House File 2099 - Introduced HOUSE FILE 2099 BY FORRISTALL A BILL FOR An Act relating to the method of collecting property taxes by a 1 county treasurer and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5643YH (3) 85 md/sc

H.F. 2099 Section 1. Section 435.24, subsection 6, paragraph a, Code 1 2014, 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 payment system 5 or modify the current system to accept monthly payments of 6 current year home taxes, including payments using automatic 7 direct withdrawal from a taxpayer’s bank account if authorized 8 in writing by the taxpayer . The treasurer shall transfer 9 amounts from each taxpayer’s account to be applied to each 10 semiannual tax installment prior to the delinquency dates 11 specified in section 445.37 and the amounts collected shall 12 be apportioned by the tenth of the month following transfer. 13 If, prior to the due date of each semiannual installment, 14 the account balance is insufficient to fully satisfy the 15 installment, the treasurer shall transfer and apply the entire 16 account balance, leaving an unpaid balance of the installment. 17 Interest shall attach on the unpaid balance in accordance with 18 section 445.39 . Unless funds sufficient to fully satisfy the 19 delinquency are received, the treasurer shall collect the 20 unpaid balance as provided in sections 445.3 and 445.4 and 21 chapter 446 . Any remaining balance in a taxpayer’s account in 22 excess of the amount needed to fully satisfy an installment 23 shall remain in the account to be applied toward the next 24 semiannual installment. Any interest income derived from the 25 account shall be deposited in the county’s general fund to 26 cover administrative costs. The treasurer shall send a notice 27 with the tax statement or by separate mail to each taxpayer 28 stating that, upon request to the treasurer, the taxpayer may 29 make partial payments of current year home taxes. 30 Sec. 2. Section 445.36A, subsection 1, Code 2014, is amended 31 to read as follows: 32 1. As an alternative to the semiannual or annual payment of 33 taxes, the county treasurer may shall accept partial payments 34 of taxes and shall implement a payment system or modify the 35 -1- LSB 5643YH (3) 85 md/sc 1/ 3

H.F. 2099 current system to accept monthly payments of current year 1 taxes, including payments using automatic direct withdrawal 2 from a taxpayer’s bank account if authorized in writing by 3 the taxpayer . The treasurer shall transfer amounts from 4 each taxpayer’s account to be applied to each semiannual tax 5 installment prior to the delinquency dates specified in section 6 445.37 and the amounts collected shall be apportioned by the 7 tenth of the month following transfer. If, prior to the due 8 date of each semiannual installment, the account balance is 9 insufficient to fully satisfy the installment, the treasurer 10 shall transfer and apply the entire account balance, leaving an 11 unpaid balance of the installment. Interest shall attach on 12 the unpaid balance in accordance with section 445.39 . Unless 13 funds sufficient to fully satisfy the delinquency are received, 14 the treasurer shall collect the unpaid balance as provided 15 in sections 445.3 and 445.4 and chapter 446 . Any remaining 16 balance in a taxpayer’s account in excess of the amount needed 17 to fully satisfy an installment shall remain in the account 18 to be applied toward the next semiannual installment. Any 19 interest income derived from the account shall be deposited 20 in the county’s general fund to cover administrative costs. 21 The treasurer shall send a notice with the tax statement or by 22 separate mail to each taxpayer stating that, upon request to 23 the treasurer, the taxpayer may make partial payments of taxes. 24 Sec. 3. IMPLEMENTATION OF ACT. Section 25B.2, subsection 25 3, shall not apply to this Act. 26 Sec. 4. APPLICABILITY. This Act applies to property taxes 27 due and payable in fiscal years beginning on or after July 1, 28 2015. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 Current law allows county treasurers to accept partial 33 payments for the current year property taxes as an alternative 34 to the semiannual or annual payment of property taxes under 35 -2- LSB 5643YH (3) 85 md/sc 2/ 3

H.F. 2099 Code sections 435.24 (mobile and manufactured homes) and 1 445.36A. This bill requires county treasurers to accept 2 partial payments and requires the implementation of a payment 3 system or modification of the current system to accept monthly 4 payments of current year taxes, including payments using 5 automatic direct withdrawal from a taxpayer’s bank account if 6 authorized in writing by the taxpayer. 7 The bill may include a state mandate as defined in Code 8 section 25B.3. The bill makes inapplicable Code section 25B.2, 9 subsection 3, which would relieve a political subdivision from 10 complying with a state mandate if funding for the cost of 11 the state mandate is not provided or specified. Therefore, 12 political subdivisions are required to comply with any state 13 mandate included in the bill. 14 This bill applies to property taxes due and payable in fiscal 15 years beginning on or after July 1, 2015. 16 -3- LSB 5643YH (3) 85 md/sc 3/ 3