Senate File 2360 - Introduced SENATE FILE 2360 BY WINCKLER , STAED , PETERSEN , TOWNSEND , BISIGNANO , BLAKE , ZIMMER , DONAHUE , DOTZLER , BENNETT , HARDMAN , and DREY A BILL FOR An Act relating to partial payments of property taxes and 1 including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6576XS (3) 91 ms/md

S.F. 2360 Section 1. Section 435.24, subsection 6, paragraph a, Code 1 2026, 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. The treasurer shall transfer 5 amounts from each taxpayer’s account to be applied to each 6 semiannual tax installment prior to the delinquency dates 7 specified in section 445.37 and the amounts collected shall 8 be apportioned by the tenth of the month following transfer. 9 If, prior to the due date of each semiannual installment, 10 the account balance is insufficient to fully satisfy the 11 installment, the treasurer shall transfer and apply the entire 12 account balance, leaving an unpaid balance of the installment. 13 Interest shall attach on the unpaid balance in accordance with 14 section 445.39 . Unless funds sufficient to fully satisfy the 15 delinquency are received, the treasurer shall collect the 16 unpaid balance as provided in sections 445.3 and 445.4 and 17 chapter 446 . Any remaining balance in a taxpayer’s account in 18 excess of the amount needed to fully satisfy an installment 19 shall remain in the account to be applied toward the next 20 semiannual installment. Any interest income derived from the 21 account shall be deposited in the county’s general fund to 22 cover administrative costs. The treasurer shall send a notice 23 with the tax statement or by separate mail to each taxpayer 24 stating that , upon request to the treasurer, the taxpayer may 25 make partial payments of current year home taxes. 26 Sec. 2. Section 445.36A, subsection 1, Code 2026, is amended 27 to read as follows: 28 1. As an alternative to the semiannual or annual payment 29 of taxes, the county treasurer may shall accept partial 30 payments of taxes. The treasurer shall transfer amounts from 31 each taxpayer’s account to be applied to each semiannual tax 32 installment prior to the delinquency dates specified in section 33 445.37 and the amounts collected shall be apportioned by the 34 tenth of the month following transfer. If, prior to the due 35 -1- LSB 6576XS (3) 91 ms/md 1/ 2

S.F. 2360 date of each semiannual installment, the account balance is 1 insufficient to fully satisfy the installment, the treasurer 2 shall transfer and apply the entire account balance, leaving an 3 unpaid balance of the installment. Interest shall attach on 4 the unpaid balance in accordance with section 445.39 . Unless 5 funds sufficient to fully satisfy the delinquency are received, 6 the treasurer shall collect the unpaid balance as provided 7 in sections 445.3 and 445.4 and chapter 446 . Any remaining 8 balance in a taxpayer’s account in excess of the amount needed 9 to fully satisfy an installment shall remain in the account 10 to be applied toward the next semiannual installment. Any 11 interest income derived from the account shall be deposited 12 in the county’s general fund to cover administrative costs. 13 The treasurer shall send a notice with the tax statement or by 14 separate mail to each taxpayer stating that , upon request to 15 the treasurer, the taxpayer may make partial payments of taxes. 16 Sec. 3. APPLICABILITY. This Act applies to property taxes 17 due and payable in fiscal years beginning on or after July 1, 18 2026. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 Under current law, the county treasurer may accept partial 23 payments for property taxes as an alternative to the annual 24 or semiannual installments. This bill requires each county 25 treasurer to accept partial payments for property taxes in lieu 26 of one annual payment or the semiannual installments. 27 The bill makes a similar change to the provision governing 28 the collection of property taxes on manufactured homes and 29 mobile homes under Code chapter 435. 30 The bill applies to property taxes due and payable in fiscal 31 years beginning on or after July 1, 2026. 32 -2- LSB 6576XS (3) 91 ms/md 2/ 2