Senate File 170 - Introduced
SENATE FILE
BY ANGELO
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to delinquent property taxes and other duties of
2 the county treasurer and including effective date and
3 applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 311.18, Code 2005, is amended to read
1 2 as follows:
1 3 311.18 ASSESSMENT DELINQUENT == INTEREST.
1 4 The assessed taxes shall become delinquent from October 1
1 5 after their maturity including those instances. However, when
1 6 the last day of September is a Saturday or Sunday, the
1 7 assessed taxes shall become delinquent from the second
1 8 business day of October. Taxes assessed pursuant to this
1 9 chapter which become delinquent shall bear the same interest,
1 10 and be attended with the same rights and remedies for
1 11 collection, as ordinary taxes.
1 12 Sec. 2. Section 317.21, subsection 1, Code 2005, is
1 13 amended to read as follows:
1 14 1. Annually, after the weed commissioner has completed the
1 15 program of destruction of weeds by reason of noncompliance by
1 16 persons responsible for the destruction, the board of
1 17 supervisors shall determine as to each tract of real estate
1 18 the actual cost of labor and materials used by the
1 19 commissioner in cutting, burning, or otherwise destroying the
1 20 weeds, the cost of serving notice, and of special meetings or
1 21 proceedings, if any. To the total of all sums expended, the
1 22 board shall add an amount equal to twenty=five percent of that
1 23 total to compensate for the cost of supervision and
1 24 administration and assess the resulting sum against the tract
1 25 of real estate by a special tax, which shall be certified to
1 26 the county auditor and county treasurer by the clerk of the
1 27 board of supervisors, and shall be placed upon the tax books,
1 28 and collected, with interest after delinquent, in the same
1 29 manner as other unpaid taxes. The tax shall be due on March 1
1 30 after assessment, and shall be delinquent from April 1 after
1 31 due, including those instances. However, when the last day of
1 32 March is a Saturday or Sunday, such amount shall be delinquent
1 33 from the second business day of April. When collected, the
1 34 moneys shall be paid into the fund from which the costs were
1 35 originally paid.
2 1 Sec. 3. Section 321.20, unnumbered paragraph 1, Code 2005,
2 2 is amended to read as follows:
2 3 Except as provided in this chapter, an owner of a vehicle
2 4 subject to registration shall make application to the county
2 5 treasurer of the county of the owner's residence, or if a
2 6 nonresident, to the county treasurer of the county where the
2 7 primary users of the vehicle are located, or if a lessor of
2 8 the vehicle pursuant to chapter 321F which vehicle has a gross
2 9 vehicle weight of less than ten thousand pounds, to the county
2 10 treasurer of the county of the lessee's residence, for the
2 11 registration and issuance of a certificate of title for the
2 12 vehicle upon the appropriate form furnished by the department.
2 13 However, upon the transfer of ownership, the owner of a
2 14 vehicle subject to the proportional registration provisions of
2 15 chapter 326 shall make application for registration and
2 16 issuance of a certificate of title to either the department or
2 17 the appropriate county treasurer. The application shall be
2 18 accompanied by a fee of ten dollars, and shall bear the
2 19 owner's signature. A nonresident owner of two or more
2 20 vehicles subject to registration may make application for
2 21 registration and issuance of a certificate of title for all
2 22 vehicles subject to registration to the county treasurer of
2 23 the county where the primary user of any of the vehicles is
2 24 located. The owner of a mobile home or manufactured home
2 25 shall make application for a certificate of title under this
2 26 section from the county treasurer of the county where the
2 27 mobile home or manufactured home is located. The application
2 28 shall contain:
2 29 Sec. 4. Section 321.42, subsection 2, paragraph b, Code
2 30 2005, is amended to read as follows:
2 31 b. After five days, the department or county treasurer
2 32 shall issue a replacement copy using the applicant's most
2 33 recent bona fide address; however, the five=day waiting period
2 34 does not apply to an applicant who is a lienholder or to an
2 35 applicant who has surrendered the original certificate of
3 1 title to the department or county treasurer. The replacement
3 2 copy shall be clearly marked "replacement" and shall include
3 3 security interests and liens. When a replacement copy has
3 4 been issued, the previous certificate is void. The department
3 5 or county treasurer is not authorized to refund fees collected
3 6 for a replacement title under this section or section 321.52A.
3 7 Sec. 5. Section 321.46, subsection 1, Code 2005, is
3 8 amended to read as follows:
3 9 1. The transferee shall, within thirty calendar days after
3 10 purchase or transfer, apply for and obtain from the county
3 11 treasurer of the person's residence or, if a nonresident, the
3 12 county treasurer of the county where the primary users of the
3 13 vehicle are located or the county where all other vehicles
3 14 owned by the nonresident are registered, or, in the case of a
3 15 mobile home or manufactured home, the county treasurer of the
3 16 county where the mobile home or manufactured home is located,
3 17 a new registration and a new certificate of title for the
3 18 vehicle except as provided in section 321.25, 321.48, or
3 19 322G.12. The transferee shall present with the application
3 20 the certificate of title endorsed and assigned by the previous
3 21 owner and shall indicate the name of the county in which the
3 22 vehicle was last registered and the registration expiration
3 23 date.
3 24 Sec. 6. Section 321.47, unnumbered paragraph 1, Code 2005,
3 25 is amended to read as follows:
3 26 If ownership of a vehicle is transferred by operation of
3 27 law upon inheritance, devise or bequest, dissolution decree,
3 28 order in bankruptcy, insolvency, replevin, foreclosure or
3 29 execution sale, abandoned vehicle sale, or when the engine of
3 30 a motor vehicle is replaced by another engine, or a vehicle is
3 31 sold or transferred to satisfy an artisan's lien as provided
3 32 in chapter 577, a landlord's lien as provided in chapter 570,
3 33 a storage lien as provided in chapter 579, a judgment in an
3 34 action for abandonment of a manufactured or mobile home as
3 35 provided in chapter 555B, upon presentation of an affidavit
4 1 relating to the disposition of a valueless mobile, modular, or
4 2 manufactured home as provided in chapter 555C, or repossession
4 3 is had upon default in performance of the terms of a security
4 4 agreement, the county treasurer in the transferee's county of
4 5 residence or, in the case of a mobile home or manufactured
4 6 home, the county treasurer of the county where the mobile home
4 7 or manufactured home is located, upon the surrender of the
4 8 prior certificate of title or the manufacturer's or importer's
4 9 certificate, or when that is not possible, upon presentation
4 10 of satisfactory proof to the county treasurer of ownership and
4 11 right of possession to the vehicle and upon payment of a fee
4 12 of ten dollars and the presentation of an application for
4 13 registration and certificate of title, may issue to the
4 14 applicant a registration card for the vehicle and a
4 15 certificate of title to the vehicle. A person entitled to
4 16 ownership of a vehicle under a decree of dissolution shall
4 17 surrender a reproduction of a certified copy of the
4 18 dissolution and upon fulfilling the other requirements of this
4 19 chapter is entitled to a certificate of title and registration
4 20 receipt issued in the person's name.
4 21 Sec. 7. Section 331.553, subsection 6, Code 2005, is
4 22 amended to read as follows:
4 23 6. Require a payor or an agent of a payor to make payment
4 24 by electronic transfer of the funds through the county
4 25 treasurer's authorized website when the payment totals one
4 26 hundred twenty=five thousand dollars or more.
4 27 Sec. 8. Section 331.553, Code 2005, is amended by adding
4 28 the following new subsection:
4 29 NEW SUBSECTION. 7. Treat a payment made by electronic
4 30 funds transfer as if it were a paper check for purposes of
4 31 section 554.3512.
4 32 Sec. 9. Section 384.60, subsection 2, Code 2005, is
4 33 amended to read as follows:
4 34 2. On or before the second publication of the notice, the
4 35 clerk shall send by mail to each property owner whose property
5 1 is subject to assessment for the improvement, as shown by the
5 2 records in the office of the county auditor, a copy of the
5 3 notice. The notice shall also include a statement in
5 4 substance that assessments may be paid in full or in part
5 5 without interest within thirty days after the date of the
5 6 first notice of the final assessment schedule, and thereafter
5 7 all unpaid special assessments bear interest at the rate
5 8 specified by the council, but not exceeding that permitted by
5 9 chapter 74A, computed to the December 1 next following the due
5 10 dates of the respective installments as provided in section
5 11 384.65, subsection 3, and each installment will be delinquent
5 12 from October 1 following its due date, including those
5 13 instances. However, when the last day of September is a
5 14 Saturday or Sunday, and that amount shall be delinquent from
5 15 the second business day of October. Delinquent installments
5 16 will draw additionally the same delinquent interest as
5 17 ordinary taxes. The notice shall also state substantially
5 18 that property owners may elect to pay any installment
5 19 semiannually in advance. If a property is shown by the
5 20 records to be in the name of more than one owner at the same
5 21 mailing address, a single notice may be mailed to all owners
5 22 at that address. Failure to receive a mailed notice is not a
5 23 defense to the special assessment or interest due on the
5 24 special assessment.
5 25 Sec. 10. Section 384.65, subsection 4, Code 2005, is
5 26 amended to read as follows:
5 27 4. Each installment of an assessment with interest on the
5 28 unpaid balance is delinquent from October 1 after its due
5 29 date, including those instances when the last day of September
5 30 is a Saturday or Sunday, and bears the same delinquent
5 31 interest as ordinary taxes. However, when the last day of
5 32 September is a Saturday or Sunday, the unpaid balance of the
5 33 installment is delinquent from the second business day of
5 34 October after its due date. When collected, the interest must
5 35 be credited to the same fund as the special assessment.
6 1 To avoid interest on delinquent special assessment
6 2 installments, a payment of the full installment amount must be
6 3 received by the treasurer on or before the last business day
6 4 of the month preceding the delinquent date, or mailed with
6 5 appropriate postage and applicable fees paid, and a United
6 6 States postal service postmark affixed to the payment
6 7 envelope, with the postmark bearing a date preceding the
6 8 delinquent date. Items returned to the sender by the United
6 9 States postal service for insufficient postage or applicable
6 10 fees shall be assessed interest, unless the appropriate
6 11 postage and fees are paid and the items are postmarked again
6 12 before the delinquent date. However, if the last calendar day
6 13 of a month falls on a Saturday, Sunday, or a holiday, that
6 14 amount becomes delinquent on the second business day of the
6 15 following month.
6 16 To avoid interest on current or delinquent special
6 17 assessment installments, for payments made through a county
6 18 treasurer's authorized website only, if the last day of the
6 19 month falls on a Saturday, Sunday, or a holiday, the
6 20 electronic payment must be initiated by midnight on the first
6 21 business day of the next month. All other electronic payments
6 22 must be initiated by midnight on the last day of the month
6 23 preceding the delinquent date.
6 24 Sec. 11. Section 435.24, subsection 6, Code 2005, is
6 25 amended to read as follows:
6 26 6. a. As an alternative to the semiannual or annual
6 27 payment of taxes, the county treasurer may accept partial
6 28 payments of current year home taxes. A minimum payment amount
6 29 shall be established by the treasurer. The treasurer shall
6 30 transfer amounts from each taxpayer's account to be applied to
6 31 each semiannual tax installment prior to the delinquency dates
6 32 specified in section 445.37 and the amounts collected shall be
6 33 apportioned by the tenth of the month following transfer. If,
6 34 prior to the due date of each semiannual installment, the
6 35 account balance is insufficient to fully satisfy the
7 1 installment, the treasurer shall transfer and apply the entire
7 2 account balance, leaving an unpaid balance of the installment.
7 3 Interest shall attach on the unpaid balance in accordance with
7 4 section 445.39. Unless funds sufficient to fully satisfy the
7 5 delinquency are received, the treasurer shall collect the
7 6 unpaid balance as provided in sections 445.3 and 445.4 and
7 7 chapter 446. Any remaining balance in a taxpayer's account in
7 8 excess of the amount needed to fully satisfy an installment
7 9 shall remain in the account to be applied toward the next
7 10 semiannual installment. Any interest income derived from the
7 11 account shall be deposited in the county's general fund to
7 12 cover administrative costs. The treasurer shall send a notice
7 13 with the tax statement or by separate mail to each taxpayer
7 14 stating that, upon request to the treasurer, the taxpayer may
7 15 make partial payments of current year home taxes.
7 16 b. Partial payment of taxes which are delinquent may be
7 17 made to the county treasurer. A minimum payment amount shall
7 18 be established by the treasurer. The minimum payment must be
7 19 equal to or exceed the interest, fees, and costs attributed to
7 20 the oldest delinquent installment of the tax and For the
7 21 installment being paid, payment shall first be applied toward
7 22 any interest, fees, and costs accrued and the remainder
7 23 applied to the tax due. A partial payment must equal or
7 24 exceed the interest, fees, and costs of the installment being
7 25 paid. A partial payment made under this paragraph shall be
7 26 apportioned in accordance with section 445.57. If the payment
7 27 does not include the whole of any installment of the
7 28 delinquent tax, the unpaid tax shall continue to accrue
7 29 interest pursuant to section 445.39. Partial payment shall
7 30 not be permitted in lieu of redemption if the property has
7 31 been sold for taxes under chapter 446 and under any
7 32 circumstances shall not constitute an extension of the time
7 33 period for a sale under chapter 446.
7 34 Sec. 12. Section 445.5, subsection 2, unnumbered paragraph
7 35 2, Code 2005, is amended to read as follows:
8 1 The treasurer may negotiate and charge a reasonable fee not
8 2 to exceed the cost of producing the information for the a
8 3 requestor described in paragraphs "c" through "e", for a tax
8 4 statement or tax statement information provided by the
8 5 treasurer.
8 6 Sec. 13. Section 445.5, Code 2005, is amended by adding
8 7 the following new subsection:
8 8 NEW SUBSECTION. 3A. The titleholder may make written
8 9 request to the treasurer to have the tax statement delivered
8 10 to a person or entity in lieu of to the titleholder. A fee
8 11 shall not be charged by the treasurer for delivering the tax
8 12 statement to such person in lieu of to the titleholder.
8 13 Sec. 14. Section 445.36, Code 2005, is amended by adding
8 14 the following new subsection:
8 15 NEW SUBSECTION. 3. The treasurer may charge a reasonable
8 16 fee for processing a payment made by a person or entity listed
8 17 in section 445.5, subsection 2, paragraphs "c" through "e", or
8 18 the person's or entity's duly authorized agent, if such a
8 19 payment is made by any other means than through the
8 20 treasurer's authorized website.
8 21 Sec. 15. Section 445.36A, Code 2005, is amended to read as
8 22 follows:
8 23 445.36A PARTIAL PAYMENTS.
8 24 1. As an alternative to the semiannual or annual payment
8 25 of taxes, the county treasurer may accept partial payments of
8 26 taxes. A minimum payment amount shall be established by the
8 27 treasurer. The treasurer shall transfer amounts from each
8 28 taxpayer's account to be applied to each semiannual tax
8 29 installment prior to the delinquency dates specified in
8 30 section 445.37 and the amounts collected shall be apportioned
8 31 by the tenth of the month following transfer. If, prior to
8 32 the due date of each semiannual installment, the account
8 33 balance is insufficient to fully satisfy the installment, the
8 34 treasurer shall transfer and apply the entire account balance,
8 35 leaving an unpaid balance of the installment. Interest shall
9 1 attach on the unpaid balance in accordance with section
9 2 445.39. Unless funds sufficient to fully satisfy the
9 3 delinquency are received, the treasurer shall collect the
9 4 unpaid balance as provided in sections 445.3 and 445.4 and
9 5 chapter 446. Any remaining balance in a taxpayer's account in
9 6 excess of the amount needed to fully satisfy an installment
9 7 shall remain in the account to be applied toward the next
9 8 semiannual installment. Any interest income derived from the
9 9 account shall be deposited in the county's general fund to
9 10 cover administrative costs. The treasurer shall send a notice
9 11 with the tax statement or by separate mail to each taxpayer
9 12 stating that, upon request to the treasurer, the taxpayer may
9 13 make partial payments of taxes.
9 14 2. Partial payment of taxes which are delinquent may be
9 15 made to the county treasurer. A minimum payment amount shall
9 16 be established by the treasurer. The minimum payment must be
9 17 equal to or exceed the interest and costs attributed to the
9 18 oldest delinquent installment of the tax and For the
9 19 installment being paid, payment shall first be applied to any
9 20 interest, fees, and costs accrued and the remainder applied to
9 21 the taxes due. A partial payment must equal or exceed the
9 22 amount of interest, fees, and costs of the installment being
9 23 paid. A partial payment made under this subsection shall be
9 24 apportioned in accordance with section 445.57. If the payment
9 25 does not include the whole of any installment of the
9 26 delinquent tax, the unpaid tax shall continue to accrue
9 27 interest pursuant to section 445.39. Partial payment shall
9 28 not be permitted in lieu of redemption if the property has
9 29 been sold for taxes under chapter 446 and under any
9 30 circumstances shall not constitute an extension of the time
9 31 period for a sale under chapter 446.
9 32 Current year taxes may be paid at any time regardless of
9 33 any outstanding prior year delinquent tax.
9 34 This section does not apply to the payment of manufactured
9 35 or mobile home taxes, special assessments, or rates or
10 1 charges.
10 2 Sec. 16. Section 446.16, subsection 1, Code 2005, is
10 3 amended to read as follows:
10 4 1. The person who offers to pay the total amount due,
10 5 which is a lien on any parcel, for the smallest percentage of
10 6 the parcel is the purchaser, and when the purchaser designates
10 7 the percentage of any parcel for which the purchaser will pay
10 8 the total amount due, the percentage thus designated shall
10 9 give the person an undivided interest upon the issuance of a
10 10 treasurer's deed, as provided in chapter 448. If two or more
10 11 persons have placed an equal bid and the bids are the smallest
10 12 percentage offered, the county treasurer shall use a random
10 13 selection process to select the bidder to whom a certificate
10 14 of purchase will be issued. The percentage that may be
10 15 designated by any purchaser under this subsection shall not be
10 16 less than one percent.
10 17 Sec. 17. Section 446.19A, subsections 1 through 4, Code
10 18 2005, are amended to read as follows:
10 19 1. The board of supervisors of a county may adopt an
10 20 ordinance authorizing the county and each city in the county
10 21 to bid on and purchase delinquent taxes and to assign tax sale
10 22 certificates of abandoned property or vacant lots. This
10 23 section may only be used by a county or by a city in the
10 24 county if such an ordinance is in effect.
10 25 2. On the day of the regular tax sale or any continuance
10 26 or adjournment of the tax sale, the county or a city may bid
10 27 for abandoned property assessed as residential property or as
10 28 commercial multifamily housing property or for a vacant lot a
10 29 sum equal to the total amount due. Money shall not be paid by
10 30 the county or city for the purchase, but each of the tax=
10 31 levying and tax=certifying bodies having any interest in the
10 32 taxes shall be charged with the total amount due the tax=
10 33 levying or tax=certifying body as its just share of the
10 34 purchase price. Prior to the purchase, the county or city
10 35 shall file with the county treasurer a verified statement that
11 1 a parcel to be purchased is abandoned and deteriorating in
11 2 condition or is, or is likely to become, a public nuisance
11 3 property, and that the parcel is suitable for use as housing
11 4 following rehabilitation or that a parcel to be purchased is a
11 5 vacant lot.
11 6 3. If after the date that a parcel is sold pursuant to
11 7 this chapter, or after the date that a parcel is sold under
11 8 section 446.18, 446.38, or 446.39, the parcel assessed as
11 9 residential property or as commercial multifamily housing
11 10 property is identified as abandoned or as a vacant lot
11 11 pursuant to a verified statement filed with the county
11 12 treasurer by a city or county in the form set forth in
11 13 subsection 2, a city or county may require the assignment of
11 14 the tax sale certificate that had been issued for such parcel
11 15 by paying to the holder of such certificate the total amount
11 16 due on the date the assignment of the certificate is made to
11 17 the county or city and recorded with the county treasurer. If
11 18 a certificate holder fails to assign the certificate of
11 19 purchase to the city or county, the county treasurer is
11 20 authorized to issue a duplicate certificate of purchase, which
11 21 shall take the place of the original certificate, and assign
11 22 the duplicate certificate to the city or county. If the
11 23 certificate is not assigned by the county or city pursuant to
11 24 subsection 4, the county or city, whichever is applicable, is
11 25 liable for the tax sale interest that was due the certificate
11 26 holder pursuant to section 447.1, as of the date of
11 27 assignment.
11 28 4. a. The city or county may assign the tax sale
11 29 certificate obtained pursuant to this section. Persons who
11 30 purchase certificates from the city or county under this
11 31 subsection are liable for the total amount due the certificate
11 32 holder pursuant to section 447.1.
11 33 b. All persons who purchase certificates from the city or
11 34 county under this subsection shall demonstrate the intent to
11 35 rehabilitate the abandoned property for habitation or build a
12 1 residential structure on the vacant lot if the property is not
12 2 redeemed. In the alternative, the county or city may, if
12 3 title to the property has vested in the county or city under
12 4 section 448.1, dispose of the property in accordance with
12 5 section 331.361 or 364.7, as applicable.
12 6 Sec. 18. Section 446.19A, subsection 5, Code 2005, is
12 7 amended by striking the subsection and inserting in lieu
12 8 thereof the following:
12 9 5. For purposes of this section:
12 10 a. "Abandoned property" means a lot or parcel containing a
12 11 building which is used or intended to be used for residential
12 12 purposes and which has remained vacant and has been in
12 13 violation of the housing code of the city in which the
12 14 property is located or of the housing code applicable in the
12 15 county in which the property is located if outside the limits
12 16 of a city, for a period of six consecutive months.
12 17 b. "Vacant lot" means a lot or parcel located in a city or
12 18 outside the limits of a city in a county that contains no
12 19 buildings or structures and that is zoned to allow for
12 20 residential structures.
12 21 Sec. 19. Section 446.37, Code 2005, is amended to read as
12 22 follows:
12 23 446.37 FAILURE TO OBTAIN DEED == CANCELLATION OF SALE.
12 24 After three years have elapsed from the time of any tax
12 25 sale, and action has not been completed during the time which
12 26 qualifies the holder of a certificate to obtain a deed the
12 27 holder of a certificate has not filed an affidavit of service
12 28 of notice of expiration of right of redemption under section
12 29 447.12, the county treasurer shall cancel the sale from the
12 30 county system. However, this if the filing of affidavit of
12 31 service is stayed by operation of law, the time period for the
12 32 filing of the affidavit shall not expire until the later of
12 33 six months after the stay has been lifted or three years from
12 34 the time of the tax sale. This section does not apply to
12 35 certificates of purchase at tax sale which are held by a
13 1 county.
13 2 Sec. 20. Section 447.8, Code 2005, is amended by striking
13 3 the section and inserting in lieu thereof the following:
13 4 447.8 REDEMPTION AFTER DELIVERY OF DEED.
13 5 1. After the delivery of the treasurer's deed, a person
13 6 entitled to redeem a parcel sold at tax sale shall do so only
13 7 by an equitable action in the district court of the county
13 8 where the parcel is located. The action may be maintained
13 9 only by a person who was entitled to redeem the parcel during
13 10 the ninety=day redemption period in section 447.12, except
13 11 that such a person may assign the person's right of redemption
13 12 or right to maintain the action to another person.
13 13 In order to establish the right to redeem, the person
13 14 maintaining the action shall be required to prove to the court
13 15 either that the person maintaining the action or a predecessor
13 16 in interest was not properly served with notice in accordance
13 17 with the requirements of sections 447.9 through 447.12, or
13 18 that the person maintaining the action or a predecessor in
13 19 interest acquired an interest in or possession of the parcel
13 20 during the ninety=day redemption period in section 447.12. A
13 21 person shall not be entitled to maintain such action by
13 22 claiming that a different person was not properly served with
13 23 notice of expiration of right of redemption, if the person
13 24 seeking to maintain the action, or the person's predecessor in
13 25 interest, if applicable, was properly served with the notice.
13 26 A person is not allowed to redeem a parcel sold for delinquent
13 27 taxes in any other manner after the execution and delivery of
13 28 the treasurer's deed.
13 29 2. The person maintaining the action shall name as
13 30 defendants all persons claiming an interest in the parcel
13 31 derived from the tax sale, as shown by the record.
13 32 3. If the court determines that notice was properly
13 33 served, the court shall enter judgment holding that all rights
13 34 of redemption are terminated and that the validity of the tax
13 35 title or purported tax title is conclusively established as a
14 1 matter of law.
14 2 4. If the court determines that notice was not properly
14 3 served and that the person maintaining the action is entitled
14 4 to redeem, the court shall so order. The order shall
14 5 determine the rights, claims, and interests of all parties,
14 6 including liens for taxes and claims for improvements made on
14 7 or to the parcel by the person claiming under the tax title.
14 8 The order shall establish the amount necessary to effect
14 9 redemption. The redemption amount shall include the amount
14 10 for redemption computed in accordance with section 447.1,
14 11 including interest computed up to and including the date of
14 12 payment of the total redemption amount to the clerk of court;
14 13 the amount of all costs added to the redemption amount in
14 14 accordance with section 447.13; and, in the event that the
14 15 person claiming under the tax title has made improvements on
14 16 or to the parcel after the treasurer's deed was issued, an
14 17 amount equal to the value of all such improvements. The order
14 18 shall direct that the person maintaining the action shall pay
14 19 to the clerk of court, within thirty days after the date of
14 20 the order, the total redemption amount established in the
14 21 order.
14 22 5. Upon timely receipt of the payment, the court shall
14 23 enter judgment declaring the treasurer's deed to be invalid
14 24 and determining the resulting rights, claims, and interests of
14 25 all parties to the action. In its judgment, the court shall
14 26 direct the clerk of court to deliver the entire amount of the
14 27 redemption payment to the person who previously claimed title
14 28 under the treasurer's deed.
14 29 If the person maintaining the action fails to timely
14 30 deliver payment of the total redemption amount to the clerk of
14 31 court, the court shall enter judgment holding that all rights
14 32 of redemption are terminated and that the validity of the tax
14 33 title or purported tax title is conclusively established as a
14 34 matter of law. No subsequent action shall be brought to
14 35 challenge the treasurer's deed or to recover the parcel.
15 1 6. If an affidavit is filed pursuant to section 448.15 and
15 2 if the time period for filing a claim under section 448.16
15 3 expires with no claims having been filed, all persons are
15 4 thereafter barred and estopped from commencing an action under
15 5 this section.
15 6 Sec. 21. Section 447.13, Code 2005, is amended to read as
15 7 follows:
15 8 447.13 COST == FEE == REPORT.
15 9 The cost of serving the notice, including the cost of
15 10 sending certified mail notices, and the cost of publication
15 11 under section 447.10, if publication is required, shall be
15 12 added to the amount necessary to redeem. The cost of a record
15 13 search shall also be added to the amount necessary to redeem.
15 14 However, if the certificate holder is other than a county, the
15 15 search must be performed by an abstracter who is an active
15 16 participant in the title guaranty program under section 16.91
15 17 or by an attorney licensed to practice law in the state of
15 18 Iowa, and the amount of the cost of the record search that may
15 19 be added to the amount necessary to redeem shall not exceed
15 20 three hundred dollars.
15 21 PARAGRAPH DIVIDED. The county treasurer shall file the
15 22 proof of service and statement of costs and record these costs
15 23 against the parcel. The certificate holder or the holder's
15 24 agent shall report in writing to the treasurer the amount of
15 25 authorized costs incurred, and the treasurer shall file the
15 26 statement. Costs not filed with the treasurer before a
15 27 redemption is complete shall not be collected by the treasurer
15 28 and may be recovered through a court action against the parcel
15 29 owner by the certificate holder. If the parcel is held by a
15 30 city or county, a city or county agency, or the Iowa finance
15 31 authority, for use in an Iowa homesteading project, whether or
15 32 not the parcel is the subject of a conditional conveyance
15 33 granted under the project, the costs incurred for repairs and
15 34 rehabilitation work required and undertaken in order to make
15 35 the parcel meet applicable building or housing code standards
16 1 shall be added to the amount necessary to redeem.
16 2 For tax sale certificates of purchase held by a county, the
16 3 cost of a record search and the cost of serving the notice,
16 4 including the cost of mailing certified mail notices and the
16 5 cost of publication under section 447.10, if publication is
16 6 required, shall be added to the amount necessary to redeem.
16 7 Sec. 22. Section 448.6, Code 2005, is amended by striking
16 8 the section and inserting in lieu thereof the following:
16 9 448.6 ACTION TO CHALLENGE TREASURER'S DEED.
16 10 1. A deed executed by the county treasurer in conformity
16 11 with the requirements of sections 448.2 and 448.3 shall be
16 12 presumed to effect a valid title conveyance, and the
16 13 treasurer's deed may be challenged only by an equitable action
16 14 in the district court in the county in which the parcel is
16 15 located. If the action seeks an order of the court to allow
16 16 redemption after delivery of the treasurer's deed based on
16 17 improper service of notice of expiration of right of
16 18 redemption, the action shall be brought in accordance with
16 19 section 447.8. If the action is not brought on that basis,
16 20 the action shall be controlled by the provisions of this
16 21 section.
16 22 2. A person shall not be permitted to maintain the action
16 23 unless the person establishes that the person, or the person
16 24 under whom the person claims title, had title to the parcel at
16 25 the time of the sale, or that the title was obtained from the
16 26 United States or this state after the sale, and that all
16 27 amounts due upon the parcel for the applicable tax years have
16 28 been paid by that person or by the person under whom that
16 29 person claims title.
16 30 3. The person maintaining the action shall name as
16 31 defendants the holder of the tax title and the treasurer of
16 32 the county in which the parcel is located.
16 33 4. The person challenging the deed shall be required to
16 34 prove, in order to invalidate the deed, any of the following:
16 35 a. That the parcel was not subject to taxes for the year
17 1 or years named in the deed.
17 2 b. That the taxes had been paid before the sale.
17 3 c. That the parcel had been redeemed from the sale and
17 4 that the redemption was made for the use and benefit of
17 5 persons having the right of redemption.
17 6 d. That there had been an entire omission to list or
17 7 assess the parcel, or to levy the taxes, or to give notice of
17 8 the sale, or to sell the parcel.
17 9 5. If the court determines that the person challenging the
17 10 treasurer's deed has established one or more of the elements
17 11 required under subsection 4 to be proven in order to
17 12 invalidate the deed, the court shall enter judgment declaring
17 13 the deed to be invalid. The judgment shall order the
17 14 treasurer to refund to the person claiming under the tax title
17 15 all sums paid to the treasurer for the purchase of the tax
17 16 sale certificate and for any subsequent taxes paid by the
17 17 certificate holder. If the person claiming under the tax
17 18 title is determined by the court to have made improvements to
17 19 the parcel, the court shall enter judgment in favor of the
17 20 person claiming under the tax title for an amount equal to the
17 21 value of such improvements made after the treasurer's deed was
17 22 issued, and such judgment shall be a lien on the parcel until
17 23 paid.
17 24 6. If an affidavit is filed pursuant to section 448.15,
17 25 and if the time period for filing a claim under section 448.16
17 26 expires with no claims having been filed, all persons are
17 27 thereafter barred and estopped from commencing an action under
17 28 this section.
17 29 Sec. 23. Section 448.12, Code 2005, is amended to read as
17 30 follows:
17 31 448.12 LIMITATION OF ACTIONS.
17 32 An action under section 447.8 or 448.6 or for the recovery
17 33 of a parcel sold for the nonpayment of taxes shall not be
17 34 brought after three years from the execution and recording of
17 35 the county treasurer's deed, unless the owner is, at the time
18 1 of the sale, a minor, a person with mental illness, or an
18 2 inmate in an adult correctional institution, in which case the
18 3 action must be brought within three years after the disability
18 4 is removed.
18 5 This section, as amended by 1991 Iowa Acts, chapter 191,
18 6 section 111, is effective for parcels sold at tax sales
18 7 occurring on or after April 1, 1992, and for disabilities
18 8 removed on or after April 1, 1992. For tax sales occurring
18 9 prior to April 1, 1992, the provisions of this section in
18 10 effect on the date of the tax sale apply.
18 11 Sec. 24. Section 448.15, Code 2005, is amended to read as
18 12 follows:
18 13 448.15 AFFIDAVIT BY TAX=TITLE HOLDER.
18 14 1. Immediately After taking possession of the parcel,
18 15 after the issuance and recording of a tax deed or an
18 16 instrument purporting to be a tax deed issued by a county
18 17 treasurer of this state, the then owner or holder of the title
18 18 or purported title may file with the county recorder of the
18 19 county in which the parcel is located an affidavit
18 20 substantially in the following form:
18 21 State of Iowa, )
18 22 ...... County. ) ss.
18 23 I, ........., being first duly sworn, on oath depose and
18 24 say that on ...... (date) the county treasurer issued a tax
18 25 deed to ...... (grantee) for
18 26 the following described parcel: ..............................
18 27 ..............................................................;
18 28 that the tax deed was filed for record in the office of the
18 29 county recorder of ...... county, Iowa, on ...... (date), and
18 30 appears in the records of the office in ...... county as
18 31 recorded in Book .... Page .... of the ...... Records; and
18 32 that ...... claims title to an undivided .... percent interest
18 33 in the parcel by virtue of the tax deed, or purported tax
18 34 title.
18 35 Any person claiming any right, title, or interest in or to
19 1 the parcel adverse to the title or purported title by virtue
19 2 of the tax deed referred to shall file a claim with the
19 3 recorder of the county where the parcel is located, within one
19 4 hundred twenty days after the filing of this affidavit, the
19 5 claim to set forth the nature of the interest, also the time
19 6 and manner in which the interest claimed was acquired. A
19 7 person who files such a claim shall commence an action to
19 8 enforce the claim within sixty days after the filing of the
19 9 claim. If a claimant fails to file a claim within one hundred
19 10 twenty days after the filing of this affidavit, or files a
19 11 claim but fails to commence an action to enforce the claim
19 12 within sixty days after the filing of the claim, the claim
19 13 thereafter shall be forfeited and cancelled without any
19 14 further notice or action, and the claimant thereafter shall be
19 15 forever barred and estopped from having or claiming any right,
19 16 title, or interest in the parcel adverse to the tax title or
19 17 purported tax title.
19 18 .............................
19 19 Subscribed and sworn to before me this .... day of ......
19 20 (month), ... (year).
19 21 .............................
19 22 Notary Public in and for
19 23 .............. County, Iowa.
19 24 2. An owner or holder of a title or purported title who
19 25 has entered into a lease agreement conveying possessory rights
19 26 in the parcel to a tenant in possession shall be deemed to be
19 27 in possession for purposes of filing an affidavit under this
19 28 section.
19 29 3. For purposes of this section, if a tax deed or
19 30 instrument purporting to be a tax deed has been issued to
19 31 convey an undivided interest in the parcel of less than one
19 32 hundred percent, the owner or holder of the tax title or
19 33 purported tax title shall be deemed to be in possession and
19 34 entitled to file the affidavit in subsection 1. However,
19 35 before filing the affidavit, the owner or holder of the tax
20 1 title or purported tax title shall serve a copy of the
20 2 affidavit on any other person in possession of the parcel by
20 3 sending a copy of the affidavit by both certified mail to the
20 4 person at the address of the parcel or at the person's last
20 5 known address if different from the address of the parcel.
20 6 Such service is deemed completed when the affidavit mailed by
20 7 certified mail is postmarked for delivery. An affidavit of
20 8 service shall be attached to, and filed with, the affidavit in
20 9 subsection 1. The affidavit of service shall include the
20 10 names and addresses of all persons served and the time of
20 11 mailing.
20 12 Sec. 25. Section 448.16, Code 2005, is amended to read as
20 13 follows:
20 14 448.16 CLAIMS ADVERSE TO TAX TITLE BARRED.
20 15 1. When the affidavit described in section 448.15 is filed
20 16 it shall be notice to all persons, and any person claiming any
20 17 right, title, or interest in or to the parcel described
20 18 adverse to the title or purported title by virtue of the tax
20 19 deed referred to, shall file a claim with the county recorder
20 20 of the county in which the parcel is located within one
20 21 hundred twenty days after the filing of the affidavit, which
20 22 claim shall set forth the nature of the interest, the time
20 23 when and the manner in which the interest was acquired.
20 24 2. At the expiration of the period of one hundred twenty
20 25 days, if no such claim has been filed, the validity of the tax
20 26 title or purported tax title shall be conclusively established
20 27 as a matter of law, and all persons shall thereafter be
20 28 forever barred and estopped from having or claiming any right,
20 29 title, or interest in the parcel adverse to the tax title or
20 30 purported tax title, and no including but not limited to any
20 31 claim alleging improper service of notice of expiration of
20 32 right of redemption. An action shall not thereafter be
20 33 brought to recover the parcel, and the then tax=title owner or
20 34 owner of the purported challenge the tax deed or tax title
20 35 shall also have acquired title to the parcel by adverse
21 1 possession.
21 2 3. An action to enforce a claim filed under subsection 1
21 3 shall be commenced within sixty days after the date of filing
21 4 the claim. The action may be commenced by the claimant, or a
21 5 person under whom the claimant claims title, under either
21 6 section 447.8 or 448.6. If an action by the claimant, or such
21 7 other person, is not filed within sixty days after the filing
21 8 of the claim, the claim thereafter shall be forfeited and
21 9 cancelled without any further notice or action, and the
21 10 claimant, or the person under whom the claimant claims title,
21 11 thereafter shall be forever barred and estopped from having or
21 12 claiming any right, title, or interest in the parcel adverse
21 13 to the tax title or purported tax title.
21 14 Sec. 26. Section 448.7, Code 2005, is repealed.
21 15 Sec. 27. EFFECTIVE DATE AND APPLICABILITY DATE PROVISIONS.
21 16 1. This Act, being deemed of immediate importance, takes
21 17 effect upon enactment.
21 18 2. The section of the Act amending section 446.37 applies
21 19 to tax sale certificates of purchase in existence before the
21 20 effective date of the Act, notwithstanding section 447.14, and
21 21 to tax sale certificates of purchase issued on or after the
21 22 effective date of the Act.
21 23 3. The remainder of this Act applies to parcels sold at
21 24 tax sales occurring on or after June 1, 2005.
21 25 EXPLANATION
21 26 This bill makes various changes relating to delinquent
21 27 property taxes and other duties of county treasurers relating
21 28 to payment of property taxes and special assessments and
21 29 issuance of certain types of motor vehicle registrations and
21 30 certificates of title.
21 31 The bill allows an application for registration and
21 32 issuance of title for mobile homes or manufactured homes from
21 33 the county treasurer of the county where the home is located
21 34 in addition to the county where the owner resides. The bill
21 35 also provides that if title in a mobile home or manufactured
22 1 home is transferred by operation of law, the new registration
22 2 and certificate of title shall be applied for from the county
22 3 treasurer of the county where the home is located.
22 4 The bill provides that a lienholder who applies for a
22 5 replacement certificate of title is not subject to the five=
22 6 day waiting period.
22 7 Current law provides that a county treasurer may require a
22 8 payor to make payment by electronic transfer of funds if the
22 9 payment totals $100,000 or more. The bill lowers this amount
22 10 to $25,000 and requires that payment be made through the
22 11 county treasurer's authorized website.
22 12 The bill allows a county treasurer to treat payment made by
22 13 electronic funds transfer the same as a paper check for
22 14 purposes of charging a $30 surcharge, and providing notice
22 15 that a surcharge will be charged, for those electronic funds
22 16 transfers that fail to clear because of insufficient funds.
22 17 The bill adds to the Code sections on payment of special
22 18 assessments, cost of weed destruction, and secondary road
22 19 assessments the same payment date provisions as are in the
22 20 Code for payment of property taxes. These payments are
22 21 collected in the same manner as property taxes.
22 22 The bill removes the minimum payment requirement for
22 23 partial payment of mobile/manufactured home taxes and ordinary
22 24 property taxes and provides instead that any partial payment
22 25 must equal or exceed the interest, fees, and costs accrued on
22 26 the installment and the payment made shall first be applied
22 27 toward any interest, fees, and costs accrued before being
22 28 applied to the tax due.
22 29 The bill provides that the reasonable fee that may be
22 30 charged by the treasurer to certain persons or entities that
22 31 request a property tax statement does not apply when the
22 32 requestor is a lessee or contract purchaser of the property.
22 33 The bill also provides that the titleholder of property may
22 34 make written request to the county treasurer to deliver the
22 35 property tax statement to another person in lieu of delivery
23 1 to the titleholder and no fee shall be charged by the
23 2 treasurer for doing so.
23 3 The bill provides that the treasurer may charge a fee for
23 4 processing a property tax payment made by mortgagees and
23 5 certain financial institutions if the payment is made by any
23 6 other means than through the treasurer's authorized website.
23 7 The bill provides that when a tax sale purchaser designates
23 8 a percentage of the parcel for which the purchaser will pay
23 9 the full amount of delinquent taxes, that percentage shall not
23 10 be less than one percent.
23 11 The bill amends the section of the Code which allows a
23 12 county to adopt an ordinance authorizing the county and cities
23 13 in the county to bid on and purchase delinquent taxes on
23 14 abandoned property and to assign the tax sale certificate to a
23 15 person who intends to rehabilitate the property for
23 16 habitation. The bill adds vacant lots to the kind of property
23 17 on which a city or county may bid and defines "vacant lot" as
23 18 a lot or parcel containing no buildings or structures but
23 19 which is zoned to allow for residential structures. The bill
23 20 also strikes the internal reference to Code section 657A.1 to
23 21 "abandoned property" and defines the term. The bill provides
23 22 that if the holder of a tax sale certificate of purchase for
23 23 abandoned property or a vacant lot refuses to assign the
23 24 certificate to a city or county when such a request is made,
23 25 the county treasurer may issue a duplicate certificate of
23 26 purchase and assign the duplicate to the city or county.
23 27 The bill provides that if, within three years of the tax
23 28 sale, a tax sale certificate holder has not filed an affidavit
23 29 of service of notice of expiration of right of redemption, the
23 30 county treasurer shall cancel the tax sale from the system.
23 31 If the filing of the affidavit has been stayed by operation of
23 32 law, the time period is the later of six months after the stay
23 33 has been lifted or three years. This portion of the bill
23 34 applies to tax sale certificates in existence on the effective
23 35 date of the bill and to those issued on or after the effective
24 1 date.
24 2 The bill rewrites the section of the Code relating to
24 3 redemption of a parcel sold at tax sale after delivery of the
24 4 treasurer's deed to the tax sale certificate holder. The
24 5 section is written to specify that an action to allow
24 6 redemption of a parcel may only be brought by a person who had
24 7 the right to redeem the parcel prior to execution of the
24 8 treasurer's deed or a person to whom that person assigned that
24 9 right. The rewritten section further provides that in order
24 10 to establish the right to redeem after delivery of a
24 11 treasurer's deed, the person bringing the action is required
24 12 to prove that notice of expiration of right to redemption was
24 13 not served upon the person by the certificate holder or that
24 14 the person acquired the interest in the parcel after the
24 15 affidavit was served on another person. The bill provides
24 16 that if the court determines that the person has the right to
24 17 redeem the parcel, the redemption amount shall include the
24 18 value of improvements made by the treasurer's deed holder
24 19 after the deed was issued.
24 20 The bill provides that the cost of a record search and the
24 21 cost of sending certified mail notices relating to redemption
24 22 of a parcel shall be included in the costs that must be paid
24 23 in order to redeem. Currently, those costs are included only
24 24 if the certificate holder is a county. However, the bill
24 25 places limitations on the costs of a record search that may be
24 26 recovered if the certificate holder is other than a county.
24 27 The bill rewrites into one section the two sections of the
24 28 Code relating to an action brought to challenge a treasurer's
24 29 deed. The bill retains the bases for challenging a
24 30 treasurer's deed that is in current Code. The bill changes
24 31 the time when a treasurer's deed holder must file the
24 32 affidavit putting people on notice that the deed has been
24 33 issued to when the deed holder takes possession of the parcel,
24 34 rather than immediately after the deed is issued and recorded.
24 35 The bill requires any person seeking to challenge the deed to
25 1 file a claim with the county recorder and to bring the action
25 2 within 60 days of filing the claim. If no claim was filed, or
25 3 if no action was brought on a claim, within the 60=day time
25 4 period, the person is barred from bringing a claim. If the
25 5 court finds in favor of the person challenging the deed, the
25 6 court may order that the person pay to the holder of the deed
25 7 the cost of improvements made after the deed was issued.
25 8 The bill takes effect upon enactment and, with one
25 9 exception, applies to parcels sold at tax sales occurring on
25 10 or after June 1, 2005.
25 11 LSB 1709XS 81
25 12 sc:rj/gg/14