Senate File 2291
SENATE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SF 2115)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to local government authority to encourage
2 development and rehabilitation of certain real property and
3 including effective date and applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5614SV 80
6 sc/sh/8
PAG LIN
1 1 Section 1. Section 404.2, subsection 2, paragraph h,
1 2 unnumbered paragraph 1, Code 2003, is amended to read as
1 3 follows:
1 4 Any tax exemption schedule authorized in section 404.3,
1 5 subsection 4A, that shall be used in lieu of the schedule set
1 6 out in section 404.3, subsection 1, 2, 3 or 4. This schedule
1 7 shall not allow a greater exemption, but may allow a smaller
1 8 exemption, than allowed in the schedule specified in the
1 9 corresponding subsection of section 404.3.
1 10 Sec. 2. Section 404.3, Code 2003, is amended by adding the
1 11 following new subsection:
1 12 NEW SUBSECTION. 4A. A city or county may adopt a
1 13 different tax exemption schedule than those allowed in
1 14 subsection 1, 2, 3, or 4. The different schedule adopted
1 15 shall not allow a greater exemption, but may allow a smaller
1 16 exemption, in a particular year, than allowed in the schedule
1 17 specified in the corresponding subsection of this section. A
1 18 different schedule adopted by a city or county shall apply to
1 19 every revitalization area within the city or county, unless
1 20 the qualified property is eligible for an exemption pursuant
1 21 to section 404.3A or 404.3B, and except in areas of the city
1 22 or county which have been designated as both urban renewal and
1 23 urban revitalization areas. In an area designated for both
1 24 urban renewal and urban revitalization, a city or county may
1 25 adopt a different schedule than has been adopted for
1 26 revitalization areas which have not been designated as urban
1 27 renewal areas.
1 28 Sec. 3. Section 404.3, subsections 5 and 6, Code 2003, are
1 29 amended to read as follows:
1 30 5. The owners of qualified real estate eligible for the
1 31 exemption provided in this section or section 404.3A or 404.3B
1 32 shall elect to take the applicable exemption provided in
1 33 subsection 1, 2, 3 or 4 or shall elect to take the applicable
1 34 exemption provided in the different schedule authorized by
1 35 subsection 4A and adopted in the city or county plan if a
2 1 different schedule has been adopted. Once the election has
2 2 been made and the exemption granted, the owner is not
2 3 permitted to change the method of exemption.
2 4 6. The tax exemption schedule specified in subsection 1,
2 5 2, 3 or 4 shall apply to every revitalization area within a
2 6 city or county unless a different schedule is adopted in the
2 7 city or county plan as provided in section 404.2 and
2 8 authorized by subsection 4A. However, a city or county shall
2 9 not adopt a different schedule unless every revitalization
2 10 area within the city or county has the same schedule applied
2 11 to it, except in areas of the city or county which have been
2 12 designated as both urban renewal and urban revitalization
2 13 areas. In an area designated for both urban renewal and urban
2 14 revitalization, a city or county may adopt a different
2 15 schedule than has been adopted for revitalization areas which
2 16 have not been designated as urban renewal areas. The
2 17 different schedule adopted shall not provide for a larger tax
2 18 exemption in a particular year than is provided for that year
2 19 in the schedule specified in the corresponding subsection of
2 20 this section.
2 21 Sec. 4. NEW SECTION. 404.3B ABANDONED REAL PROPERTY
2 22 EXEMPTION.
2 23 1. Notwithstanding the schedules provided for in section
2 24 404.3, a city or county may provide that all qualified real
2 25 estate that meets the definition of abandoned as stated in
2 26 section 657A.1 is eligible to receive an exemption from
2 27 taxation based on the schedule set forth in subsection 2 or 3.
2 28 2. All qualified real estate described in subsection 1 is
2 29 eligible to receive a partial exemption from taxation on the
2 30 actual value added by the improvements. The exemption is for
2 31 a period of fifteen years. The amount of the partial
2 32 exemption is equal to a percent of the actual value added by
2 33 the improvements, determined as follows:
2 34 a. For the first year, eighty percent.
2 35 b. For the second year, seventy=five percent
3 1 c. For the third year, seventy percent.
3 2 d. For the fourth year, sixty=five percent.
3 3 e. For the fifth year, sixty percent.
3 4 f. For the sixth year, fifty=five percent.
3 5 g. For the seventh year, fifty percent.
3 6 h. For the eighth year, forty=five percent.
3 7 i. For the ninth year, forty percent.
3 8 j. For the tenth year, thirty=five percent.
3 9 k. For the eleventh year, thirty percent.
3 10 l. For the twelfth year, twenty=five percent.
3 11 m. For the thirteenth year, twenty percent.
3 12 n. For the fourteenth year, twenty percent.
3 13 o. For the fifteenth year, twenty percent.
3 14 3. All qualified real estate described in subsection 1 is
3 15 eligible to receive a one hundred percent exemption from
3 16 taxation on the actual value added by the improvements. The
3 17 exemption is for a period of five years.
3 18 Sec. 5. Section 446.19A, subsection 2, Code 2003, is
3 19 amended to read as follows:
3 20 2. On the day of the regular tax sale or any continuance
3 21 or adjournment of the tax sale, the county or a city may bid
3 22 for abandoned property assessed as residential property or as
3 23 commercial multifamily housing property a sum equal to the
3 24 total amount due. Money shall not be paid by the county or
3 25 city for the purchase, but each of the tax=levying and tax=
3 26 certifying bodies having any interest in the taxes shall be
3 27 charged with the total amount due the tax=levying or tax=
3 28 certifying body as its just share of the purchase price.
3 29 Prior to the purchase, the county or city shall file with the
3 30 county treasurer a verified statement that a parcel to be
3 31 purchased is abandoned and deteriorating in condition or is,
3 32 or is likely to become, a public nuisance, and that the parcel
3 33 is suitable for use for low or moderate income as housing
3 34 following rehabilitation.
3 35 Sec. 6. Section 446.19A, subsection 4, paragraph a, Code
4 1 2003, is amended to read as follows:
4 2 a. The city or county may assign the tax sale certificate
4 3 obtained pursuant to this section. Preference shall be given
4 4 to purchasers who are low or moderate income families or
4 5 organizations which assist low or moderate income families to
4 6 obtain housing. Persons who purchase certificates from the
4 7 city or county under this subsection are liable for the total
4 8 amount due the certificate holder pursuant to section 447.1.
4 9 Sec. 7. Section 446.19A, subsection 5, Code 2003, is
4 10 amended to read as follows:
4 11 5. For the purposes of this section, "abandoned" means the
4 12 same as in section 657A.1. For the purposes of this section,
4 13 "low or moderate income families" has the same meaning as in
4 14 section 403.17.
4 15 Sec. 8. Section 447.9, subsection 1, Code 2003, is amended
4 16 to read as follows:
4 17 1. After one year and nine months from the date of sale,
4 18 or after nine months from the date of a sale made under
4 19 section 446.18, 446.19A, or 446.39, or after three months from
4 20 the date of a sale made under section 446.19A, the holder of
4 21 the certificate of purchase may cause to be served upon the
4 22 person in possession of the parcel, and also upon the person
4 23 in whose name the parcel is taxed, a notice signed by the
4 24 certificate holder or the certificate holder's agent or
4 25 attorney, stating the date of sale, the description of the
4 26 parcel sold, the name of the purchaser, and that the right of
4 27 redemption will expire and a deed for the parcel be made
4 28 unless redemption is made within ninety days from the
4 29 completed service of the notice. The notice shall be served
4 30 by both regular mail and certified mail to the person's last
4 31 known address and such service is deemed completed when the
4 32 notice by certified mail is deposited in the mail and
4 33 postmarked for delivery. The ninety=day redemption period
4 34 begins as provided in section 447.12. When the notice is
4 35 given by a county as a holder of a certificate of purchase the
5 1 notice shall be signed by the county treasurer or the county
5 2 attorney, and when given by a city, it shall be signed by the
5 3 city officer designated by resolution of the council. When
5 4 the notice is given by the Iowa finance authority or a city or
5 5 county agency holding the parcel as part of an Iowa
5 6 homesteading project, it shall be signed on behalf of the
5 7 agency or authority by one of its officers, as authorized in
5 8 rules of the agency or authority.
5 9 Sec. 9. Section 657A.2, subsection 6, Code 2003, is
5 10 amended by striking the subsection.
5 11 Sec. 10. NEW SECTION. 657A.10A PETITION BY CITY FOR
5 12 TITLE TO ABANDONED PROPERTY.
5 13 1. In lieu of the procedures in sections 657A.2 through
5 14 657A.10, a city in which an abandoned building is located may
5 15 petition the court to enter judgment awarding title to the
5 16 abandoned property to the city. If more than one abandoned
5 17 building is located on a parcel of real estate, the city may
5 18 combine the actions into one petition. The owner of the
5 19 building and grounds, mortgagees of record, lienholders of
5 20 record, or other known persons who hold an interest in the
5 21 property shall be named as respondents on the petition.
5 22 The petition shall be filed in the district court of the
5 23 county in which the property is located. Service on the owner
5 24 and any other named respondents shall be by certified mail and
5 25 by posting the notice in a conspicuous place on the building.
5 26 The action shall be in equity.
5 27 2. Not sooner than sixty days after the filing of the
5 28 petition, the city may request a hearing on the petition.
5 29 3. In determining whether a property has been abandoned,
5 30 the court shall consider the following for each building that
5 31 is located on the property and named in the petition and the
5 32 building grounds:
5 33 a. Whether any property taxes or special assessments on
5 34 the property were delinquent at the time the petition was
5 35 filed.
6 1 b. Whether any utilities are currently being provided to
6 2 the property.
6 3 c. Whether the building is unoccupied by the owner or
6 4 lessees or licensees of the owner.
6 5 d. Whether the building meets the city's housing code for
6 6 being fit for human habitation, occupancy, or use.
6 7 e. Whether the building is exposed to the elements such
6 8 that deterioration of the building is occurring.
6 9 f. Whether the building is boarded up.
6 10 g. Past efforts to rehabilitate the building and grounds.
6 11 h. The presence of vermin, accumulation of debris, and
6 12 uncut vegetation.
6 13 i. The effort expended by the petitioning city to maintain
6 14 the building and grounds.
6 15 j. Past and current compliance with orders of the local
6 16 housing official.
6 17 k. Any other evidence the court deems relevant.
6 18 4. In lieu of the considerations in subsection 3, if the
6 19 city can establish to the court's satisfaction that all
6 20 parties with an interest in the property have received proper
6 21 notice and either consented to the entry of an order awarding
6 22 title to the property to the city or did not make a good faith
6 23 effort to comply with the order of the local housing official
6 24 within sixty days after the filing of the petition, the court
6 25 shall enter judgment against the respondents granting the city
6 26 title to the property.
6 27 5. If the court determines that the property has been
6 28 abandoned or that subsection 4 applies, the court shall enter
6 29 judgment awarding title to the city. The title awarded to the
6 30 city shall be free and clear of any claims, liens, or
6 31 encumbrances held by the respondents.
6 32 Sec. 11. IMMEDIATE EFFECTIVE DATE. This Act, being deemed
6 33 of immediate importance, takes effect upon enactment.
6 34 Sec. 12. APPLICABILITY DATE.
6 35 1. The sections of this Act amending sections 404.2 and
7 1 404.3 and enacting section 404.3B apply to urban
7 2 revitalization property tax exemptions allowed on or after the
7 3 effective date of this Act.
7 4 2. The sections of this Act amending sections 446.19A and
7 5 447.9 apply to delinquent property taxes sold at a tax sale
7 6 held on or after the effective date of this Act.
7 7 EXPLANATION
7 8 This bill relates to a local government's authority to
7 9 encourage development and rehabilitation of certain real
7 10 property.
7 11 The bill allows alternative urban revitalization property
7 12 tax exemption schedules for abandoned property that has been
7 13 rehabilitated. One schedule provides a partial exemption for
7 14 a period of 15 years and one schedule provides a full
7 15 exemption for five years. The bill also rewrites provisions
7 16 of the urban revitalization chapter to clarify statutory
7 17 language on alternative exemption schedules that may be
7 18 adopted by a city or a county. These sections of the bill
7 19 apply to urban revitalization property tax exemptions allowed
7 20 on or after the effective date of the bill.
7 21 The bill amends the Code section which allows a city to
7 22 purchase delinquent property taxes on residential property for
7 23 use as low or moderate income housing to allow the property to
7 24 be used for any type of housing. This portion of the bill
7 25 applies to delinquent property tax sales held on or after the
7 26 effective date of the bill.
7 27 The bill shortens the redemption period from nine months to
7 28 three months for redemption of delinquent property taxes sold
7 29 to a city for use as housing. By operation of law, the
7 30 shortened redemption period applies to delinquent property
7 31 taxes sold on or after the effective date of the bill.
7 32 The bill amends Code chapter 657A, relating to abatement by
7 33 rehabilitation of abandoned or unsafe buildings, to provide an
7 34 alternative to the current process whereby a city or county
7 35 may petition the court for appointment of a receiver to
8 1 rehabilitate abandoned buildings which are used or intended to
8 2 be used primarily for residential purposes. The bill allows a
8 3 city, in lieu of the current process, to petition the court to
8 4 award title to the property to the city if the court
8 5 determines that the property is abandoned or if the owner or
8 6 persons with an interest in the property agree to an award of
8 7 title to the city, or if the city can show that the owner or
8 8 persons with an interest in the property did not make a good
8 9 faith effort to comply with local housing official orders
8 10 within 60 days after the filing of the petition for title.
8 11 The bill also strikes a provision which requires that a
8 12 city with a population of less than 100,000 which files a
8 13 petition for abatement must include the allegation that a
8 14 building is abandoned and is in a dangerous or unsafe
8 15 condition.
8 16 The bill takes effect upon enactment.
8 17 LSB 5614SV 80
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