Senate File 2011
SENATE FILE
BY KREIMAN
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the interest rates charged against delinquent
2 property taxes and providing an applicability date.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5139XS 80
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PAG LIN
1 1 Section 1. Section 445.39, Code 2003, is amended to read
1 2 as follows:
1 3 445.39 INTEREST ON DELINQUENT TAXES.
1 4 If the first installment of taxes is not paid by the
1 5 delinquent date specified in section 445.37, the installment
1 6 becomes due and draws interest of one and one=half percent per
1 7 month until paid, from the delinquent date following the levy.
1 8 If the last half is not paid by the delinquent date specified
1 9 for it in section 445.37, the same interest shall be charged
1 10 from the date the last half became delinquent. However, after
1 11 April 1 in a fiscal year when late delivery of the tax list
1 12 referred to in chapter 443 results in a delinquency date later
1 13 than October 1 for the first installment, interest on
1 14 delinquent first installments shall accrue as if delivery were
1 15 made on the previous June 30. The interest imposed under this
1 16 section shall be computed to the nearest whole dollar and the
1 17 amount of interest shall not be less than one dollar. In
1 18 calculating interest each fraction of a month shall be counted
1 19 as an entire month. The interest percentage on delinquent
1 20 special assessments and rates or charges is the same as that
1 21 for the first installment of delinquent ad valorem taxes.
1 22 Sec. 2. Section 447.1, unnumbered paragraph 1, Code 2003,
1 23 is amended to read as follows:
1 24 A parcel sold under this chapter and chapter 446 may be
1 25 redeemed at any time before the right of redemption expires,
1 26 by payment to the county treasurer, to be held by the
1 27 treasurer subject to the order of the purchaser, of the amount
1 28 for which the parcel was sold, including the fee for the
1 29 certificate of purchase, and interest of two one and one=half
1 30 percent per month, counting each fraction of a month as an
1 31 entire month, from the month of sale, and the total amount
1 32 paid by the purchaser or the purchaser's assignee for any
1 33 subsequent year, with interest at the same rate added on the
1 34 amount of the payment for each subsequent year from the month
1 35 of payment, counting each fraction of a month as an entire
2 1 month. The amount of interest must be at least one dollar and
2 2 shall be rounded to the nearest whole dollar. Interest shall
2 3 accrue on subsequent amounts from the month of payment by the
2 4 certificate holder.
2 5 Sec. 3. APPLICABILITY DATE. Section 1 of this Act applies
2 6 to property taxes first delinquent after July 1, 2004.
2 7 EXPLANATION
2 8 This bill changes the interest rates that can be charged
2 9 against delinquent property taxes. The interest rate imposed
2 10 on delinquent taxes before the taxes are sold at tax sale is
2 11 changed from 1.5 percent to 1 percent. This section of the
2 12 bill applies to property taxes first delinquent after July 1,
2 13 2004.
2 14 The interest rate imposed on delinquent taxes sold at tax
2 15 sale is changed from 2 percent to 1.5 percent. This is the
2 16 interest rate that is paid to the person who bought the
2 17 delinquent taxes (i.e., the tax sale certificate holder) when
2 18 the property is redeemed. Because Code section 447.14
2 19 provides that the law in effect at the time of tax sale
2 20 governs redemption, this section of the bill applies to
2 21 property taxes sold on or after July 1, 2004.
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