House File 284 - Introduced HOUSE FILE 284 BY WILLEMS A BILL FOR An Act relating to the method of collecting property taxes by a 1 county treasurer. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1460HH (8) 84 md/sc

H.F. 284 Section 1. Section 435.24, subsection 6, paragraph a, Code 1 2011, is amended to read as follows: 2 a. As an alternative to the semiannual or annual payment of 3 taxes, the county treasurer may shall accept partial payments 4 of current year home taxes and shall implement a system or 5 modify the current payment system to accept monthly payments of 6 current year home taxes . The treasurer shall transfer amounts 7 from each taxpayer’s account to be applied to each semiannual 8 tax installment prior to the delinquency dates specified in 9 section 445.37 and the amounts collected shall be apportioned 10 by the tenth of the month following transfer. If, prior to the 11 due date of each semiannual installment, the account balance is 12 insufficient to fully satisfy the installment, the treasurer 13 shall transfer and apply the entire account balance, leaving an 14 unpaid balance of the installment. Interest shall attach on 15 the unpaid balance in accordance with section 445.39 . Unless 16 funds sufficient to fully satisfy the delinquency are received, 17 the treasurer shall collect the unpaid balance as provided 18 in sections 445.3 and 445.4 and chapter 446 . Any remaining 19 balance in a taxpayer’s account in excess of the amount needed 20 to fully satisfy an installment shall remain in the account 21 to be applied toward the next semiannual installment. Any 22 interest income derived from the account shall be deposited 23 in the county’s general fund to cover administrative costs. 24 The treasurer shall send a notice with the tax statement or 25 by separate mail to each taxpayer stating that, upon request 26 to the treasurer, the taxpayer may make partial payments of 27 current year home taxes. 28 Sec. 2. Section 445.36A, subsection 1, Code 2011, is amended 29 to read as follows: 30 1. As an alternative to the semiannual or annual payment 31 of taxes, the county treasurer may shall accept partial 32 payments of taxes and shall implement a system or modify the 33 current payment system to accept monthly payments of current 34 year home taxes . The treasurer shall transfer amounts from 35 -1- LSB 1460HH (8) 84 md/sc 1/ 3

H.F. 284 each taxpayer’s account to be applied to each semiannual tax 1 installment prior to the delinquency dates specified in section 2 445.37 and the amounts collected shall be apportioned by the 3 tenth of the month following transfer. If, prior to the due 4 date of each semiannual installment, the account balance is 5 insufficient to fully satisfy the installment, the treasurer 6 shall transfer and apply the entire account balance, leaving an 7 unpaid balance of the installment. Interest shall attach on 8 the unpaid balance in accordance with section 445.39 . Unless 9 funds sufficient to fully satisfy the delinquency are received, 10 the treasurer shall collect the unpaid balance as provided 11 in sections 445.3 and 445.4 and chapter 446 . Any remaining 12 balance in a taxpayer’s account in excess of the amount needed 13 to fully satisfy an installment shall remain in the account 14 to be applied toward the next semiannual installment. Any 15 interest income derived from the account shall be deposited 16 in the county’s general fund to cover administrative costs. 17 The treasurer shall send a notice with the tax statement or by 18 separate mail to each taxpayer stating that, upon request to 19 the treasurer, the taxpayer may make partial payments of taxes. 20 Sec. 3. IMPLEMENTATION OF ACT. Section 25B.2, subsection 21 3, shall not apply to this Act. 22 EXPLANATION 23 Current law allows county treasurers to accept partial 24 payments for the current year property taxes as an alternative 25 to the semiannual or annual payment of property taxes under 26 Code sections 435.24 and 445.36A. This bill requires county 27 treasurers to accept such partial payments and requires 28 implementation of a system or modification of the current 29 payment system to accept monthly payments of current year home 30 taxes. 31 The bill may include a state mandate as defined in Code 32 section 25B.3. The bill makes inapplicable Code section 25B.2, 33 subsection 3, which would relieve a political subdivision from 34 complying with a state mandate if funding for the cost of 35 -2- LSB 1460HH (8) 84 md/sc 2/ 3

H.F. 284 the state mandate is not provided or specified. Therefore, 1 political subdivisions are required to comply with any state 2 mandate included in the bill. 3 -3- LSB 1460HH (8) 84 md/sc 3/ 3