How does an appraisal firm get approved to do mass appraisal work for a Kansas county?

Plain-English summary

Kansas counties do not have to do all their own property appraisal work. Under K.S.A. 79-1478, as the directive explains, counties may "contract with private appraisal firms to conduct the reappraisal of property or perform technical tasks to assist the county appraiser in the completion of annual appraisal maintenance work." Firms "may be organized as corporations, partnerships, limited liability companies, or individual contractors."

But the county does not get a free hand in choosing. Selection "must be made from a list of approved firms supplied by the director of property valuation," and a firm "must meet minimum experience qualifications and possess technical skills to be placed on the director's approved vendor list before a contract can be approved for the county."

So the sequence runs: get approved, then get hired. And usefully for firms considering the Kansas market, the two steps are decoupled -- "a pending contract with a Kansas county is not required to be placed on the approved list of private appraisal firms." You can apply cold.

Getting on the list. The firm applies "in writing to the director of property valuation," with a request that "must include sufficient experience and background documentation, and fully describe the professional services or technical assistance that the firm is prepared to offer."

The experience bar is quantified: at least "five (5) years of mass appraisal experience in the valuation of real property for ad valorem taxation," documented with a short description of all mass appraisal project work over the last five years -- including "jurisdiction name and description of the scope of work performed" and a "summary of results, work products delivered and performance evaluation outcomes" -- plus "names of references / phone numbers / e-mail contacts."

Personnel documentation matters as much as firm history: résumés "with experience qualifications for all appraisal personnel who will be assigned to perform work for a Kansas county," and a list of the Kansas computer assisted mass appraisal system (Orion) "courses and workshops successfully completed" by that personnel.

The decision. The firm "shall be notified within thirty (30) business days," and "if approval is not granted the director of property valuation will provide reasons for the rejection."

Staying on the list. Approval is not permanent. All appraisal work must comply with USPAP "Standards 5 and 6, whichever is applicable," along with relevant statutes, directives, rules, guides and appraisal maintenance specifications. Before work starts, firm employees "shall successfully complete all relevant technical and computer assisted mass appraisal system (Orion) training courses and workshops provided by the division of property valuation."

The scope of what a firm may do can move in either direction. A firm may ask to expand it "as qualifications are updated through the addition of experienced personnel or by successful completion of required workshops and course work." And the director "reserves the right to revise the scope of contract work that a firm may be eligible to perform due to performance evaluation outcomes or personnel changes within the firm."

The contract itself has nine required specifications, several of which are unusually pointed. The contract must "specify that it is a breach if the firm fails to comply with relevant Kansas statutes, administrative regulations, standards, guidelines, directives and instruction manuals," must "specifically allow the county appraiser and the property valuation division to review work performed by the firm," must "name employees of the firm assigned to perform work for the county," and must "specify that time is of the essence and failure to meet deadlines required by Kansas statutes, regulations, specifications, directives or guidelines constitutes a material breach of contract."

What this means for you

Appraisal firms wanting Kansas county work

Apply to the director before chasing contracts, because a county legally cannot select you off-list. Build the application around the five-year documentation requirement: project-by-project scope, results, work products, and -- notably -- "performance evaluation outcomes," which means your past evaluations are part of the record you are asked to disclose.

Budget for Orion training as a cost of entry. It is required before work commences, not after award, and the training completed by your assigned personnel is part of what the director evaluates.

Firms already on the list

Watch the two-way scope provision. Adding qualified personnel or completing coursework is the route to expanding what you can bid on. But performance evaluation outcomes and personnel departures can narrow your eligible scope at the director's initiative -- losing key staff is a compliance event, not just an HR one.

County appraisers and county procurement staff

You must select from the director's list, contracts "shall meet the specifications of the director of property valuation," and the director "may require submission of the executed contract." The nine contract specifications are effectively mandatory terms; a contract missing the review-access clause, the named-employees clause, or the time-is-of-the-essence clause does not conform.

Pay attention to specification 6, which exists for your protection: the contract must require work product documentation "to allow the county to adequately represent its position at hearings and before the court of tax appeals." If a vendor's work cannot be defended on appeal, the county carries that loss.

Property owners and tax professionals

This is a procurement directive, so it does not change how your property is valued. It is still worth knowing for one reason: if your county's values were produced by a contracted firm, that firm's work was supposed to comply with USPAP Standards 5 and 6 and with the Division's appraisal maintenance specifications, and the county was supposed to have documentation adequate to defend it at a hearing. That is a fair line of inquiry in an appeal.

Common questions

Q: Can a Kansas county hire any appraisal firm it likes?
A: No. Selection "must be made from a list of approved firms supplied by the director of property valuation."

Q: Do I need a county contract lined up before applying?
A: No. "A pending contract with a Kansas county is not required to be placed on the approved list of private appraisal firms."

Q: How much experience is required?
A: At least "five (5) years of mass appraisal experience in the valuation of real property for ad valorem taxation," documented for the last five years of project work.

Q: How long does approval take?
A: The firm "shall be notified within thirty (30) business days" whether the request was granted, with reasons provided if it was not.

Q: What business forms are eligible?
A: "Corporations, partnerships, limited liability companies, or individual contractors."

Q: Which appraisal standards apply?
A: USPAP "Standards 5 and 6, whichever is applicable," plus relevant statutes, directives, administrative rules, guides and appraisal maintenance specifications. Check the current USPAP edition -- the directive dates from 2019.

Q: Does my staff need Kansas-specific training?
A: Yes, and before work begins. Assigned employees "shall successfully complete all relevant technical and computer assisted mass appraisal system (Orion) training courses and workshops provided by the division of property valuation."

Q: Can my approved scope of work change?
A: In both directions. A firm may request an expansion as qualifications improve, and the director may revise a firm's eligible scope "due to performance evaluation outcomes or personnel changes within the firm."

Q: What happens if we miss a deadline on a county contract?
A: The required contract terms make it serious: the contract must specify "that time is of the essence and failure to meet deadlines required by Kansas statutes, regulations, specifications, directives or guidelines constitutes a material breach of contract."

Citations and references

Authority for the directive: K.S.A. 79-505(a). Effective, per the directive, "for the 2020 valuation year and all subsequent valuation years."

Contracting authority: K.S.A. 79-1478 -- counties may contract with private appraisal firms for reappraisal and to assist with annual appraisal maintenance work.

Professional standards referenced: Uniform Standards of Professional Appraisal Practice (USPAP), Standards 5 and 6, "whichever is applicable" (as in force when the directive was issued in 2019).

Training resource named in the directive: the annual PVD Education catalog, printed in the directive at www.ksrevenue.org/pvdeducation.html (the Department's former domain).

Other Division materials incorporated: the Appraisal Maintenance Specifications issued by the division of property valuation.

Directive superseded by this one: #12-045.

Source

• Landing page: Kansas Property Tax Directives
• Original PDF: PVD Directive 19-045

Original ruling text

Division of Property Valuation
300 SW 29th Street Phone: 785-296-2365
PO Box 3506 Fax: 785-296-2320
Topeka KS 66601-3506 www.ksrevenue.gov
Mark Burghart, Secretary Laura Kelly, Governor

                                   DIRECTIVE #19-045

TO:              County Appraisers Private Mass Appraisal Firms

SUBJECT:         Private Appraisal Firm Requirements
                 This Directive Supersedes Directive #12-045

This directive is adopted pursuant to the provisions of K.S.A. 79-505(a), and shall be in force and effect
from and after the Director's approval date for the 2020 valuation year and all subsequent valuation years.

1. K.S.A 79-1478 authorizes counties to contract with private appraisal firms to conduct the
   reappraisal of property or perform technical tasks to assist the county appraiser in the completion of
   annual appraisal maintenance work. Private appraisal firms may be organized as corporations,
   partnerships, limited liability companies, or individual contractors. Selection of a private firm whose
   services are necessary to perform appraisal assignments, develop components of a mass appraisal,
   provide technical appraisal services, or complete project maintenance phases must be made from a
   list of approved firms supplied by the director of property valuation.

2. The private appraisal firm must meet minimum experience qualifications and possess technical
   skills to be placed on the director’s approved vendor list before a contract can be approved for the
   county. Contracts between the county and private appraisal firms shall meet the specifications of the
   director of property valuation. The contracted scope of work for any county phase of ad valorem
   appraisal shall comply with relevant specifications, guidelines, administrative rules and regulations,
   statutes, directives and appraisal industry standards.

3. The firm shall submit an application request in writing to the director of property valuation to be
   added to the approved list of private appraisal firms. The request must include sufficient experience
   and background documentation, and fully describe the professional services or technical assistance
   that the firm is prepared to offer to perform appraisal assignments, develop components of a mass
   appraisal, or complete appraisal maintenance phases. A pending contract with a Kansas county is
   not required to be placed on the approved list of private appraisal firms.

4. The firm shall be notified within thirty (30) business days if the request to be added to the director’s
   approved list of private appraisal firms has been granted. If approval is not granted the director of
   property valuation will provide reasons for the rejection.

5. Once a firm has been placed upon the approved list, the scope of professional services or technical
   assistance offered may be revised, by request of the firm, as qualifications are updated through the
   addition of experienced personnel or by successful completion of required workshops and course
   work. The director reserves the right to revise the scope of contract work that a firm may be eligible
   to perform due to performance evaluation outcomes or personnel changes within the firm.

Page 2

Minimum Experience Qualification and Background Information Required for Private Appraisal
Firms:

1. The firm must submit a request with sufficient documentation to be added to the approved list of
   private appraisal firms in writing to the director of property valuation. A pending contract with a
   Kansas county is not required to be placed on the approved list of private appraisal firms.

2. The firm must document at least five (5) years of mass appraisal experience in the valuation of real
   property for ad valorem taxation. Please submit the following information:

      a. A short description of all past mass appraisal project work completed over the last 5
         years. Please include the following information:
   
                 • Jurisdiction name and description of the scope of work performed.
   
                 • Summary of results, work products delivered and performance evaluation
                   outcomes.
   
      b. Names of references / phone numbers / e-mail contacts
   

3. Provide background documentation on the firm’s personnel. Please submit the following
   information:

      a. Resumes with experience qualifications for all appraisal personnel who will be assigned
         to perform work for a Kansas county.
   
      b. A list of all Kansas computer assisted mass appraisal system (Orion) courses and
         workshops successfully completed by personnel in the firm who will be assigned to
         perform work for a Kansas county.
   

4. The firm shall be notified within thirty (30) business days if the request to be added to the
   director’s approved list of private appraisal firms has been granted. If approval is not granted the
   director of property valuation will provide reasons for the rejection.

Requirements for Retention on the Director’s Approved Vendor’s List:

1. All appraisal work shall be performed in compliance with the Uniform Standards of Professional
   Appraisal Practice (USPAP), Standards 5 and 6, whichever is applicable, in addition to relevant
   statutes, directives, administrative rules, guides and appraisal maintenance specifications.

2. Prior to the commencement of mass appraisal work, employees of the firm assigned to assist a
   Kansas county shall successfully complete all relevant technical and computer assisted mass
   appraisal system (Orion) training courses and workshops provided by the division of property
   valuation. See the annual PVD Education catalog available at:
   www.ksrevenue.org/pvdeducation.html for a list of training required to responsibly manage, assist
   with, or perform specific technical tasks, and achieve proficiency with methods and techniques
   required to develop a credible mass appraisal.

3. The director of property valuation may require submission of the executed contract.

Page 3

Required Contract Specifications:

1. The contract shall employ terms that comply with relevant Kansas statutes, administrative
   regulations, standards, guidelines, directives and instruction manuals.

2. The contract shall specify that it is a breach if the firm fails to comply with relevant Kansas
   statutes, administrative regulations, standards, guidelines, directives and instruction manuals.

3. The contract specifications shall provide adequate detail to delineate the responsibilities and
   duties that will be performed for each contracted assignment, technical task or project phase.

4. Scope of work must comply with the relevant sections of the Appraisal Maintenance
   Specifications issued by the division of property valuation.

5. The contract shall require sufficient documentation to be provided by the firm on a monthly basis
   to enable the county to monitor and report progress to the property valuation division.

6. The contract shall require work product documentation to be provided by the firm to allow the
   county to adequately represent its position at hearings and before the court of tax appeals.

7. The contract shall specifically allow the county appraiser and the property valuation division to
   review work performed by the firm.

8. The contract shall name employees of the firm assigned to perform work for the county and the
   contract shall require such employees to meet the technical qualifications and comply with
   computer assisted mass appraisal system training required by the division of property valuation.

9. The contract shall specify that time is of the essence and failure to meet deadlines required by
   Kansas statutes, regulations, specifications, directives or guidelines constitutes a material breach
   of contract.

Approved: July 10, 2019
David N. Harper
Director of Property Valuation