HF 369 (LSB 2285YH (3) 85)

HOUSE FILE 369

BY  HAGENOW

A BILL FOR

An Act relating to the procedure for tax sales and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 446.16, subsections 1 and 4, Code 2013, are amended to read as follows:
   1.
  a.  Each parcel offered for sale shall first be offered for sale to those registered bidders under this section who are individual residents of this state or that are domestic business entities as defined in section 501A.102. The individual resident or domestic business entity who offers to pay the total amount due, which is a lien on any parcel, for the smallest percentage of the parcel is the purchaser, and when the purchaser designates the percentage of any parcel for which the purchaser will pay the total amount due, the percentage thus designated shall give the individual resident or domestic business entity an undivided interest upon the issuance of a treasurer’s deed, as provided in chapter 448. If two or more eligible bidders under this paragraph have placed an equal bid and the bids are the smallest percentage offered, the county treasurer shall use a random selection process to select the bidder to whom a certificate of purchase will be issued. The percentage that may be designated by any purchaser under this paragraph shall not be less than one percent. If a parcel is not sold under this paragraph, the county treasurer shall offer the parcel for sale under paragraph “b”.
   b.  The county treasurer shall offer for sale to all persons registered to bid under this section each parcel that is not sold under paragraph “a”. The person who offers to pay the total amount due, which is a lien on any parcel, for the smallest percentage of the parcel is the purchaser, and when the purchaser designates the percentage of any parcel for which the purchaser will pay the total amount due, the percentage thus designated shall give the person an undivided interest upon the issuance of a treasurer’s deed, as provided in chapter 448. If two or more persons have placed an equal bid and the bids are the smallest percentage offered, the county treasurer shall use a random selection process to select the bidder to whom a certificate of purchase will be issued. The percentage that may be designated by any purchaser under this subsection
 
paragraph shall not be less than one percent.
   4.  Only those persons as defined in section 4.1 are authorized to register to bid or to bid at the tax sale or to own a tax sale certificate by purchase, assignment, or otherwise. To be authorized to register to bid or to bid at a tax sale or to own a tax sale certificate, a person, other than an individual, must have a federal tax identification number and either a designation of agent for service of process on file with the secretary of state or a verified statement meeting the requirements of chapter 547 on file with the county recorder of the county in which the person wishes to register to bid or to bid at tax sale or of the county where the property that is the subject of the tax sale certificate is located.

Each person authorized to register to bid under this section shall only be allowed to register once for each tax sale and an individual shall not be allowed to register to bid on behalf of more than one person during a tax sale.
    Sec. 2.  APPLICABILITY.  This Act applies to tax sales occurring on or after July 1, 2013.
EXPLANATION
   This bill amends Code chapter 446 relating to tax sales. The bill requires the county treasurer to first offer each parcel for sale only to those registered bidders who are individual residents or domestic business entities as defined in the bill. The bill provides that if a parcel is not sold when offered for sale only to registered bidders who are individual residents or domestic business entities, the parcel is then offered for sale to all registered bidders.
   The bill provides that each person authorized to register to bid under Code section 446.16 shall only be allowed to register once for each tax sale and an individual shall not be allowed to register to bid on behalf of more than one person during a tax sale.
   The bill applies to tax sales occurring on or after July 1, 2013.