SF 269 (LSB 2469XS (5) 91)

SENATE FILE 269

BY  ROWLEY

A BILL FOR

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

DIVISION I
TAX COLLECTIONS FOR BUILDINGS OR IMPROVEMENTS ERECTED ON LAND OWNED BY ANOTHER PERSON

    Section 1.  Section 445.32, Code 2025, 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 twenty thousand dollars, the building is not a residential building, or the improvement is not a residential improvement, 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, the actual value of the building or improvement is twenty thousand dollars or more, and the building is a residential building or the improvement is an improvement to a residential building, 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.
   3.  If a county treasurer commences tax collection procedures under this section for delinquent taxes on a building or improvement, the county treasurer shall send notice to the owner of the land on which the building or improvement is collected in the form prescribed by section 446.9, subsection 1.
DIVISION II
PROPERTY TAX CREDITS AND RENT REIMBURSEMENTS

    Sec. 2.  Section 425.19, Code 2025, 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 III
ABANDONED MOBILE HOMES IN UNINCORPORATED AREAS

    Sec. 3.  Section 555B.1, subsection 5, Code 2025, 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. 4.  Section 555C.1, Code 2025, 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. 5.  Section 555C.1, subsection 5, unnumbered paragraph 1, Code 2025, 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. 6.  Section 555C.2, Code 2025, 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. 7.  Section 555C.3, Code 2025, 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. 8.  Section 555C.4, Code 2025, 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 IV
NONRESIDENTS VEHICLE REGISTRATION AND CERTIFICATES OF TITLE

    Sec. 9.  Section 321.20, subsection 1, paragraph f, Code 2025, is amended to read as follows:
   f.  (1)  If Except as provided in subparagraph (2), if the vehicle is owned by a nonresident but is subject to issuance of an Iowa certificate of title or registration, the application shall must also contain the full legal name, Iowa driver’s license number or Iowa nonoperator’s identification card number, date of birth, bona fide residence, and mailing address of the primary user of the vehicle. If the primary user is a firm, association, or corporation, the application shall must contain the bona fide business address and federal employer identification number of the primary user. The primary user’s name and address shall not be printed on the registration receipt or the certificate of title.
   (2)  If the vehicle is owned by a nonresident who owns the property, as defined in section 535B.1, or land suitable for use in farming in this state, the vehicle is used primarily at the Iowa property, and the vehicle is subject to issuance of an Iowa certificate of title or registration, the application must include reasonable proof, as determined by the department, that the nonresident owns the property, and may contain the owner’s driver’s license number or nonoperator’s identification card number issued by another state in lieu of both the primary user’s information required under subparagraph (1) and the owner’s Iowa driver’s license number or Iowa nonoperator’s identification card number required under paragraph “a”. The department shall adopt rules regarding acceptable proof of ownership of the property required under this subparagraph.
DIVISION V
SPLIT AND CONSOLIDATION OF PARCELS —— TAX SALES

    Sec. 10.  Section 354.2, Code 2025, 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. 11.  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 VI
AUTHORITY TO POSTPONE OR CANCEL TAX SALES

    Sec. 12.  Section 446.7, subsection 1, Code 2025, 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.
   DIVISION I —— TAX COLLECTIONS FOR BUILDINGS OR IMPROVEMENTS ERECTED ON LAND OWNED BY ANOTHER PERSON. 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. The bill allows collections pursuant to Code sections 445.3 and 445.4 or Code chapter 446 (tax sales) relating to residential buildings or improvements on residential buildings, with an actual value of $20,000 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.
   The bill requires a county treasurer to provide notice to the owner of leased land on which a building or improvement is erected prior to commencing tax collection procedures for delinquent taxes on the building or improvement.
   DIVISION II —— 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 III —— 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 IV —— NONRESIDENTS VEHICLE REGISTRATION AND CERTIFICATES OF TITLE. Current law requires an owner of a vehicle to apply for registration and issuance of a certificate of title if the vehicle is required to be registered. The application must include information about the owner, the vehicle, nonowner interests in the vehicle, if applicable, the amount of the fee for new registration, and other information as may reasonably be required by the department of transportation (DOT). In particular, the owner’s full legal name, social security number or Iowa driver’s license number or Iowa nonoperator’s identification card number, date of birth, bona fide residence, and mailing address are required.
   In addition, if the vehicle is owned by a nonresident but still subject to issuance of a certificate of title or registration in Iowa, the application must also contain the full legal name, Iowa driver’s license number or Iowa nonoperator’s identification card number, date of birth, bona fide residence, and mailing address of the primary user of the vehicle.
   The bill provides for alternative application information required for certain nonresidents. Nonresidents who own residential real property or land suitable for use in farming in Iowa that are registering a vehicle that is used primarily at that property may instead apply using the owner’s driver’s license number or nonoperator’s identification card number issued by another state in lieu of both the primary user’s information and the Iowa’s driver’s license number or nonoperator’s identification card number required under current law. A nonresident who applies for registration and issuance of a certificate of title under the bill is required to provide reasonable proof that the nonresident owns such property in Iowa. The DOT must adopt rules regarding acceptable proof of property ownership, including but not limited to a copy of a deed or utility payment receipts. For purposes of the bill, “residential real property” means real property, which is an owner-occupied single-family or two-family dwelling, located in this state, occupied or used or intended to be occupied or used for residential purposes, including an interest in any real property covered under Code chapter 499B (horizontal property (condominiums)).
   In accordance with current law, a nonresident is required to apply for registration and issuance of certificate of title for a vehicle subject to registration to the county treasurer of the county where the primary user of the vehicle is located.
   DIVISION V —— 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 VI —— 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.