Senate File 172 - Introduced
SENATE FILE
BY JOHNSON
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to condemnation proceedings.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 6A.22 PROCEEDINGS TO ENJOIN ==
1 2 COSTS.
1 3 The cost of a proceeding brought by a landowner to enjoin
1 4 the exercise of power granted under this chapter shall be paid
1 5 by the party seeking condemnation.
1 6 Sec. 2. Section 6B.21, Code 2005, is amended to read as
1 7 follows:
1 8 6B.21 APPEALS == HOW DOCKETED AND TRIED.
1 9 1. The appeal shall be docketed in the name of the person
1 10 appealing and all other interested parties to the action shall
1 11 be defendants. In the event the condemner and the condemnee
1 12 appeal, the appeal shall be docketed in the name of the
1 13 appellant which filed the application for condemnation and all
1 14 other parties to the action shall be defendants. The appeal
1 15 shall be tried as in an action by ordinary proceedings.
1 16 2. Records of the compensation commission proceedings are
1 17 admissible on appeal, including the appraisement of damages,
1 18 matters considered by the commission, other comparable final
1 19 condemnation awards or purchases under threat of condemnation,
1 20 replacement cost, and the availability of replacement
1 21 property.
1 22 Sec. 3. Section 6B.25, unnumbered paragraph 1, Code 2005,
1 23 is amended to read as follows:
1 24 Upon the filing of the commissioners' report with the
1 25 sheriff, the applicant may deposit with the sheriff the amount
1 26 assessed in favor of a claimant, and the applicant, except as
1 27 otherwise provided, may take possession of the land condemned
1 28 and proceed with the improvement. The amount deposited shall
1 29 include interest from the date of the award, calculated in the
1 30 same manner as provided in section 6B.24. An appeal from the
1 31 assessment does not affect the right, except as otherwise
1 32 provided. Prior to expiration of the time provided for
1 33 appeal, the property owner may apply to the district court for
1 34 release of that part of the damages deposited which the court
1 35 finds proper. If there is not an appeal by any party, the
2 1 property owner shall be entitled to the whole of the damages
2 2 awarded. Upon appeal from the commissioners' award of
2 3 damages, the district court may direct that the part of the
2 4 amount of damages deposited with the sheriff, as it finds just
2 5 and proper, be paid to the claimant. Funds released by order
2 6 of the court shall be made available immediately to the
2 7 property owner. If upon trial of the appeal a lesser amount
2 8 is awarded, the difference between the amount so awarded and
2 9 the amount paid shall be repaid by the person to whom it was
2 10 paid and upon failure to make the repayment the party shall
2 11 have judgment entered against the person who received the
2 12 excess payment. Title to the property or the interests in
2 13 property passes to the applicant when damages have been
2 14 finally determined and paid.
2 15 Sec. 4. Section 6B.33, Code 2005, is amended to read as
2 16 follows:
2 17 6B.33 COSTS AND ATTORNEY FEES.
2 18 The applicant shall pay all costs of the assessment made by
2 19 the commissioners and reasonable attorney fees and costs
2 20 incurred by the condemnee as determined by the commissioners,
2 21 including the cost of appraisals and expert witnesses, if the
2 22 award of the commissioners exceeds one hundred ten percent of
2 23 the final offer of the applicant prior to condemnation. The
2 24 condemnee shall submit an application for fees and costs prior
2 25 to adjournment of the final meeting of the compensation
2 26 commission held on the matter. The applicant shall file with
2 27 the sheriff an affidavit setting forth the most recent offer
2 28 made to the person whose property is sought to be condemned.
2 29 Members of such commissions shall receive a per diem of two
2 30 hundred dollars and actual and necessary expenses incurred in
2 31 the performance of their official duties. The applicant shall
2 32 reimburse the county sheriff for the per diem and expense
2 33 amounts paid by the sheriff to the members. The applicant
2 34 shall reimburse the owner for the expenses the owner incurred
2 35 for recording fees, penalty costs for full or partial
3 1 prepayment of any preexisting recorded mortgage entered into
3 2 in good faith encumbering the property, and for similar
3 3 expenses incidental to conveying the property to the
3 4 applicant. The applicant shall also pay all costs occasioned
3 5 by the appeal, including the costs of appraisals and expert
3 6 witnesses, and reasonable attorney fees to be taxed by the
3 7 court, unless on the trial thereof the same or a lesser amount
3 8 of damages is awarded than was allowed by the tribunal from
3 9 which the appeal was taken.
3 10 Sec. 5. Section 6B.34, Code 2005, is amended to read as
3 11 follows:
3 12 6B.34 REFUSAL TO PAY FINAL AWARD.
3 13 Should If the applicant dismisses the proceedings at any
3 14 time after filing the application, or if the applicant decline
3 15 declines, at any time after an appeal is taken as provided in
3 16 section 6B.18, to take the property and pay the damages
3 17 awarded, the applicant shall pay, in addition to the costs,
3 18 including the cost of appraisals and expert witnesses, and
3 19 damages actually suffered by the landowner, and reasonable
3 20 attorney fees to be taxed by the court.
3 21 Sec. 6. Section 6B.53, Code 2005, is amended to read as
3 22 follows:
3 23 6B.53 PROCEDURE FOR HOMESTEADING PROJECTS.
3 24 If the purpose of condemnation is to obtain property for
3 25 use as part of an Iowa homesteading project under section
3 26 16.14, the application required under section 6B.3 may contain
3 27 a verified statement that the property sought to be condemned
3 28 is abandoned and deteriorating in condition, or is inhabited
3 29 but is not safe for human habitation, or is or is likely to
3 30 become a public nuisance, and that the property is suitable
3 31 for use and is to be used in an Iowa homesteading project.
3 32 Other information may be included. The statement must be
3 33 verified by the Iowa finance authority or by a local agency
3 34 authorized under rules of the authority. Upon proper filing of
3 35 the statement and the report of the condemnation commission
4 1 assessing damages, and deposit of the amount assessed,
4 2 including interest as required under section 6B.25, with the
4 3 sheriff, the applicant for condemnation may take possession as
4 4 provided in section 6B.25 if the property is abandoned, or may
4 5 take steps to obtain possession after ninety days from the
4 6 date of the filing of the statement, report, and deposit, if
4 7 the property is inhabited.
4 8 Sec. 7. Section 422.7, Code 2005, is amended by adding the
4 9 following new subsection:
4 10 NEW SUBSECTION. 44. Where the adjusted gross income
4 11 includes the gain realized when property of the taxpayer is
4 12 converted as a result of condemnation, an additional deduction
4 13 shall be allowed to the extent the gain is recognized under
4 14 section 1033 of the Internal Revenue Code.
4 15 Sec. 8. RETROACTIVE APPLICABILITY. Section 7 of this Act,
4 16 amending section 422.7, is retroactively applicable to January
4 17 1, 2005, and is applicable for tax years beginning on and
4 18 after that date.
4 19 EXPLANATION
4 20 This bill relates to condemnation proceedings.
4 21 The bill provides in Code section 6A.22 that a party
4 22 seeking condemnation must pay the cost of a proceeding to
4 23 enjoin the condemnation.
4 24 The bill provides in Code section 6B.21 that a record of
4 25 the compensation commission proceedings, including the
4 26 appraisement of damages, matters considered by the commission,
4 27 other comparable final condemnation awards or purchases under
4 28 threat of condemnation, replacement cost, and the availability
4 29 of replacement property is admissible on appeal.
4 30 The bill provides in Code section 6B.25 that when a party's
4 31 application for condemnation has been approved, such party may
4 32 deposit with the sheriff the amount of damages awarded with
4 33 interest from the date of the award. The bill also provides
4 34 that when the court orders the release of such funds awarded,
4 35 the sheriff shall make the funds immediately available to the
5 1 property owner.
5 2 Code sections 6B.33 and 6B.34 are amended to specify that
5 3 costs assigned to a party seeking condemnation include the
5 4 cost of appraisals and expert witnesses. Also, the bill
5 5 provides that if the party seeking condemnation dismisses the
5 6 proceedings after filing an application for condemnation, such
5 7 party shall pay costs.
5 8 The bill provides a taxpayer, whose property is converted
5 9 as a result of condemnation, a tax deduction for the gain
5 10 realized to the extent the gain is recognized under the
5 11 Internal Revenue Code. The tax deduction applies
5 12 retroactively to January 1, 2005.
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