Senate Study Bill 1178 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WILHELM) A BILL FOR An Act relating to property taxes and fees by modifying 1 provisions relating to receipts for the payment of property 2 taxes and provisions relating to delinquent rates and 3 charges and by specifying certain dates for notices and 4 delinquency. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2690SC (5) 84 md/sc

S.F. _____ Section 1. Section 358.20, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 1A. a. If the delinquent rates or charges 3 were incurred prior to the date a transfer of the property 4 or premises in fee simple is filed with the county recorder 5 and such delinquencies were not certified to the county 6 treasurer prior to such date, the delinquent rates or charges 7 are not eligible to be certified to the county treasurer. If 8 certification of such delinquent rates or charges is attempted 9 subsequent to the date a transfer of the property or premises 10 in fee simple is filed with the county recorder, the county 11 treasurer shall return the certification to the sanitary 12 district attempting certification along with a notice stating 13 that the delinquent rates or charges cannot be made a lien 14 against the property or premises. 15 b. If the sanitary district is prohibited under paragraph 16 “a” from certifying delinquent rates or charges against the 17 property or premises served by the services of the sanitary 18 district, the sanitary district may certify the delinquent 19 rates or charges against any other property or premises located 20 in this state and owned by the account holder in whose name the 21 rates or charges were incurred. 22 Sec. 2. Section 445.5, subsection 6, Code 2011, is amended 23 to read as follows: 24 6. The county treasurer shall deliver to the taxpayer a 25 receipt stating the year of tax, date of payment, a description 26 of the parcel, and the amount of taxes, interest, fees, and 27 costs paid except when payment of taxes is made by check, then 28 a receipt shall be issued only upon request when payment is 29 made by cash tender . A receipt for other payment tender types 30 shall only be delivered upon request. The receipt shall be 31 in full of the first half, second half, or full year amounts 32 unless a payment is made under section 445.36A or 435.24 , 33 subsection 6 . 34 Sec. 3. Section 445.36, subsection 3, Code 2011, is amended 35 -1- LSB 2690SC (5) 84 md/sc 1/ 4

S.F. _____ to read as follows: 1 3. If an installment of taxes, or an annual payment in the 2 case of special assessments, or payment in full in the case of 3 rates or charges, is delinquent and not paid as of February 4 November 1 of the fiscal year in which the amounts are due , the 5 treasurer shall notify the taxpayer of the delinquency and the 6 due date for the second installment. Failure to receive notice 7 is not a defense to the payment of the total amount due. 8 Sec. 4. Section 468.57, subsection 2, unnumbered paragraph 9 1, Code 2011, is amended to read as follows: 10 To pay the assessments in not less than ten nor more than 11 twenty equal installments, with the number of payments and 12 interest rate determined by the board, notwithstanding chapter 13 74A . The first installment of each assessment, or the total 14 amount if less than one hundred dollars, is due and payable 15 on July 1 next succeeding the date of the levy, unless the 16 assessment is filed with the county treasurer after May 31 17 in any year. The first installment shall bear interest on 18 the whole unpaid assessment from the date of the levy as set 19 by the board to the first day of December following the due 20 date. The succeeding annual installments, with interest on the 21 whole unpaid amount, to the first day of December following the 22 due date, are respectively due on July 1 annually, and must 23 be paid at the same time and in the same manner as the first 24 semiannual payment of ordinary taxes. All future installments 25 of an assessment may be paid on any date by payment of the then 26 outstanding balance plus interest to the next December 1, or 27 additional annual installments may be paid after the current 28 installment has been paid before December 1 without interest. 29 A payment must be for the full amount of the next installment. 30 If installments remain to be paid, the next annual installment 31 with interest added to December 1 will be due. After December 32 1, if a drainage assessment is not delinquent, a property owner 33 may pay one-half or all of the next annual installment of 34 principal and interest of a drainage assessment prior to the 35 -2- LSB 2690SC (5) 84 md/sc 2/ 4

S.F. _____ delinquency date of the installment. When the next installment 1 has been paid in full, successive principal installments may 2 be prepaid. The county treasurer shall accept the payments 3 of the drainage assessment, and shall credit the next annual 4 installment or future installments of the drainage assessment 5 to the extent of the payment or payments, and shall remit the 6 payments to the drainage fund. If a property owner elects 7 to pay one or more principal installments in advance, the 8 pay schedule shall be advanced by the number of principal 9 installments prepaid. Each installment of an assessment with 10 interest on the unpaid balance is delinquent from October 1 11 after its due date , including those instances . However, when 12 the last day of September is a Saturday or Sunday, and bears 13 that amount shall be delinquent from the second business day of 14 October. Taxes assessed pursuant to this chapter which become 15 delinquent shall bear the same delinquent interest as ordinary 16 taxes. When collected, the interest must be credited to the 17 same drainage fund as the drainage special assessment. 18 EXPLANATION 19 This bill amends Code section 358.20, relating to sanitary 20 districts, by establishing requirements and procedures for 21 delinquent rates and charges that are charged by the sanitary 22 district. The bill specifies conditions under which delinquent 23 rates and charges may not be certified by the county treasurer 24 as a lien against the property or premises and specifies how 25 the sanitary district may certify and collect such delinquent 26 rates or charges. The requirements and procedures in the bill 27 are similar to those for certain sewer, storm water, sewage 28 treatment, solid waste collection, and water services provided 29 by a city utility or city enterprise under Code section 384.84. 30 The bill amends Code chapter 445, relating to the collection 31 of property taxes, by specifying that the county treasurer 32 must deliver to the taxpayer a receipt when payment is made 33 by cash tender. Under the bill, the county treasurer is only 34 required to provide a receipt for other payment tender types 35 -3- LSB 2690SC (5) 84 md/sc 3/ 4

S.F. _____ upon request. 1 Current Code section 445.36, provides that if an installment 2 of taxes, an annual payment of special assessments, or a 3 payment in full of rates or charges, is delinquent and not paid 4 as of February 1, the county treasurer is required to notify 5 the taxpayer of the delinquency and the due date for the second 6 installment. The bill changes the date from February 1 to 7 November 1 of the fiscal year in which the amounts are due. 8 Current Code section 468.57, relating to the payment of 9 certain levee and drainage district assessments, specifies that 10 each installment of an assessment is delinquent from October 11 1 after its due date including when the last day of September 12 is a Saturday or Sunday. The bill amends that provision to 13 specify that if the last day of September is a Saturday or 14 Sunday, the amount is delinquent from the second business day 15 of October. 16 -4- LSB 2690SC (5) 84 md/sc 4/ 4