SF 2024 (LSB 5131XS (2) 91)

SENATE FILE 2024

BY  ROWLEY

A BILL FOR

An Act relating to local government by modifying property tax credits and rent reimbursements, provisions governing abandoned mobile homes and personal property in rural areas, and tax sales.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
PROPERTY TAX CREDITS AND RENT REIMBURSEMENTS

    Section 1.  Section 425.19, Code 2026, is amended to read as follows:
   425.19  Claim and credit or reimbursement.
   Subject to the limitations provided in this subchapter, and after submission of sufficient proof of income eligibility to the county treasurer, a claimant may annually claim a credit for property taxes due during the fiscal year next following the base year or claim a reimbursement for rent constituting property taxes paid in the base year. The amount of the credit for property taxes due for a homestead shall be paid on June 15 of each year from the elderly and disabled property tax credit fund under section 425.39, subsection 1, by the director of revenue to the county treasurer who shall credit the money received against the amount of the property taxes due and payable on the homestead of the claimant and the amount of the reimbursement for rent constituting property taxes paid shall be paid by the director of health and human services to the claimant from the reimbursement fund under section 425.39, subsection 2, on or before December 31 of each year.
DIVISION II
ABANDONED MOBILE HOMES IN UNINCORPORATED AREAS

    Sec. 2.  Section 555B.1, subsection 5, Code 2026, is amended to read as follows:
   5.  “Mobile home” means the same as defined in section 435.1 and includes “manufactured homes” “manufactured homes” and “modular homes” “modular homes” as those terms are defined in section 435.1, if the manufactured homes or modular homes are located in a manufactured home community or mobile home park or are located in the unincorporated area of a county.
    Sec. 3.  Section 555C.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  “Rural property” means real property located in the unincorporated area of a county.
    Sec. 4.  Section 555C.1, subsection 5, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   “Valueless home” means a home located in a manufactured home community or a mobile home park or on rural property including all other personal property, where all of the following conditions exist:
    Sec. 5.  Section 555C.2, Code 2026, is amended to read as follows:
   555C.2  Removal or transfer of title of valueless home —— presumption of value.
   1.  An owner of rural property or a manufactured home community or mobile home park may remove, or cause to be removed, from the rural property or manufactured home community or mobile home park a valueless home and personal property associated with the home at any time following a determination of abandonment by the rural property owner or by the manufactured home community or mobile home park owner in accordance with section 562B.27, subsection 1, and an order of removal pursuant to chapter 648 without further notice to the owner or occupant of the valueless home. Within ten days of the removal or transfer of title, the rural property owner or manufactured home community or mobile home park owner shall give written notice to the county treasurer for the county in which the rural property or manufactured home community or mobile home park is located by affidavit which shall include a description of the valueless home, its owner or occupant, if known, the date of removal or transfer of title, and if applicable, the name and address of any third party to whom a new title shall be issued.
   2.  A valueless home and any personal property associated with the valueless home shall be conclusively deemed in value to be equal to or less than the reasonable cost of disposal plus all sums owing to the rural property owner or manufactured home community or mobile home park owner pertaining to the valueless home, if the rural property owner or manufactured home community or mobile home park owner or an agent of the owner removes the home and personal property to a demolisher, sanitary landfill, or other lawful disposal site or if the rural property owner or manufactured home community or mobile home park owner allows a disinterested third party to remove the valueless home and personal property or to leave the home on the rural property or in the manufactured home community or mobile home park in a transaction in which the rural property owner or manufactured home community or mobile home park owner receives no consideration.
    Sec. 6.  Section 555C.3, Code 2026, is amended to read as follows:
   555C.3  New title —— third party.
   If a new title to a valueless home is to be issued to a third party, the county treasurer shall issue a new title, upon receipt of the affidavit required in section 555C.2 and payment of a fee pursuant to section 321.47. Any tax lien levied pursuant to chapter 435 is canceled and the ownership interest of the previous owner or occupant of the valueless home is terminated as of the date of issuance of the new title. The new title owner shall take the title free of all rights and interests even though the rural property owner or manufactured home community or mobile home park owner fails to comply with the requirements of this chapter or any judicial proceedings, if the new title owner acts in good faith.
    Sec. 7.  Section 555C.4, Code 2026, is amended to read as follows:
   555C.4  Removal by rural property owner or manufactured home community or mobile home park owner.
   Unless the valueless home is to be titled in the name of a third party, the rural property owner or manufactured home community or mobile home park owner may dispose of a valueless home and any personal property to a demolisher, sanitary landfill, or other lawful disposal site under the terms and conditions as the rural property owner or manufactured home community or mobile home park owner shall determine.
DIVISION III
SPLIT AND CONSOLIDATION OF PARCELS —— TAX SALES

    Sec. 8.  Section 354.2, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  4A.  “Consolidation” means merging two or more tracts or parcels of land into one parcel of land.
   NEW SUBSECTION.  16A.  “Split” means dividing a parcel of land into two or more parcels of land when a plat of survey or acquisition plat is not required.
    Sec. 9.  NEW SECTION.  354.28  Split or consolidation not requiring plat of survey or acquisition plat.
   The county assessor or county auditor, as applicable, shall not approve a split or consolidation for which a plat of survey or acquisition plat is not required, unless each parcel involved in the split or consolidation is not within the redemption period under chapter 447 or the period specified in section 448.12 following a tax sale under chapter 446 and is free from unpaid property taxes, special assessments, and drainage assessments for which a waiver or abatement has not been approved.
DIVISION IV
AUTHORITY TO POSTPONE OR CANCEL TAX SALES

    Sec. 10.  Section 446.7, subsection 1, Code 2026, is amended to read as follows:
   1.  Annually, on the third Monday in June the county treasurer shall offer at public sale all parcels on which taxes are delinquent. The treasurer shall not, however, offer for sale any parcel that is subject to a pending action as the result of a municipal infraction citation under section 364.22, a petition filed under chapter 657, or a petition filed under chapter 657A, if such municipal infraction citation or petition is indexed under section 617.10 and noted in the county system as defined in section 445.1. The sale shall be made for the total amount of taxes, interest, fees, and costs due. If for good cause the treasurer cannot hold the annual tax sale on the third Monday of June, the treasurer may designate a different date in June for the sale not later than one hundred twenty days after the third Monday in June.  After designation of a different date, the treasurer may, for good cause and following approval of the board of supervisors, redesignate the date of the tax sale to a date not more than one hundred twenty days after the immediately preceding designation, but not later than the date for the subsequent year’s annual tax sale.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to local government administration of certain property tax credits and rent reimbursements, abandoned mobile homes and personal property in rural areas, and tax sales.
   DIVISION I —— PROPERTY TAX CREDITS AND RENT REIMBURSEMENTS.  The bill specifies a claim for credit of property taxes due or reimbursement for rent constituting property taxes during the fiscal year shall not be allowed unless the claim is filed with sufficient proof of income eligibility.
   DIVISION II —— ABANDONED MOBILE HOMES AND PERSONAL PROPERTY IN UNINCORPORATED AREAS. The bill changes the definition of “mobile home” in Code chapter 555B (disposal of abandoned mobile homes and personal property) to include an abandoned mobile home in an unincorporated area. By changing the definition of “mobile home” in Code chapter 555B to include an abandoned mobile home in an unincorporated area, the bill establishes similar procedures for the removal of an abandoned mobile home and personal property as manufactured homes or modular homes in a manufactured home community or mobile home park.
   The bill also changes the definition of “valueless home” in Code chapter 555C (valueless mobile, modular, and manufactured homes) to include a home on rural property. By changing the definition of “valueless home” in Code chapter 555C to include a home on rural property, the bill establishes similar procedures for the removal of a valueless home and personal property from a manufactured home community or mobile home park. Code chapter 555C also establishes procedures to issue a new title to a valueless home to a third party.
   DIVISION III —— SPLIT AND CONSOLIDATION OF PARCELS —— TAX SALES. The bill provides that a county assessor or county auditor, as applicable, shall not approve a split or consolidation, as each is defined in the bill, for which a plat of survey or acquisition plat is not required, unless each parcel involved in the split or consolidation is not within the redemption period under Code chapter 447 or the period specified in Code section 448.12 following a tax sale and is free from unpaid property taxes, special assessments, and drainage assessments for which a waiver or abatement has not been approved.
   DIVISION IV —— AUTHORITY TO POSTPONE OR CANCEL TAX SALES.  Code section 446.7 provides that annually, on the third Monday in June, the county treasurer shall offer at public sale all parcels on which taxes are delinquent. However, if for good cause the treasurer cannot hold the annual tax sale on that date, the treasurer may designate a different date in June for the sale.
   The bill modifies the ability of the county treasurer to reschedule the tax sale for good cause by allowing the rescheduled date to be a date not later than 120 days after the third Monday in June. After designation of a different date, the county treasurer may, for good cause and following approval of the board of supervisors, redesignate the date of the tax sale to a date not more than 120 days after the immediately preceding designation, but not later than the date for the subsequent year’s annual tax sale.