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Senate File 2291

Partial Bill History

Bill Text

PAG LIN
  1  1                                             SENATE FILE 2291
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO LOCAL GOVERNMENT AUTHORITY TO ENCOURAGE DEVELOP-
  1  5    MENT AND REHABILITATION OF CERTAIN REAL PROPERTY AND
  1  6    INCLUDING EFFECTIVE DATE AND APPLICABILITY DATE PROVISIONS.
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 404.2, subsection 2, paragraph h,
  1 11 unnumbered paragraph 1, Code 2003, is amended to read as
  1 12 follows:
  1 13    Any tax exemption schedule authorized in section 404.3,
  1 14 subsection 4A, that shall be used in lieu of the schedule set
  1 15 out in section 404.3, subsection 1, 2, 3 or 4.  This schedule
  1 16 shall not allow a greater exemption, but may allow a smaller
  1 17 exemption, than allowed in the schedule specified in the
  1 18 corresponding subsection of section 404.3.
  1 19    Sec. 2.  Section 404.3, Code 2003, is amended by adding the
  1 20 following new subsection:
  1 21    NEW SUBSECTION.  4A.  A city or county may adopt a
  1 22 different tax exemption schedule than those allowed in
  1 23 subsection 1, 2, 3, or 4.  The different schedule adopted
  1 24 shall not allow a greater exemption, but may allow a smaller
  1 25 exemption, in a particular year, than allowed in the schedule
  1 26 specified in the corresponding subsection of this section.  A
  1 27 different schedule adopted by a city or county shall apply to
  1 28 every revitalization area within the city or county, unless
  1 29 the qualified property is eligible for an exemption pursuant
  1 30 to section 404.3A or 404.3B, and except in areas of the city
  1 31 or county which have been designated as both urban renewal and
  1 32 urban revitalization areas.  In an area designated for both
  1 33 urban renewal and urban revitalization, a city or county may
  1 34 adopt a different schedule than has been adopted for
  1 35 revitalization areas which have not been designated as urban
  2  1 renewal areas.
  2  2    Sec. 3.  Section 404.3, subsections 5 and 6, Code 2003, are
  2  3 amended to read as follows:
  2  4    5.  The owners of qualified real estate eligible for the
  2  5 exemption provided in this section or section 404.3A or 404.3B
  2  6 shall elect to take the applicable exemption provided in
  2  7 subsection 1, 2, 3 or 4 or shall elect to take the applicable
  2  8 exemption provided in the different schedule authorized by
  2  9 subsection 4A and adopted in the city or county plan if a
  2 10 different schedule has been adopted.  Once the election has
  2 11 been made and the exemption granted, the owner is not
  2 12 permitted to change the method of exemption.
  2 13    6.  The tax exemption schedule specified in subsection 1,
  2 14 2, 3 or 4 shall apply to every revitalization area within a
  2 15 city or county unless a different schedule is adopted in the
  2 16 city or county plan as provided in section 404.2 and
  2 17 authorized by subsection 4A.  However, a city or county shall
  2 18 not adopt a different schedule unless every revitalization
  2 19 area within the city or county has the same schedule applied
  2 20 to it, except in areas of the city or county which have been
  2 21 designated as both urban renewal and urban revitalization
  2 22 areas.  In an area designated for both urban renewal and urban
  2 23 revitalization, a city or county may adopt a different
  2 24 schedule than has been adopted for revitalization areas which
  2 25 have not been designated as urban renewal areas.  The
  2 26 different schedule adopted shall not provide for a larger tax
  2 27 exemption in a particular year than is provided for that year
  2 28 in the schedule specified in the corresponding subsection of
  2 29 this section.
  2 30    Sec. 4.  NEW SECTION.  404.3B  ABANDONED REAL PROPERTY
  2 31 EXEMPTION.
  2 32    1.  Notwithstanding the schedules provided for in section
  2 33 404.3, a city or county may provide that all qualified real
  2 34 estate that meets the definition of abandoned as stated in
  2 35 section 657A.1 is eligible to receive an exemption from
  3  1 taxation based on the schedule set forth in subsection 2 or 3.
  3  2    2.  All qualified real estate described in subsection 1 is
  3  3 eligible to receive a partial exemption from taxation on the
  3  4 actual value added by the improvements.  The exemption is for
  3  5 a period of fifteen years.  The amount of the partial
  3  6 exemption is equal to a percent of the actual value added by
  3  7 the improvements, determined as follows:
  3  8    a.  For the first year, eighty percent.
  3  9    b.  For the second year, seventy-five percent.
  3 10    c.  For the third year, seventy percent.
  3 11    d.  For the fourth year, sixty-five percent.
  3 12    e.  For the fifth year, sixty percent.
  3 13    f.  For the sixth year, fifty-five percent.
  3 14    g.  For the seventh year, fifty percent.
  3 15    h.  For the eighth year, forty-five percent.
  3 16    i.  For the ninth year, forty percent.
  3 17    j.  For the tenth year, thirty-five percent.
  3 18    k.  For the eleventh year, thirty percent.
  3 19    l.  For the twelfth year, twenty-five percent.
  3 20    m.  For the thirteenth year, twenty percent.
  3 21    n.  For the fourteenth year, twenty percent.
  3 22    o.  For the fifteenth year, twenty percent.
  3 23    3.  All qualified real estate described in subsection 1 is
  3 24 eligible to receive a one hundred percent exemption from
  3 25 taxation on the actual value added by the improvements.  The
  3 26 exemption is for a period of five years.
  3 27    Sec. 5.  Section 446.19A, subsection 2, Code 2003, is
  3 28 amended to read as follows:
  3 29    2.  On the day of the regular tax sale or any continuance
  3 30 or adjournment of the tax sale, the county or a city may bid
  3 31 for abandoned property assessed as residential property or as
  3 32 commercial multifamily housing property a sum equal to the
  3 33 total amount due.  Money shall not be paid by the county or
  3 34 city for the purchase, but each of the tax-levying and tax-
  3 35 certifying bodies having any interest in the taxes shall be
  4  1 charged with the total amount due the tax-levying or tax-
  4  2 certifying body as its just share of the purchase price.
  4  3 Prior to the purchase, the county or city shall file with the
  4  4 county treasurer a verified statement that a parcel to be
  4  5 purchased is abandoned and deteriorating in condition or is,
  4  6 or is likely to become, a public nuisance, and that the parcel
  4  7 is suitable for use for low or moderate income as housing
  4  8 following rehabilitation.
  4  9    Sec. 6.  Section 446.19A, subsection 4, paragraph a, Code
  4 10 2003, is amended to read as follows:
  4 11    a.  The city or county may assign the tax sale certificate
  4 12 obtained pursuant to this section.  Preference shall be given
  4 13 to purchasers who are low or moderate income families or
  4 14 organizations which assist low or moderate income families to
  4 15 obtain housing.  Persons who purchase certificates from the
  4 16 city or county under this subsection are liable for the total
  4 17 amount due the certificate holder pursuant to section 447.1.
  4 18    Sec. 7.  Section 446.19A, subsection 5, Code 2003, is
  4 19 amended to read as follows:
  4 20    5.  For the purposes of this section, "abandoned" means the
  4 21 same as in section 657A.1.  For the purposes of this section,
  4 22 "low or moderate income families" has the same meaning as in
  4 23 section 403.17.
  4 24    Sec. 8.  Section 447.9, subsection 1, Code 2003, is amended
  4 25 to read as follows:
  4 26    1.  After one year and nine months from the date of sale,
  4 27 or after nine months from the date of a sale made under
  4 28 section 446.18, 446.19A, or 446.39, or after three months from
  4 29 the date of a sale made under section 446.19A, the holder of
  4 30 the certificate of purchase may cause to be served upon the
  4 31 person in possession of the parcel, and also upon the person
  4 32 in whose name the parcel is taxed, a notice signed by the
  4 33 certificate holder or the certificate holder's agent or
  4 34 attorney, stating the date of sale, the description of the
  4 35 parcel sold, the name of the purchaser, and that the right of
  5  1 redemption will expire and a deed for the parcel be made
  5  2 unless redemption is made within ninety days from the
  5  3 completed service of the notice.  The notice shall be served
  5  4 by both regular mail and certified mail to the person's last
  5  5 known address and such service is deemed completed when the
  5  6 notice by certified mail is deposited in the mail and
  5  7 postmarked for delivery.  The ninety-day redemption period
  5  8 begins as provided in section 447.12.  When the notice is
  5  9 given by a county as a holder of a certificate of purchase the
  5 10 notice shall be signed by the county treasurer or the county
  5 11 attorney, and when given by a city, it shall be signed by the
  5 12 city officer designated by resolution of the council.  When
  5 13 the notice is given by the Iowa finance authority or a city or
  5 14 county agency holding the parcel as part of an Iowa
  5 15 homesteading project, it shall be signed on behalf of the
  5 16 agency or authority by one of its officers, as authorized in
  5 17 rules of the agency or authority.
  5 18    Sec. 9.  Section 657A.2, subsection 6, Code 2003, is
  5 19 amended by striking the subsection.
  5 20    Sec. 10.  NEW SECTION.  657A.10A  PETITION BY CITY FOR
  5 21 TITLE TO ABANDONED PROPERTY.
  5 22    1.  In lieu of the procedures in sections 657A.2 through
  5 23 657A.10, a city in which an abandoned building is located may
  5 24 petition the court to enter judgment awarding title to the
  5 25 abandoned property to the city.  If more than one abandoned
  5 26 building is located on a parcel of real estate, the city may
  5 27 combine the actions into one petition.  The owner of the
  5 28 building and grounds, mortgagees of record, lienholders of
  5 29 record, or other known persons who hold an interest in the
  5 30 property shall be named as respondents on the petition.
  5 31    The petition shall be filed in the district court of the
  5 32 county in which the property is located.  Service on the owner
  5 33 and any other named respondents shall be by certified mail and
  5 34 by posting the notice in a conspicuous place on the building.
  5 35 The action shall be in equity.
  6  1    2.  Not sooner than sixty days after the filing of the
  6  2 petition, the city may request a hearing on the petition.
  6  3    3.  In determining whether a property has been abandoned,
  6  4 the court shall consider the following for each building that
  6  5 is located on the property and named in the petition and the
  6  6 building grounds:
  6  7    a.  Whether any property taxes or special assessments on
  6  8 the property were delinquent at the time the petition was
  6  9 filed.
  6 10    b.  Whether any utilities are currently being provided to
  6 11 the property.
  6 12    c.  Whether the building is unoccupied by the owner or
  6 13 lessees or licensees of the owner.
  6 14    d.  Whether the building meets the city's housing code for
  6 15 being fit for human habitation, occupancy, or use.
  6 16    e.  Whether the building is exposed to the elements such
  6 17 that deterioration of the building is occurring.
  6 18    f.  Whether the building is boarded up.
  6 19    g.  Past efforts to rehabilitate the building and grounds.
  6 20    h.  The presence of vermin, accumulation of debris, and
  6 21 uncut vegetation.
  6 22    i.  The effort expended by the petitioning city to maintain
  6 23 the building and grounds.
  6 24    j.  Past and current compliance with orders of the local
  6 25 housing official.
  6 26    k.  Any other evidence the court deems relevant.
  6 27    4.  In lieu of the considerations in subsection 3, if the
  6 28 city can establish to the court's satisfaction that all
  6 29 parties with an interest in the property have received proper
  6 30 notice and either consented to the entry of an order awarding
  6 31 title to the property to the city or did not make a good faith
  6 32 effort to comply with the order of the local housing official
  6 33 within sixty days after the filing of the petition, the court
  6 34 shall enter judgment against the respondents granting the city
  6 35 title to the property.
  7  1    5.  If the court determines that the property has been
  7  2 abandoned or that subsection 4 applies, the court shall enter
  7  3 judgment awarding title to the city.  The title awarded to the
  7  4 city shall be free and clear of any claims, liens, or
  7  5 encumbrances held by the respondents.
  7  6    Sec. 11.  IMMEDIATE EFFECTIVE DATE.  This Act, being deemed
  7  7 of immediate importance, takes effect upon enactment.
  7  8    Sec. 12.  APPLICABILITY DATE.
  7  9    1.  The sections of this Act amending sections 404.2 and
  7 10 404.3 and enacting section 404.3B apply to urban
  7 11 revitalization property tax exemptions allowed on or after the
  7 12 effective date of this Act.
  7 13    2.  The sections of this Act amending sections 446.19A and
  7 14 447.9 apply to delinquent property taxes sold at a tax sale
  7 15 held on or after the effective date of this Act.  
  7 16 
  7 17 
  7 18                                                             
  7 19                               JEFFREY M. LAMBERTI
  7 20                               President of the Senate
  7 21 
  7 22 
  7 23                                                             
  7 24                               CHRISTOPHER C. RANTS
  7 25                               Speaker of the House
  7 26 
  7 27    I hereby certify that this bill originated in the Senate and
  7 28 is known as Senate File 2291, Eightieth General Assembly.
  7 29 
  7 30 
  7 31                                                             
  7 32                               MICHAEL E. MARSHALL
  7 33                               Secretary of the Senate
  7 34 Approved                , 2004
  7 35 
  8  1 
  8  2                                
  8  3 THOMAS J. VILSACK
  8  4 Governor
     

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