HSB 685 (LSB 5824YC (1) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON LATHAM)

A BILL FOR

An Act relating to tax collections for buildings or improvements erected or made by a person on land owned by another person.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 445.32, Code 2024, is amended to read as follows:
   445.32  Liens on buildings or improvements.
   1.  If a building or improvement is erected or made by a person other than the owner of the land on which the building or improvement is located, as provided for in section 428.4, and the actual value of the building or improvement is less than five thousand dollars, the taxes on the building or improvement are and remain a lien on the building or improvement from the date of levy until paid. If the taxes on the building or improvement become delinquent, as provided in section 445.37, the county treasurer shall collect the tax as provided in sections 445.3 and 445.4. This section subsection does not apply to special assessments, or rates or charges.
   2.  If a building or improvement is erected or made by a person other than the owner of the land on which the building or improvement is located, as provided for in section 428.4, and the actual value of the building or improvement is five thousand dollars or more, the taxes on the building or improvement are and remain a lien on the building or improvement from the date of levy until paid. If the taxes on the building or improvement become delinquent, as provided in section 445.37, the county treasurer shall collect the tax as provided in sections 445.3 and 445.4 or pursuant to chapter 446.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   When property adjacent to a public improvement benefits from the improvement, a special assessment may be levied against the adjacent properties that received the benefit to pay for all or a portion of the improvement. Under current law, principal and interest due and delinquent because of a special assessment cannot be collected on a building or improvement erected or made by a person on land owned by another person pursuant to Code sections 445.3 and 445.4. This bill allows collections pursuant to Code sections 445.3 and 445.4 or Code chapter 446 (tax sales) relating to buildings or improvements, with an actual value of $5,000 or more, erected or made by a person on land owned by another person to include principal and interest due and delinquent because of special assessment levies.