SF 2360 (LSB 6576XS (3) 91)

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 including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 435.24, subsection 6, paragraph a, Code 2026, is amended to read as follows:
   a.  As an alternative to the semiannual or annual payment of taxes, the county treasurer may shall accept partial payments of current year home taxes. The treasurer shall transfer amounts from each taxpayer’s account to be applied to each semiannual tax installment prior to the delinquency dates specified in section 445.37 and the amounts collected shall be apportioned by the tenth of the month following transfer. If, prior to the due date of each semiannual installment, the account balance is insufficient to fully satisfy the installment, the treasurer shall transfer and apply the entire account balance, leaving an unpaid balance of the installment. Interest shall attach on the unpaid balance in accordance with section 445.39. Unless funds sufficient to fully satisfy the delinquency are received, the treasurer shall collect the unpaid balance as provided in sections 445.3 and 445.4 and chapter 446. Any remaining balance in a taxpayer’s account in excess of the amount needed to fully satisfy an installment shall remain in the account to be applied toward the next semiannual installment. Any interest income derived from the account shall be deposited in the county’s general fund to cover administrative costs. The treasurer shall send a notice with the tax statement or by separate mail to each taxpayer stating that, upon request to the treasurer, the taxpayer may make partial payments of current year home taxes.
    Sec. 2.  Section 445.36A, subsection 1, Code 2026, is amended to read as follows:
   1.  As an alternative to the semiannual or annual payment of taxes, the county treasurer may shall accept partial payments of taxes. The treasurer shall transfer amounts from each taxpayer’s account to be applied to each semiannual tax installment prior to the delinquency dates specified in section 445.37 and the amounts collected shall be apportioned by the tenth of the month following transfer. If, prior to the due date of each semiannual installment, the account balance is insufficient to fully satisfy the installment, the treasurer shall transfer and apply the entire account balance, leaving an unpaid balance of the installment. Interest shall attach on the unpaid balance in accordance with section 445.39. Unless funds sufficient to fully satisfy the delinquency are received, the treasurer shall collect the unpaid balance as provided in sections 445.3 and 445.4 and chapter 446. Any remaining balance in a taxpayer’s account in excess of the amount needed to fully satisfy an installment shall remain in the account to be applied toward the next semiannual installment. Any interest income derived from the account shall be deposited in the county’s general fund to cover administrative costs. The treasurer shall send a notice with the tax statement or by separate mail to each taxpayer stating that, upon request to the treasurer, the taxpayer may make partial payments of taxes.
    Sec. 3.  APPLICABILITY.  This Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2026.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the county treasurer may accept partial payments for property taxes as an alternative to the annual or semiannual installments. This bill requires each county treasurer to accept partial payments for property taxes in lieu of one annual payment or the semiannual installments.
   The bill makes a similar change to the provision governing the collection of property taxes on manufactured homes and mobile homes under Code chapter 435.
   The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2026.