whether taxpayers themselves would be prevented from contracting contingency-fee advisers to pursue reductions; the sponsor repeatedly said the bill does not limit a private homeowner’s ability to hire a processor on contingency.
After extended debate and a call of the Senate, the second substitute was put to a roll call and recorded as passing with more yeas than nays. The measure moves to the House for further action.
Votes and next steps: the floor transcript records the roll call result for the second substitute showing 16 ayes, 12 nays, and 1 absence; Senate clerks will transmit the bill and vote record to the House.
